US BNPL fintech Affirm secures $4bn capital partnership with Sixth Street
US-based buy now, pay later (BNPL) company Affirm has secured a “long-term capital partnership” with Sixth Street, a San Francisco-headquartered investment firm managing over $80 billion in assets.
Affirm secures capital partnership worth $4 billion
Under the agreement, Sixth Street will utilise its Asset-Based Finance platform to invest “up to $4 billion” by acquiring Affirm loans in an AssetCo (asset company) structure, as part of a three-year forward flow arrangement.
According to a joint statement, the deal, which is the largest capital commitment Affirm has secured to date, will give the company the ability to “extend up to more than $20 billion in loans over the next three years as the company continues to scale its payment network”.
Affirm, which says it has grown its total funding capacity by more than 50% over the last two years, states it intends to “continue its approach of regularly adding capacity across channels and building upon its relationships with its long-term capital partners”.
The news comes just weeks after Affirm announced it was expanding into the UK market, with the company introducing “interest-free and interest-bearing” monthly payment plans for UK consumers, regulated by the Financial Conduct Authority (FCA).
Since its founding in 2012, Affirm has grown to serve over 19 million active users. The company generated $28 billion in gross merchandise volume (GMV) for the year ending 30 September 2024.
