Pagaya Secures First Variable Funding Note Facility with ATLAS SP Partners, Advancing Long-Term Committed Capital Strategy

The facility provides reusable funding for personal loans rather than funding through a one-time securitization.

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• New revolving warehouse line for personal loans drives capital efficient growth and longer-term funding visibility

NEW YORK--(BUSINESS WIRE)-- Pagaya Technologies Ltd. (NASDAQ: PGY) (“Pagaya”), a global technology company delivering AI-driven product solutions for the financial ecosystem, today announced the closing of its inaugural Variable Funding Note (VFN) facility with ATLAS SP Partners (“ATLAS”), the warehouse finance and securitized products business majority owned by Apollo Funds. The new revolving structure expands Pagaya’s committed capital strategy, establishing nearly $700 million in funding capacity for its personal loan platform to support long-term, scalable origination growth.

Unlike traditional asset-backed securitization (ABS) issuances, Pagaya’s VFN operates as a revolving committed capital facility, allowing Pagaya to draw, repay and redeploy liquidity on an as needed basis. By establishing a dedicated vehicle to season newly originated loans prior to securitization, the facility enhances operational flexibility and builds real-time performance data to optimize execution for Pagaya’s AAA-rated PAID ABS platform and support continued diversification of its securitization activities.

“Securing this VFN with ATLAS is the first step in expanding our warehouse capabilities with banks and other financing partners,” said Jon Dobres, Chief Financial Officer at Pagaya. “As we expand our funding strategy with diverse sources of capital, we drive profitable growth with enhanced funding visibility.”

The VFN program provides a committed, revolving capital structure that functions as a strategic credit facility. Funding capacity is targeted at nearly $700 million for personal loans, giving institutional partners direct, diversified access to consumer credit while offering Pagaya multi-quarter liquidity visibility.

About Pagaya Technologies

Pagaya (NASDAQ: PGY) is a global technology company making life-changing financial products and services available to more people nationwide, as it reshapes the financial services ecosystem. By using machine learning, a vast data network and an AI-driven approach, Pagaya provides consumer credit and other products for its partners, their customers, and investors. Its proprietary API and capital solutions integrate into its network of partners to deliver seamless user experiences and greater access to the mainstream economy. For more information, visit pagaya.com.

About ATLAS SP Partners

ATLAS is a global investment firm providing stable capital, financing, advisory and institutional products to market participants seeking innovative and bespoke structured credit and asset-backed solutions. ATLAS is proud to build upon a legacy of client excellence that includes certainty of execution, deep expertise and full-service capabilities across the asset management landscape. For more information, visit www.atlas-sp.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260929474279/en/

Pagaya Contacts

Investors & Analysts
ir@pagaya.com

Media & Press
press@pagaya.com

ATLAS SP Partners Contacts

Kate Thompson / Kate Kelley / Alexander Wolfsohn
atlas-sp@joelefrank.com
(212) 355-4449

Source: Pagaya Technologies Ltd.

Key Terms

variable funding note financial

A variable funding note is a short-term borrowing tool a company uses to draw and repay different amounts of cash as needed, with interest and maturity that can change over time. Think of it like a corporate credit card: it gives flexible access to cash for day-to-day needs, so investors watch it because the use, size and cost of this funding affect a company’s liquidity, borrowing risk and how stable reported cash flows look.

asset-backed securitization financial

Asset-backed securitization is a process where a financial institution pools together a group of assets—such as loans or receivables—and converts them into a security that can be sold to investors. This allows the original lender to raise funds quickly, while investors gain access to a stream of payments derived from the underlying assets. It’s similar to bundling multiple small income sources into a single investment, providing both liquidity for lenders and investment opportunities for others.

securitization financial

Securitization is when a bank or company takes a bunch of loans or assets, like mortgages or car loans, and bundles them together into a single package. They then sell pieces of this package to investors, who receive regular payments from the borrowers. This process helps the original lender get money quickly and spreads the risk among many investors.