Affirm announces $4B investment from Sixth Street

Affirm (AFRM) and Sixth Street announced that they have entered into a long-term capital partnership whereby Sixth Street through its asset based finance platform will invest up to $4B by purchasing Affirm loans in a unique AssetCo structure pursuant to a three year, forward flow agreement. The transaction represents the largest capital commitment secured by Affirm to date. It offers flexibility, commitment, and alignment from both partners and provides additional off-balance sheet funding with the ability for Affirm to extend up to more than $20B in loans over the next three years as the company continues to scale its payment network. As an industry-leading underwriter, Affirm offers easy-to-use solutions for merchant partners and access to transparent and flexible financing for consumers, creating attractive risk-adjusted assets and bringing depth to the partnership.