GIC, the Singapore sovereign wealth fund, boosted its stake in Pagaya Technologies, a Tel Aviv, Israel-based firm offering artificial intelligence-driven software solutions to assist financial partners in originating consumer credit and real estate loans.
GIC, which initially participated in a Series D financing round in mid-2020, purchased an additional 10 million Pagaya shares at a dollar a share, raising its stake in the company to 9% from roughly 7%, a spokesman for Pagaya confirmed.
Other elements of the strengthened GIC-Pagaya partnership revealed in a joint news release Monday included a three-year extension of the two firms' original five-year funding agreement, giving GIC rights of first refusal to invest in Pagaya financing vehicles.
While details on the amount of GIC's investments with Pagaya aren't being disclosed, Monday's announcement demonstrates the sovereign wealth fund's confidence in Pagaya's ability to offer funds that provide attractive returns, the spokesman said.
GIC has supported Pagaya's ability to deliver a "one-stop solution for institutional investors to invest at scale in consumer credit and real estate assets originated by more than 25 financial institutions and growing," the news release said.
Liew Tzu Mi, GIC's chief investment officer of fixed income and multiasset, in a statement on GIC's website said, "We see a long-term win-win partnership in the platform which allows us to invest in a smart and scalable manner, and where we can also add value through the partnerships we bring."
Pagaya's website said the company's AI-driven credit and analysis offerings provide lenders with real-time customer credit evaluation capabilities, allowing them to "discover and approve new customers who meet their lending criteria, building brand affinity without taking on undue risk."
GIC has an estimated almost $700 billion in assets, according to the Sovereign Wealth Fund Institute.
Pagaya reported network volume in 2022 surged 49% from the prior year to $7.3 billion while the firm's total revenue and other income jumped 58% to $749 million, a Pagaya news release said.
