Buy now, pay later company Affirm strikes $4 billion loan deal with private credit firm Sixth Street

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Affirm Holdings is getting its largest-ever capital commitment with a new partnership from private-credit firm Sixth Street.

is getting its largest-ever capital commitment with a new partnership from private-credit firm Sixth Street, which is investing in $4 billion worth of loans over the course of three years.Sixth Street is committing capital upfront for Affirm to underwrite short-term installment loans – between 4- to 6-month timeframes. Once paid back, the capital rolls back into the pot to make more loans — amounting to more than $20 billion that could be extended over the three years of the partnership.

As private credit has exploded in recent years, alternative-asset managers are increasingly looking at non-bank, fintech companies to invest capital. And the fintech firms are opting for what they see as more-efficient sources of financing that can scale up or down based on the demand from their end users.

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