Pagaya Technologies Ltd. closed its PAID 2025‑REV1 revolving asset‑backed securitization, a $350 million deal structured with affiliates of 26North Partners LP. The 24‑month revolving period allows the transaction to recycle capital as loans are repaid, effectively doubling the funding capacity to roughly $700 million over the life of the ABS.
This is Pagaya’s first revolving structure for its personal‑loan business, a move that diversifies its funding mix beyond the traditional fixed‑term ABS market. By providing a liquid, high‑yield vehicle that can be re‑issued as the underlying consumer loans mature, the company gains the flexibility to reinvest capital in new lending partners across its personal‑loan, auto‑loan and point‑of‑sale segments while maintaining a broad investor base of insurance capital and asset managers.
The deal aligns with Pagaya’s 2026 growth plan, reducing reliance on volatile ABS markets and supporting the company’s strategy to expand personal‑loan volume and partner network. Management highlighted the structure’s attractive carry and reinvestment potential, positioning it as a key tool for disciplined growth amid market uncertainty.
CFO Evangelos Perros noted, “In a market of persisting uncertainty, we continue to drive product innovation as a leader in consumer credit structuring and we’re kicking off the year focused on highly disciplined growth.” Head of Capital Markets Sahil Chandiramani added that the revolving ABS offers investors “attractive carry and reinvestment potential,” underscoring the deal’s appeal to capital‑market participants.
Pagaya’s 2025 ABS activity included a $600 million AAA‑rated PAID 2025‑4, another $600 million PAID deal, a $500 million ABS in December, and a $400 million auto ABS, totaling $7.6 billion in issuance that year. The new revolving structure diversifies the portfolio and signals confidence in the company’s AI‑driven underwriting and portfolio performance.
While specific market‑reaction data were not identified, the transaction is expected to strengthen Pagaya’s capital base and investor confidence, reinforcing its position as an innovative player in consumer‑credit securitization.
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