Pagaya Technologies jumps as Blue Owl agrees to purchase $2.4B of consumer loans

Pagaya Technologies

06/02/2025 14:47

** Shares of financial technology firm Pagaya Technologies
 PGY.O  jump as much as 12.5% in early trading; last up 6.7% at
$11.15
    ** Funds managed by alternative asset manager Blue Owl
Capital  OWL.N  have agreed to purchase as much as $2.4 bln of
consumer loans through the PGY network over a 24-month period,
PGY says
    ** Deal is in the form of a so-called forward flow
agreement, wherein the buyer agrees to buy loans before they
have originated
    ** Transaction demonstrates the role private credit can play
to support the U.S. consumer lending industry, Ivan Zinn, head
of alternative credit at Blue Owl says
    ** Brokerage Benchmark says PGY is now well-positioned to
fund loan organizations with minimal use of its own capital
    ** PGY stock slumped 43.9% in 2024

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))