Pagaya to purchase consumer credit funds manager, Theorem, terms undisclosed

Pagaya Technologies announced that it has agreed to purchase 100% of Theorem Technology, Theorem has powered billions of dollars of credit investments across its network since its founding in 2014 with stable, long-term capital, utilizing its proprietary technology. The combination brings Theorem’s consumer credit funds as well as its engineering and data science expertise under the Pagaya umbrella. This strategic transaction solidifies Pagaya’s overall mission to serve its partners, their customers and investors by expanding access to credit across the lending ecosystem. In aggregate, Pagaya’s fund management business is expected to grow to more than $3 billion of capital in investment vehicles separate from and incremental to the Company’s market-leading securitization program, in line with the Company’s financial strategy to diversify its funding sources and enhance its capital efficiency. In addition to its existing investment opportunities, investors in Theorem’s credit funds will now have access to credit assets generated by Pagaya’s network of 30 of the top lenders in the US, including over $180 billion of application volume per quarter.