Pagaya launches its first revolving facility for $700 million

Pagaya has closed its first Variable Funding Note (VFN) transaction with ATLAS SP Partners, a warehouse finance and securitized products business predominantly owned by funds managed by Apollo.

The facility provides nearly $700 million of committed funding capacity for consumer loans, with capital that can be drawn, repaid, and recycled as needed.

Under this warehouse structure, newly originated loans will be seasoned prior to securitization through Pagaya’s PAID ABS platform, with the resulting securities expected to carry AAA ratings.