NEW YORK & TEL AVIV, Israel -

A company that says it’s reshaping asset management using machine learning and big data analytics to manage institutional money now is getting involved with auto financing, too, by leveraging a relationship with a provider that specializes in the subprime market.

On Tuesday, Pagaya publicly announced the expansion of its consumer credit offering into auto financing, with hundreds of millions of dollars already invested in the space and multiple partners, including Flagship Credit Acceptance and Foursight Capital.

And chosen to serve as Pagaya’s new general manager of auto finance is Robert McDonald, who previously was vice president and head of auto and equipment-structured finance at Goldman, Sachs & Co.

The company highlighted that McDonald brings a wealth of invaluable experience, which management sees as helping to drive Pagaya’s expansion in this space.

Pagaya pointed out that its expansion comes at a time when American consumers rely on their vehicles more than ever and are purchasing new and used vehicles in droves.

“The automobile’s importance has been elevated during the pandemic. It is no longer just a means of transportation, but a safe way to experience concerts, weddings, rallies, movies and graduations,” Pagaya said.

In addition to unlocking new opportunities with financing providers, Pagaya noted that this move into auto finance has enabled the company to work with OEMs and their captive finance companies to bring more potential contract holders into their ecosystem.

Pagaya said its ability to partner with OEMs to increase consumer conversion into an OEM’s ecosystem creates sustainable long-term value.

“Pagaya’s investment in auto finance ultimately increases the availability of credit to borrowers. This means that auto manufacturers and auto dealers will be able to get more cars on the road, Pagaya’s lending partners will be able to better monetize their marketing spend, and more consumers will have access to better-priced loans,” McDonald said in a news release. “Everyone wins.”

With a focus on fixed income and alternative credit, Pagaya offers a variety of investment vehicles to institutional investors, including pension funds, insurance companies and banks.

Pagaya’s unique technology platform, Pagaya Pulse, runs on a suite of artificial intelligence technologies and state-of-the-art algorithms that can consistently deliver a high and scalable performance edge. Founded in 2016, the firm’s total assets under management currently sits at more than $2 billion.

Pagaya co-founder and chief executive officer Gal Krubiner also elaborated about the move into auto financing.

“We are excited to take the lead in this space and to provide better options for lending platforms looking to issue more loans and for consumers in need of a reliable means of transportation,” Krubiner said.