The stock price of Pagaya Technologies Ltd. (NASDAQ: PGY) has increased significantly after the company announced a historic forward flow arrangement with Blue Owl Capital. PGY shares increased 10.21% during the pre-market session, hitting $12.20.
A new contract with Blue Owl Capital
The deal allows Blue Owl Capital-managed funds to buy up to $2.4 billion worth of consumer loans through the Pagaya network in the upcoming 24 months. This calculated action supports loan originations in a capital-efficient way and enhances PGY’s existing strong funding capabilities.
This forward flow arrangement strengthens Pagaya’s position in the expanding U.S. loan ecosystem in addition to the company’s market-leading asset-backed securities (ABS) program, which has raised over $26 billion since its launch.
Private Credit in Consumer Lending
This collaboration demonstrates how private credit is becoming more and more significant in the US consumer loan market. Pagaya’s innovative funding model and AI-driven network enable lenders across the nation to expand their reach, providing more consumers with the necessary capital.
The deal reflects a rising demand for assets created through Pagaya’s platform, emphasizing its growing influence in the financial industry. For its partners, their clients, and investors, PGY offers complete consumer credit and residential real estate solutions using machine learning, a large data network, and an AI-driven methodology.
Successful ABS Transaction and Future Growth
In addition to this deal, Pagaya recently completed a $600 million AAA-rated personal loan ABS transaction (PAID 2025-1), which was oversubscribed and increased from its initial size of $500 million. The transaction attracted 32 unique investors, with most being repeat participants, underscoring strong capital market interest in PGY’s AI-enabled consumer credit assets.
The business has raised more than $26.6 billion in 65 ABS deals since 2018, solidifying its place as a major force in consumer finance. Pagaya is well-positioned for further success in 2025 as it develops and broadens its product offerings, using its AI skills and business alliances to keep a competitive edge in the loan industry.