Pagaya Technologies Agrees Deal to Buy Asset Manager Theorem

Pagaya Technologies Ltd. has agreed to buy Theorem Technology Inc., a machine learning-enabled asset manager.

With Theorem, Pagaya’s fund management business is expected to grow to more than $3 billion of capital, according to a statement on Tuesday that confirmed a Bloomberg News report.

“Pagaya will be able to fully take advantage of the impressive machine learning investment technology that underlies Theorem’s private credit investment platform,” Pagaya’s Chief Executive Officer Gal Krubiner said in the statement.

Founded in 2014, Theorem uses data science and machine learning to evaluate and identify risks in consumer credit applications. Theorem can conduct independent ...