Pagaya Closes $460 Million Revolving Personal Loan Facility

Pagaya Technologies Ltd. closed a $460 million revolving personal loan facility, as the financial technology firm diversifies its funding strategy.

The transaction, backed by consumer loans, has a 24-month revolving period and could deploy about $850 million of capital over that time, according to a statement from the company. It is Pagaya’s second revolving structure this year.

Unlike a traditional asset-backed security, where the collateral pool is generally fixed after closing, the revolving structure allows excess cash to be used to purchase new loans during the two-year period. That gives Pagaya committed capital that can be repeatedly deployed as it originates more loans.

Pagaya launched its first revolving deal this year in January with a $350 million transaction backed by personal loans and an investment from 26North Partners. That deal also included a 24-month revolving period and had funding capacity of as much as roughly $700 million over its life.

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The company recently reached a forward-flow agreement with Neuberger Berman’s asset-based finance arm for the purchase of as much as $700 million of auto loans.