Liberty Mutual Investments (LMI) has extended its funding partnership with buy-now-pay-later lender Affirm, with plans to invest up to $5bn (£4bn).
The investment firm of the Liberty Mutual Group of Insurance Companies will purchase Affirm’s loans on a forward flow basis, meaning that it agrees to buy loans before they have been originated.
LMI will buy the loans in amounts of up to $750m and expects to invest up to $5bn over the lifetime of the programme, which ends in June 2027.
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Affirm and LMI first embarked on a capital partnership in 2019, followed by their forward flow loan purchase programme in 2023.
The extension marks Affirm’s largest capital commitment to date, having secured a $4bn forward flow agreement with Sixth Street late last year.
“LMI’s 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 LMI. “We look forward to further strengthening our partnership as this collaboration expands.”
Affirm’s total funding capacity was $16.8bn as of 30 September 2024, which has grown by more than 50 per cent over the last two years.
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“With a strong partnership spanning six years, we are excited to take this next step with LMI,” said Brooke Major-Reid, chief capital officer at Affirm.
“We will continue to invest in our long-term capital partnerships as we advance our ambitious growth plans.”
