Affirm Holdings, Inc. (NASDAQ: AFRM), the payment network that empowers consumers and helps merchants drive growth, and Liberty Mutual Investments (“LMI”), the investment firm of the Liberty Mutual Group of Insurance Companies (“LMIG”), announced the upsize of their forward flow loan purchase program. Over the program term through June of 2027, LMI will purchase Affirm’s installment loans on a forward flow basis, in amounts up to $750 million outstanding.
Over time, LMI expects to invest up to $5 billion in the program.
The program provides an aligned funding partner that is committed to providing capital to increase access to Affirm’s flexible payment options. Affirm and LMI began their long-term capital partnership in 2019, followed by their forward flow loan purchase program in 2023.
“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,” said Brooke Major-Reid, Chief Capital Officer at Affirm. “With a strong partnership spanning six years, we are excited to take this next step with Liberty Mutual Investments. We will continue to invest in our long-term capital partnerships as we advance our ambitious growth plans.”
“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,” said John Kim, managing director and head of Alternative Credit at Liberty Mutual Investments. “We look forward to further strengthening our partnership as this collaboration expands.”
As an industry-leading underwriter, Affirm offers easy-to-use solutions for merchant partners and access to transparent and flexible financing options for consumers, creating attractive risk-adjusted assets.
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.
LMI invests more than $100B of assets globally across an integrated platform on behalf of LMIG.