Thailand’s Digital Ventures joins AI-based asset manager Pagaya’s $14m series B round

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Digital Ventures, the venture capital arm of Siam Commercial Bank (SCB), has participated in a $14-million series B funding round of Pagaya, an AI-based asset management firm.

According to Pagaya’s announcement on Thursday, the round is co-led by a venture capital fund Oak HC/FT and American Express’s former chairman and CEO Harvey Golub. Other investors include New York-based family office GF Investments, Israel’s insurance firm Clal Insurance Ltd and its seed investor Viola Ventures.

The company said, the Series-B funding will fuel its scalable, tech-driven approach to asset management and help further develop its proprietary algorithm to enter new data-rich asset classes. Additionally, it will also grow its team particularly data scientists and AI specialists and launch new investment strategies next year.

As part of the investment, Golub will join the company’s board.  Dan Petrozzo, venture partner at Oak HC/FT, former Partner and Global Head of Investment Management Technology at Goldman Sacks, and former chief information officer of Fidelity Investments, will also be inducted into the company’s board.

With offices in New York and Tel Aviv, Pagaya was co-founded by Yahav Yulzari, Avital Pardo and its chief executive Gal Krubiner in 2016. Pagaya focuses on deploying machine learning algorithms and big data analytics to deliver measurably higher profits across the fixed income and alternative credit spectrum.

“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.

Its algorithm analyzes millions of data points to assess risk in different financial instruments, identify emerging alternative asset classes and generate an excess return in those sectors such as the multitrillion-dollar consumer credit lending market for institutional investors.

“Even today with an increase in the use of technology in underwriting, there’s a gap between institutions and good borrowers which limits consumer access to the right capital. Pagaya is closing that gap with their AI,” said Golub.

Pagaya closed a $75 million debt-financing deal with Citi in February, and hired Ed Mallon, a 20-year BlackRock veteran, as its chief investment officer. Pagaya manages $250 million in capital, principally from institutional investors including banks, insurance companies, pension funds, asset managers and high net worth investors.

Also read:

Thai bank SCB doubles VC arm Digital Ventures’ fund size to $100m

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.