Pagaya Secures $700M Auto Loan Forward Flow Deal with Neuberger
Event summary
- Pagaya signed a $700M forward flow agreement with Neuberger Specialty Finance for auto loans sourced through its lending network.
- The deal extends an existing partnership between Pagaya and Neuberger, which manages over $5B across 50+ portfolio companies.
- Pagaya's auto network volume grew to an annualized run-rate of $4.8B last quarter, contributing 75% of its year-over-year network volume growth.
- Neuberger has cumulatively invested over $16B through 80 global origination partners across various market cycles.
The big picture
This deal underscores Pagaya's strategy of securing long-term, committed capital to support its AI-driven auto lending platform. The partnership with Neuberger, a major player in private markets, highlights the growing institutional interest in fintech-enabled credit solutions. Pagaya's ability to scale its auto loan volume while maintaining underwriting discipline will be key to sustaining this momentum.
What we're watching
- Capital Deployment
- How Pagaya will allocate the $700M in committed capital to drive further growth in its auto lending network.
- Credit Underwriting
- Whether Pagaya's AI-driven underwriting can maintain performance through varying market cycles.
- Partnership Dynamics
- The pace at which Pagaya expands its institutional partnerships beyond Neuberger.