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

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