A machine learning, big data analytics and artificial intelligence (AI) technology specialist FinTech for managing institutional money has raised $14 million in a series B funding round.
Pagaya was established in 2016 and has sought to develop new investment markets for institutional investors through its AI-based asset management offering.
The company manages institutional money by investing in market opportunities that have previously been inaccessible to the buy-side. Its client base includes banks, insurance companies, pension funds, asset managers and high net worth individuals.
The $14 million series B funding round was led by venture capital fund Oak HC/FT, and the former CEO of American Express, Harvey Golub. Other investors included GF Investments, Clal Insurance and Siam Commercial Bank.
“The investment validates the strength of Pagaya’s technology, and it’s an honour to work with investors and bring on new board members who believe in our long-term vision,” said Gal Krubiner, CEO and co-founder of Pagaya. “We can’t wait to put this funding to work and continue to reshape how technology is used in asset management.”
Pagaya added that the funding will be used to develop its proprietary algorithm and grow its 20-person investment team, which currently consists of data scientists and AI specialists. The company will also build out a global sales force and launch new investment strategies over the next year.
Dan Petrozzo, venture partner at Oak HC/FT, who is also the former global head of investment management technology at Goldman Sachs and the former chief information officer at Fidelity Investments, will join the board at Pagaya as part of the deal.
“AI will be a massive part of institutional finance in the future, and the top-notch team at Pagaya has developed the most advanced approach to implementing AI in investment management,” said Petrozzo. “We’re excited to be on board as their vision and solutions lead the industry forward.”
Earlier this year, Pagaya closed a $75 million debt-financing deal with Citi and hired 20-year BlackRock veteran, Ed Mallon, as its new chief investment officer. The company currently manages in $250 million in capital from institutional investors.