Pagaya Technologies has closed its first Variable Funding Note (VFN) facility, securing nearly $700 million in funding capacity from ATLAS SP Partners, a firm majority-owned by Apollo Funds. The multi-year revolving credit line will support Pagaya’s personal loan platform.
Unlike a traditional asset-backed securitization, the VFN structure lets Pagaya draw, repay and reuse funds as needed. The facility provides committed capital to purchase personal loans from lending partners, diversifies the company’s funding sources and supports growth of its AI-driven lending network.