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Pagaya Completes Acquisition of Theorem to Enhance AI-Driven Lending Solutions
Slice of Finance Team
31 Oct
Key Highlights:
Pagaya completes acquisition of Theorem Technology, enhancing its AI-driven financial solutions.
$3 billion combined credit fund platform expands Pagaya’s capabilities.
Increased access to consumer credit assets from top U.S. lenders.
Accretive benefits expected in 2025, driving capital efficiency and growth.
Source: Business Wire
Notable Quotes:
“Our combined capabilities will enable us to better meet unprecedented institutional demand for consumer credit, while also diversifying our funding sources and improving our capital efficiency.”
“The combination of our technology platforms and funding capabilities will allow us to deliver a truly unique solution for the U.S. lending ecosystem at increased scale.”
Our Take:
This acquisition of Theorem Technology by Pagaya underscores a pivotal advancement in AI-driven financial services, particularly in underwriting and consumer credit solutions. By merging Theorem’s robust machine-learning underwriting technology and Pagaya’s extensive lending network, the company is poised to broaden its reach and boost capital efficiency in the U.S. credit market. Expected accretive benefits in 2025 indicate the strategic long-term growth potential of this acquisition, as Pagaya continues to diversify funding sources and harness advanced AI to meet rising institutional demands. This partnership not only strengthens Pagaya’s competitive edge but also enhances asset diversity and scalability in the consumer credit space.