Pagaya Technologies has launched its first variable funding note (VFN) facility, working with ATLAS SP Partners to create $700 million in personal loan funding capacity for its lending platform.
The vehicle will be dedicated to seasoning consumer loans, newly originated through Pagaya's proprietary artificial intelligence-driven underwriting system, before they are ready to be packaged into securitized bonds, the company announced.
Aside from conferring more operational flexibility to Pagaya, it will allow the assets to build real-time performance data to optimize execution for its AAA-rated Pagaya AI Debt Grantor Trust (PAID) securitization platform, according to the company.
"Securing this VFN with ATLAS is the first step in expanding our warehouse capabilities with banks and other financing partners," according to a statement from Pagaya Chief Financial Officer Jon Dobres.
