Consumer credit fintech Pagaya Technologies has arranged a new forward flow agreement to sell up to $500 million of auto loans sourced through its technology platform to alternative investment firm Castlelake.
Pagaya will use the agreement to grow its auto lending platform and asset-backed securities (ABS) programme, which recorded an annualised run-rate of $2 billion in Q2 2025. This is the second transaction closed between Pagaya and Castlelake, which together arranged a similar deal for personal loan assets in July, worth up to $2.5 billion over a 16-month term.
Sanjiv Das, president and co-founder of Pagaya, says this latest forward flow agreement with Castlelake will provide “stable and diversified funding for our lending partners”, and describes the deal as “a critical element as the programme matures and scales”.
Pagaya previously secured a five-year $280 million credit facility led by BlackRock early last year, while it also announced late last month the closing of a $500 million personal loan ABS transaction, its seventh fully-prefunded PAID deal of 2025.
Aside from auto and personal loans, Pagaya also offers point-of-sale financing among its three core product verticals. The company, based between New York and Tel Aviv, provides underwriting solutions to a network of 31 lending partners, using AI technology to expand credit access for borrowers.
Source: https://www.fintechfutures.com/
