Affirm, PGIM expand capital partnership with $3 billion loan facility

SAN FRANCISCO - Affirm (NASDAQ:AFRM), whose stock has delivered an impressive 96.2% return over the past year according to InvestingPro data, and PGIM Fixed Income, a Prudential Financial (NYSE:PRU) company, announced Wednesday the expansion of their capital partnership through a new revolving pass-through loan sale facility that will invest up to $3 billion over 36 months.

The facility will purchase up to $500 million of Affirm loans at any given time, according to a press release statement. This arrangement follows PGIM’s previous $500 million private purchase of Affirm loans in December 2024 and earlier investments in Affirm’s asset-backed securitizations. With a strong current ratio of 13.47, InvestingPro data shows Affirm’s liquid assets significantly exceed its short-term obligations.

PGIM Fixed Income, which manages $862 billion in assets as of March 31, 2025, operates a securitized credit platform with more than $145 billion in assets under management.

Edwin Wilches, co-head of Securitized Products at PGIM Fixed Income, called the agreement "a further testament to our commitment to finding durable sources of risk-adjusted returns for our clients."

Affirm, which provides pay-over-time consumer financing options, reported generating over $33 billion in gross merchandise volume for the twelve months ending March 31, 2025. The company, currently valued at $19.32 billion, has shown robust revenue growth of 42.54% over the past year. The company’s total funding capacity reached $23.3 billion as of the same date, marking its ninth consecutive quarterly increase. For deeper insights into Affirm’s financial health and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, which cover over 1,400 US stocks.

The payment network has issued 23 asset-backed securitizations totaling $11.5 billion with participation from over 150 capital partners across various institution types, including asset managers, insurance companies, pension funds, and banks.

In other recent news, Affirm has entered into an agreement with Prudential Financial’s investment arm to sell up to $500 million in consumer loans over three years. This deal allows Affirm to re-lend the investment, potentially financing up to $3 billion in buy-now-pay-later loans. Additionally, Affirm has expanded its partnership with Williams-Sonoma to include Canada, enabling Canadian customers to use Affirm’s payment options at various brands such as West Elm and Pottery Barn. In another development, Affirm has partnered with Cali Pass to offer flexible payment options for ski passes, enhancing accessibility for customers by allowing them to pay in installments without hidden fees. Furthermore, Affirm has announced a significant partnership with Costco, becoming a pay-over-time provider for Costco.com in the United States. This collaboration allows Costco members to finance purchases over $500 with transparent payment plans, aligning with consumer behavior trends observed in fiscal year 2024. These recent developments highlight Affirm’s efforts to expand its reach and provide flexible financial solutions across different markets.

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