All Access

Fintech Deals

Standard

Fintech Deals Alerts

Alert

Fintech Deals Thought Bubble

Thought Bubble

mustard

BFD Expert Voices - Private Credit

BFD Expert Voices

topics

politics-policy

epstein-files

donald-trump

2026-midterm-elections

immigration

behind-the-curtain

race-and-equity

technology

privacy-tech-regulation

automation-and-ai

tiktok-news

big-tech

social-media

cybersecurity

economy

social-security

inflation

tariffs

federal-reserve

jobs

transportation

business

stock-market-news

retail-news

crypto

media

elon-musk

dealmaking

health

rfk-jr

drug-prices

axios-explains-abortion

public-health

world

israel

axios-explains-ukraine

iran

russia

china

energy-climate

nuclear-energy

climate-energy-policy

climate-change

extreme-weather

alternative-energy

electric-vehicles

science

emerging-tech

biomedicine

newsletters

pittsburgh

atlanta

san-diego

charlotte

boulder

washington-dc

kansas-city

dallas

denver

detroit

des-moines

austin

boston

chicago

cleveland

columbus

houston

indianapolis

miami

nashville

new-orleans

nw-arkansas

philadelphia

phoenix

portland

richmond

salt-lake-city

san-antonio

san-francisco

seattle

tampa-bay

twin-cities

raleigh

huntsville

axios-local

axios-pro

axios-live

the-axios-show

Publicly traded credit analysis firm Pagaya (Nasdaq: PGY) plans to go shopping for other fintechs after securing a new $75 million investment from longtime-backer Oak HC/FT, the company tells Axios exclusively.

Why it matters: The investment will give Pagaya dry powder to make acquisitions in a buyer's market for fintech deals.

Details: With its investment, Oak HC/FT will receive Series A convertible preferred stock with a 6% PIK annual dividend and an additional minimum return in certain circumstances.

According to Pagaya CFO Michael Kurlander, the conversion price is $1.25, or about a 35% premium to yesterday’s close.

Notably, the preferred shares will not have any special governance or voting rights.

State of play: Pagaya’s market cap has plummeted since going public via SPAC merger at an $8.5 billion valuation last June, landing at about $620 million at the close of trading Wednesday.

But, according to CEO Gal Krubiner, the same dynamics that have slammed Pagaya's valuation have also created attractive buying opportunities in the venture-backed fintech market.

“The valuation of companies is declining, the amount of funding is very low… and we think there is a unique opportunity to extend M&A and approach good, founder-led companies with unique capabilities that are struggling a little bit with funding in these markets and get them under the Pagaya umbrella,” Krubiner says.

Between the lines: Pagaya is looking for companies that operate in categories where it doesn’t currently have a presence, like mortgages or solar loans.

It’s also looking at potential acquisitions of embedded finance solutions that could make it easier for Pagaya to work with banks and other lenders to extend credit.

The big picture: While the current macro environment has hit Pagaya’s valuation, the prevalence of high interest rates has not dramatically slowed down its credit analysis business.

Along with the Oak HC/FT transaction, the company is reporting that it expects to be at the high end of or exceed its first-quarter guidance for network volume, total revenue and adjusted EBITDA.

“We actually see more applications, we see more flow, and we're becoming more relevant for lenders to solve their liquidity problems,” Krubiner says.

Context: OakHC/FT has been an investor in Pagaya since it co-led the then-startup’s $14 million Series B funding round in 2018.

According to an SEC filing, the firm owned approximately 13.5% of Pagaya Class A shares shortly before the SPAC merger was completed.

Post-transaction, it will hold about 16% of Pagaya’s basic outstanding shares, Kurlander says.

Pagaya plans M&A foray with $75M Oak HC/FT investment

Oak HC/FT's investment will bolster Pagaya's M&A efforts

Illustration of two people shaking hands on a giant stack of money. 

Fintech

Publicly traded credit analysis firm Pagaya (Nasdaq: PGY) plans to go shopping for other fintechs after securing a new $75 million investment from longtime-backer Oak HC/FT, the company tells Axios exclusively.Why it matters: The investment will give Pagaya dry powder to make acquisitions in a buyer&#x27;s market for fintech deals.

Pagaya plans M&A foray with $75M Oak HC/FT investment

What to read next