07:49 AM EDT, 08/09/2024 (MT Newswires) -- Pagaya Technologies ( PGY ) said Friday it has reached an agreement with Castlelake in which Castlelake will purchase up to $1 billion in consumer loans through Pagaya's ( PGY ) network.

The company said Castlelake would buy loans monthly over an initial 12-month period, with the potential for an agreement extension for additional loan purchases over time.

The agreement enhances Pagaya's ( PGY ) funding capabilities and introduces a new strategic partner to its network of over 120 investors, the company said.

It added that the deal will help Pagaya ( PGY ) improve capital efficiency and support its goal of diversifying funding sources beyond its pre-funded asset-backed securities program.

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