Affirm Forges $4b Investment Deal With Sixth Street

Affirm (AFRM) forged a $4 cardinal financing business pinch Sixth Street, successful nan latest committedness by a backstage in installments patient into a fintech company.

Affirm shares roseate astir 2% successful intraday trading Friday aft nan announcement.

Sixth Street is putting successful nan money into a conveyance that will bargain Affirm’s loans complete 3 years successful a woody nan companies said is nan largest superior committedness secured by nan buy now, salary later (BNPL) firm.

The finance will successful move springiness Affirm nan expertise to lend much than $20 cardinal successful loans complete nan adjacent 3 years, they said.

Fintech Firms Have Been Tapping Private Credit for Funds

Fintech companies person been tapping nan fast-growing backstage in installments manufacture for costs successful nan past fewer years. Last year, PayPal (PYPL) struck a woody pinch backstage equity patient KKR (KKR) allowing nan private equity patient to purchase nan fintech firm’s BNPL loans successful Europe. 

In October, SoFi Technologies (SOFI) struck a $2 cardinal deal pinch Fortress Capital to turn its individual loans business. 

Affirm rival Klarna, which revenge for a U.S. first nationalist offering (IPO)  last month, sold its U.K. BNPL portfolio to U.S. hedge fund Elliott Investment Management besides successful October, successful a woody it said would money 30 cardinal pounds ($38 billion) successful loans.

Affirm shares person much than doubled successful worth successful nan past six months, underscoring nan explosive maturation of companies successful nan BNPL space.