Affirm's Lending Capacity Gets Boost From Sixth Street Investment

Group 1 - Affirm and Sixth Street have established a long-term capital partnership, with Sixth Street committing to invest up to $4 billion in Affirm loans through a three-year forward flow agreement, enabling Affirm to extend up to$20 billion in loans over the next three years [1][2] - The partnership is designed to provide capital-efficient funding to support Affirm's growth plans, leveraging Sixth Street's expertise in asset-based finance and long-term capital [2] - Affirm's total funding capacity reached $16.8 billion as of September 30, having increased by over 50$28 billion in gross merchandise volume in the previous 12 months [3] Group 2 - Affirm claims a significant market position, holding a third of the volume and more than half of the revenue in the U.S. pay-later space [3] - The company possesses a "huge competitive moat" due to the complexities of underwriting, requiring substantial infrastructure to effectively utilize data [4] - Affirm has recently partnered with eight additional merchants to enhance flexible pay-over-time options for consumers [4][5]