Liberty Mutual Investments (LMI) has prolonged its funding partnership with buy-now-pay-later lender Affirm, with plans to speculate as much as $5bn (£4bn).
The funding agency of the Liberty Mutual Group of Insurance coverage Firms will buy Affirm’s loans on a ahead movement foundation, which means that it agrees to purchase loans earlier than they’ve been originated.
LMI will purchase the loans in quantities of as much as $750m and expects to speculate as much as $5bn over the lifetime of the programme, which ends in June 2027.
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Affirm and LMI first launched into a capital partnership in 2019, adopted by their ahead movement mortgage buy programme in 2023.
The extension marks Affirm’s largest capital dedication so far, having secured a $4bn ahead movement settlement with Sixth Road late final yr.
“LMI’s capability to speculate throughout the capital construction with a single-client focus permits us to flexibly present options and scale to our long-term companions, like Affirm,” stated John Kim, managing director and head of different credit score at LMI. “We look ahead to additional strengthening our partnership as this collaboration expands.”
Affirm’s whole funding capability was $16.8bn as of 30 September 2024, which has grown by greater than 50 per cent during the last two years.
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“With a robust partnership spanning six years, we’re excited to take this subsequent step with LMI,” stated Brooke Main-Reid, chief capital officer at Affirm.
“We’ll proceed to put money into our long-term capital partnerships as we advance our formidable progress plans.”
