Pagaya Technologies Ltd. closed a $500 million auto asset‑backed securitization, designated RPM‑2026‑2, on April 24 2026. The deal marks the largest auto ABS transaction in the company’s history and expands its RPM shelf, which has been operating for seven years and has become a key source of high‑quality collateral for the firm’s capital‑raising efforts.
The transaction attracted sixteen institutional investors, many of whom are repeat participants, underscoring the confidence that the investment community places in Pagaya’s credit‑risk management and data‑driven underwriting platform. The breadth of investor participation signals that the market views the auto program as a reliable source of predictable, low‑cost capital.
RPM‑2026‑2 is part of Pagaya’s broader strategy to diversify its funding mix beyond traditional ABS. The company has been building forward‑flow agreements with partners such as Castlelake, Sound Point Capital, and Blue Owl, covering personal loans, auto loans, and point‑of‑sale loans. By adding this auto ABS to its portfolio, Pagaya strengthens its liquidity position and supports the continued expansion of its AI‑driven underwriting platform for consumer‑finance partners.
The transaction comes on the back of a strong financial year for Pagaya. In 2025, the company reported revenue of $1.30 billion, a 26.07% year‑over‑year increase, and achieved GAAP profitability for the first time, with four consecutive quarters of profitability reported by February 2026. The capital raised through RPM‑2026‑2 will help sustain this growth trajectory and fund further development of the AI platform that underpins Pagaya’s underwriting and risk‑management capabilities.
Sahil Chandiramani, Head of Capital Markets, said, “The successful execution of RPM‑2026‑2 is a testament to the trust we’ve built within the investment community over the last seven years.” He added, “As we shift toward higher‑quality credit and application flow via our network of lenders, we are seeing increasing demand in our auto program from top‑tier institutional partners, reflecting enduring confidence in our ability to deliver consistent execution and performance across our platform.”
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.