Pagaya Technologies, a global leader in AI-driven financial products, has announced its acquisition of Theorem Technology, a Silicon Valley-based institutional asset manager specializing in consumer credit. This strategic move aims to integrate Theorem's advanced engineering, data science expertise, and consumer credit funds into Pagaya's expanding ecosystem. By bringing Theorem under its umbrella, Pagaya enhances its mission to broaden access to credit and deliver innovative financial solutions to partners, customers, and investors. The acquisition is expected to bolster Pagaya's fund management business, growing it to over $3 billion in capital across various investment vehicles, complementing its existing market-leading securitization program.
Theorem Technology, founded in 2014, has established itself as a key player in the consumer credit space, managing over $1.7 billion in assets for global institutional investors. The company has acquired over $10 billion in consumer loans using proprietary machine learning models to analyze and price loans, as well as evaluate loan origination platforms. Pagaya’s CEO, Gal Krubiner, expressed confidence that Theorem's institutional fund management expertise will enhance Pagaya’s capabilities, while Theorem's founder, Hugh Edmundson, highlighted the potential for growth and enhanced performance through this combination of technological platforms. Together, Pagaya and Theorem are poised to reshape the financial services landscape.
