Affirm Holdings, a payment network empowering consumers and merchants, has announced a long-term capital partnership with global investment firm Sixth Street. Under this agreement, Sixth Street will invest up to $4 billion by purchasing Affirm loans through a unique AssetCo structure as part of a three-year forward flow arrangement. This partnership, the largest capital commitment in Affirm’s history, will enable the company to extend over $20 billion in loans during the next three years, enhancing its ability to scale its payment network. Affirm’s industry-leading underwriting capabilities and commitment to transparent and flexible financing make it an attractive partner for Sixth Street’s Asset-Based Finance platform.
Affirm, which serves over 19 million active consumers and generated $28 billion in gross merchandise volume over the past year, continues to diversify its funding model, boasting a total funding capacity of $16.8 billion as of September 30, 2024. Sixth Street, a global firm managing over $80 billion in assets, highlighted the partnership’s potential to support Affirm’s growth trajectory. Leaders from both companies emphasized their shared vision for delivering innovative and scalable financial solutions, positioning this collaboration as a milestone in Affirm’s mission to offer honest financial products and drive merchant growth.
