Affirm Signs $4 Billion Capital Deal with Sixth Street

Affirm Holdings, Inc. (NASDAQ: AFRM) shares rose 4% following the announcement of a significant capital partnership with global investment firm Sixth Street. This collaboration is set to provide Affirm with funding of up to $4 billion for its loans, representing the largest capital commitment the payment network company has received to date. The agreement, which will last for three years, is intended to enhance Affirm's ability to offer more credit through a forward-flow arrangement.

The partnership with Sixth Street, which operates an Asset-Based Finance platform, is expected to provide Affirm with additional off-balance-sheet financing. This financial arrangement is anticipated to support Affirm's goal of expanding its payment network by potentially enabling it to extend over $20 billion in loans within the next three years.

Affirm's Chief Capital Officer Brooke Major-Reid expressed pride in the establishment of this partnership, noting that Sixth Street's expertise is a key factor in providing efficient financing to aid Affirm's growth objectives. On the other hand, Sixth Street's Asset-Based Finance Partner and President Michael Dryden acknowledged the value of Affirm's financing solutions and expressed optimism about the future of the partnership.

Affirm's Chief Operating Officer Michael Linford indicated that the partnership marks a significant milestone in the company’s growth strategy and asset creation. Linford emphasized that Affirm's expertise in capital markets is a key competitive advantage that the partnership will strengthen.