Affirm and Sixth Street Announce Long-Term Capital Partnership to Invest up to $4 Billion in Affirm Loans
13 Dezembro 2024 - 10:50AM
Business Wire
Affirm Holdings, Inc. (NASDAQ: AFRM), the payment network that
empowers consumers and helps merchants drive growth, and Sixth
Street, a leading global investment firm, today announced that they
have entered into a long-term capital partnership whereby Sixth
Street through its Asset Based Finance platform will invest up to
$4 billion 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
$20 billion 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.
“We are honored to establish this new long-term partnership with
Sixth Street as we continue to strengthen and diversify our
platform to support our ambitious growth plans with capital
efficient funding,” said Brooke Major-Reid, Chief Capital Officer
at Affirm. “Sixth Street’s expertise in asset-based finance,
long-term capital and collaborative approach make them an ideal
partner for Affirm. Over the last several years, we have been
extremely thoughtful in working with a diverse mix of world-class
investors as we empower more consumers and merchants with our
honest financial products.”
“Affirm’s ability to provide flexible, scalable financing
solutions is unparalleled, and we see tremendous opportunity in
this partnership,” said Michael Dryden, Partner and Head of Asset
Based Finance at Sixth Street. “We look forward to being a key
funding partner for Affirm and continuing to build on this
relationship to support the company’s growth in the years to
come.”
“This partnership represents a major step forward in how we
support Affirm’s future growth plans as we continue to generate
quality assets at scale by underwriting every transaction,” said
Michael Linford, COO at Affirm. “Our capital markets expertise is
an important point of competitive differentiation, and we believe
this partnership with Sixth Street’s world-class investment team
reinforces that.”
Affirm maintains a diverse and durable funding model across
multiple channels, including through warehouse facilities, forward
flow agreements, and asset-backed securitizations. With more than
130 distinct investors representing a broad range of institution
types, Affirm intends to continue its approach of regularly adding
capacity across channels and building upon its relationships with
its long-term capital partners. As of September 30, 2024, Affirm’s
total funding capacity was $16.8 billion, which has grown by more
than 50% over the last two years.
Affirm empowers more than 19 million active consumers with a
transparent and flexible way to pay over time without late or
hidden fees. The company generated over $28 billion in gross
merchandise volume (GMV) for the last twelve months ending
September 30, 2024.
About Affirm Affirm’s mission is to deliver honest
financial products that improve lives. By building a new kind of
payment network – one based on trust, transparency and putting
people first – we empower millions of consumers to spend and save
responsibly, and give thousands of businesses the tools to fuel
growth. Unlike most credit cards and other pay-over-time options,
we never charge any late or hidden fees. Follow Affirm on social
media: LinkedIn | Instagram | Facebook | X.
About Sixth Street Sixth Street is a global investment
firm with over $80 billion in assets under management and committed
capital. The firm uses its long-term flexible capital, data-enabled
capabilities, and One Team culture to develop themes and offer
solutions to companies across all stages of growth. Founded in
2009, Sixth Street has more than 650 team members including over
250 investment professionals around the world. For more
information, visit https://sixthstreet.com or follow Sixth Street
on LinkedIn.
Forward Looking Statement This press release contains
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended (the “Securities Act”), and
Section 21E of the Securities Exchange Act of 1934, as amended,
that involve risks and uncertainties. All statements other than
statements of historical fact contained in this press release,
including statements regarding Affirm’s future results of
operations and financial condition, business strategy, and plans
and objectives of management for future operations, are
forward-looking statements. In some cases, forward-looking
statements may be identified by words such as “anticipate,”
“believe,” “continue,” “could,” “design,” “estimate,” “expect,”
“intend,” “may,” “plan,” “potentially,” “predict,” “project,”
“should,” “will,” “would,” or the negative of these terms or other
similar expressions. Forward-looking statements are based on
management’s beliefs and assumptions and on information currently
available. These forward-looking statements are subject to a number
of known and unknown risks, uncertainties and assumptions,
including risks described under “Risk Factors” in Affirm’s Annual
Report on Form 10-K for the fiscal year ended June 30, 2024. Except
as required by law, Affirm undertakes no obligation to update
publicly any forward-looking statements for any reason after the
date of this press release or to conform these statements to actual
results or to changes in our expectations.
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Affirm Investor Relations ir@affirm.com Affirm
Media press@affirm.com Sixth Street
media@sixthstreet.com
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