Affirm: New Capital Partnership Will Boost Access to Flexible Payment Options

Payment network Affirm Holdings said in a Friday (Jan. 24) press release that its newly expanded capital partnership with Liberty Mutual Investments (LMI) will increase consumers’ access to Affirm’s flexible payment options.

The companies began their long-term capital partnership in 2019, added a forward flow loan purchase program in 2023 and upsized that program so that through June 2027, LMI will purchase Affirm’s installment loans on a forward flow basis, in amounts up to $750 million outstanding, they said in a Friday (Jan. 24) press release.

LMI expects to invest up to $5 billion in the program over time, according to the release.

“Affirm’s mission to deliver honest financial products that improve lives is premised on driving positive credit outcomes, having access to deep and diverse pools of committed capital, and leveraging the power of partnerships across our network,” Affirm Chief Capital Officer Brooke Major-Reid said in the release. “With a strong partnership spanning six years, we are excited to take this next step with Liberty Mutual Investments.”

John Kim, managing director and head of Alternative Credit at Liberty Mutual Investments, said in the release that LMI looks forward to further strengthening the partnership.

“Liberty Mutual Investments’ ability to invest across the capital structure with a single-client focus allows us to flexibly provide solutions and scale to our long-term partners, like Affirm,” Kim said.

Affirm maintains a “diverse and durable” funding model across multiple channels and with more than 130 distinct investors, according to the release.

The company increased its total funding capacity by more than 50% over the last two years, bringing it to $16.8 billion as of Sept. 30, per the release.

Affirm announced in December that it formed a long-term capital partnership with global investment firm Sixth Street that will see that firm invest up to $4 billion by purchasing Affirm loans in a three-year forward flow agreement.

That capital commitment will enable Affirm to extend up to $20 billion in loans over the next three years, the companies said at the time. Sixth Street said it plans to continue building on this relationship and supporting Affirm’s growth in the years to come.

In November, Affirm said it owns a third of the volume and more than half of the revenue in the U.S. pay later space.