Affirm Holdings Inc. Sees 4% Increase in Shares

Shares of Affirm Holdings, Inc. (NASDAQ: AFRM) rose 4% following the announcement of a major capital partnership with the global investment firm Sixth Street. This collaboration will provide Affirm with up to $4 billion for its loans, which is the largest capital commitment the payment network company has received to date.

The agreement spans three years and operates as a forward flow arrangement designed to enhance Affirm's ability to offer more loans.

The partnership with Sixth Street, which runs an Asset Based Finance platform, is expected to give Affirm additional off-balance sheet funding. This financial structure is projected to allow Affirm to potentially issue over $20 billion in loans within the next three years, supporting the company’s goal to expand its payment network.

Brooke Major-Reid, Affirm's Chief Capital Officer, expressed pride in this partnership, citing Sixth Street’s expertise as a key factor in providing effective funding to aid Affirm’s growth objectives. Meanwhile, Michael Dryden, Partner and Head of Asset Based Finance at Sixth Street, recognized the value of Affirm's financing solutions and shared optimism about the potential of their partnership.

Michael Linford, Chief Operating Officer of Affirm, stated that the partnership signifies a critical milestone in the company’s growth strategy and asset generation, emphasizing that Affirm’s knowledge in capital markets will enhance their competitive advantage.

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