Digital Ventures, the venture capital arm of Thailand’s Siam Commercial Bank, has made a return investment in Israel-based artificial intelligence (AI) driven asset management firm Pagaya, backing its $25-million Series C round.
According to an announcement on Wednesday, the round was led by US-based venture fund Oak HC/FT and joined by seed investor Viola Ventures, Israel’s biggest insurance firm Clal Insurance Ltd, New York-based GF Investments and former American Express chairman and CEO Harvey Golub. All the Series C investors had participated in Pagaya’s Series B round in August 2018 that saw it raise $14 million.
The deal marks the first Series C investment by Digital Ventures.
The Israeli fintech company said it plans to use the fresh funding to further develop its technology and pursue new asset classes such as real estate and other fixed-income assets including auto loans, mortgages and corporate credit.
Pagaya uses machine learning and big data to manage institutional money, with a focus on fixed income and alternative credit. It offers a variety of discretionary funds to institutional investors, including pension funds, insurance companies and banks.
It claims to manage $450 million for banks, insurance firms, pension funds, asset managers and sovereign wealth funds. Its investment team has also expanded from 20 data scientists and AI specialists last year to 30 currently.
In February this year, the company announced $100 million in actively managed asset-backed securities (ABS). It had said that it will use AI to select and purchase individual loans for the ABS, instead of the traditional ABS mechanics of securitizing a pool of previously assembled assets.