Pagaya to sell up to $500M of auto loans to Castlelake

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Pagaya Technologies (PGY [https://seekingalpha.com/symbol/PGY]) entered a new forward flow agreement with Castlelake LP, a global alternative investment firm specializing in asset-based private credit, for the purchase of up to $500M of auto loans sourced through Pagaya's platform, the company said on Monday.

It's the first auto forward-flow transaction between the two companies and has the potential to significantly boost Pagaya's (PGY [https://seekingalpha.com/symbol/PGY]) auto lending platform, alongside its AAA-rated auto ABS program, reflecting its strong credit performance, Pagaya said in a statement.

The agreement diversifies funding for Pagaya's lending partners and expands Pagaya's partnership with Castlelake, adding auto loans to its existing agreement regarding personal loans.

"This agreement is an important step in accelerating the growth of our auto business, providing stable and diversified funding for our lending partners – a critical element as the program matures and scales," said [https://www.businesswire.com/news/home/20251103095285/en/Pagaya-Signs-Auto-Forward-Flow-Agreement-with-Castlelake-to-Purchase-Up-to-%24500-Million-in-Auto-Loans] Pagaya President and Co-Founder Sanjiv Das.

Pagaya (PGY [https://seekingalpha.com/symbol/PGY]) stock dipped 2.1% in early Monday trading.

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