Affirm Secures $4B Loan from Sixth Street to Expand Lending

Private investment group Sixth Street is investing $4 billion in a vehicle to purchase loans from US fintech Affirm, enabling Affirm to issue up to $20 billion in new consumer loans over the next three years. This partnership reflects a growing trend where private credit funds collaborate with consumer credit providers to offload debt and free up lending capacity. The deal is part of a broader industry movement, with firms like SoFi and Klarna also engaging in similar agreements to manage risk and expand lending capabilities amid economic challenges.