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Singapore’s GIC leads US$102 million fundraising in Israel’s Pagaya

finger pointing at AI projection on screen
By Asia Asset Management  
June 19, 2020

Singapore sovereign wealth fund GIC Pte Ltd led a US$102 million fundraising round in Pagaya, an asset management firm with headquarters in the US and Israel that helps institutional investors build portfolios using artificial intelligence (AI) technology.

Other new investors in the fundraising include US-based Aflac Global Ventures and Israel’s Poalim Capital Markets, Pagaya says in a statement on June 17.

Existing investors, including two from Israel, US-based GF Investments, Thailand’s Siam Commercial Bank, as well as Harvey Golub, a Pagaya board member who is a former chairman and chief executive officer of American Express, also participated.

Pagaya says it will use the money to hire more data scientists, develop its technology, and invest in new asset classes such as real estate, loans, mortgages and corporate credit.

According to Pagaya CEO and co-founder Gal Krubiner, “more and more” investors are turning to the company to gain a performance edge as it continues “to unlock unprecedented value with our AI even during extreme stress”.

“Closing a round of this magnitude, with such a high-quality group of investors, is a testament to the hard work of the Pagaya team,” he says in the statement.

Pagaya was established in 2016 and says it currently manages more than $1.6 billion of assets for institutional investors such as insurers, pension funds and sovereign wealth funds.

GIC has been actively investing in technology firms over the last year, participating in fundraising worth more than $280 million in three companies before Pagaya, including London-based payment solutions provider Checkout last month.

The fund typically does not disclose its individual investments in these fundraising.

GIC also does not disclose its official assets figure, saying only that it’s “well over” $100 billion. The Sovereign Wealth Centre estimates the fund had $510 billion of assets under management as of end-March 2019.