Pagaya Technologies Ltd. entered into a forward flow agreement with Sound Point Capital Management, LP, a global alternative credit manager that manages more than $45 billion in assets. The deal provides Pagaya with a commitment to purchase up to $720 million of point‑of‑sale (POS) loans sourced through Pagaya’s AI‑driven lending platform, marking the company’s first forward flow transaction for its POS program.
The agreement expands Pagaya’s funding mix beyond its traditional asset‑backed securitization and forward flow arrangements with other partners. By securing a sizable, committed capital commitment from Sound Point, Pagaya can increase its capacity to originate and fund POS loans, which have grown to represent a larger share of its overall loan portfolio. The forward flow arrangement also supports Pagaya’s strategy of diversifying its capital sources to reduce reliance on volatile ABS markets and to lower its overall cost of capital.
Pagaya’s recent funding history underscores the momentum behind this deal. In late November 2025, the company closed a $500 million auto loan forward flow with Castlelake and a $400 million auto ABS transaction. In January 2026, it also closed a $350 million revolving ABS for personal loans and launched a AAA‑rated POS revolving ABS shelf (POSH) in May 2025. These transactions demonstrate Pagaya’s ability to secure capital through multiple channels and its growing appetite for scaling its POS business.
Management emphasized the significance of the partnership. Sanjiv Das, President and Co‑founder, said, “We are proud to partner with Sound Point on our inaugural point‑of‑sale forward flow transaction.” Philip Bartow, Head of Specialty Finance and Fintech Lending at Sound Point, added, “Pagaya has built a differentiated, institutional‑grade platform for accessing consumer credit. We’re excited to partner with Pagaya to support the continued growth of its point‑of‑sale strategy, while offering our investors consistent exposure to short‑duration assets with highly attractive risk‑adjusted returns and durable income.”
The forward flow agreement strengthens Pagaya’s capital‑light, B2B model by providing a predictable source of capital that can be deployed to support its expanding POS platform. The commitment enhances the company’s ability to scale, attract additional lending partners, and maintain competitive fee structures while preserving its low‑balance‑sheet profile. While the deal does not alter current guidance, it positions Pagaya to pursue further growth opportunities and to reinforce its focus on profitability and capital efficiency.
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.