Shares of Affirm Holdings , Inc. (NASDAQ: NASDAQ:AFRM) experienced a 4% increase following the announcement of a substantial capital partnership with the global investment firm Sixth Street. This collaboration is set to provide Affirm with up to $4 billion for its loans, representing the largest capital commitment the payment network company has received to date. The agreement, which spans three years, is a forward flow arrangement that aims to bolster Affirm's ability to offer more loans.
The partnership with Sixth Street, which operates an Asset Based Finance platform, is expected to furnish Affirm with additional off-balance sheet funding. This financial arrangement is projected to enable Affirm to potentially issue over $20 billion in loans within the next three years, supporting the company's objective to broaden its payment network.
Affirm's Chief Capital Officer, Brooke Major-Reid, voiced pride in the establishment of this partnership, noting the expertise of Sixth Street as a pivotal element in providing efficient funding to assist in Affirm's expansion goals. On the other side, Michael Dryden, Partner and Head of Asset Based Finance at Sixth Street, acknowledged the value of Affirm's financing solutions and shared his optimism about the partnership's prospects.
Michael Linford, the Chief Operating Officer of Affirm, remarked that the partnership marks a significant milestone in the company's growth strategy and asset generation. He highlighted Affirm's expertise in the capital markets as a key competitive edge that the partnership stands to enhance.
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