InvestorFlow’s Post

Two trendy areas in finance – fintech and private credit — are coming together in a new multi-billion dollar joint venture. Affirm Holdings 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. The deal encompasses a ramp, and the loan sale won't start until 2025, according to a person familiar with the terms.

We’re pleased to announce that Affirm and Sixth Street have entered into a long-term capital partnership. The agreement represents our largest capital commitment to date, as Sixth Street will be able to invest up to $4 billion in purchasing Affirm loans. 🤝 Affirm’s CCO Brooke Major-Reid said: “We are honored to establish this new long-term partnership with Sixth Street as we continue to strengthen and diversify our platform to support our ambitious growth plans with capital efficient funding. Sixth Street’s expertise in asset-based finance, long-term capital and collaborative approach make them an ideal partner for Affirm.” Affirm’s COO Michael Linford said: “Our capital markets expertise is an important point of competitive differentiation, and we believe this partnership with Sixth Street’s world-class investment team reinforces that.” For more info: 👇

"#Lenders that prioritize agility have the unique opportunity to create value in an instant, and that is only bolstered by the flexibility and stability of the right pricing engine. The unfortunate reality is that lenders leveraging legacy engines, whether that PPE is 10+ or 20+ years dated, will by default experience a clunky and cumbersome process to launch new programs or shift strategic direction. Those lenders – and their #loanofficers – are then operating at an incredible disadvantage." Click here to read the deets 👉 https://lnkd.in/gZwRbu3m #alongcamepolly #capitalmarkets #fintech #getmorefromyourppe #getmorein24 #jointherevolution #mortgagetechnology #secondarymarket

Today, I’m proud to share that Affirm and Sixth Street have entered into a new long-term capital partnership. The agreement represents the largest ever capital commitment secured by Affirm and will enable Sixth Street to invest up to $4 billion in purchasing Affirm loans over the next 3 years, allowing us to power up to more than $20B in volume. Over the past several years, I have had a front-row seat as Affirm has scaled to become one of the most impactful fintechs in the world - providing millions of consumers with the ability to pay over time with no fees or junk charges. Our capital markets expertise has been a key driver of our success, yet all the horsepower under the hood can easily be overlooked by the naked eye outside Affirm’s walls. Today’s news marks a giant leap forward for our Capital program and demonstrates the confidence that some of the top global investors have in our vision to make payments more honest and transparent. Congratulations to the entire Capital team – led by Brooke Major-Reid and deal leads Dan Chen, Monica Mehra, Tony Giacin, Yue An, and Jason Shi alongside Ryan Chen and Monica Childs in Capital Legal and Siphelele Jiyane, Kailee Balagia, CPA, and Yuqi L. in Accounting – on today’s news! The journey ahead for Affirm is brighter than ever, and with strategic partners like Sixth Street, I have no doubt that we’ll continue to lead the way in redefining payments and commerce as we know it. https://bit.ly/3ZD7QmW

Wall Street is undergoing a major shift as private credit firms step in where traditional banks once dominated. Deals like Affirm and Sixth Street's $4 billion loan facility and BlackRock’s $12 billion acquisition of HPS Investment Partners, LLC highlight the growing influence of private lenders across the economy. This "de-bankification" trend is reshaping the financial landscape and creating significant opportunities for technology and IT services companies to support this transformation. From building advanced lending platforms and AI-driven risk assessment tools to enabling blockchain-based transparency and RegTech solutions, tech innovation is key to fueling this evolution. With private credit firms expanding their reach, tech providers have a chance to drive the future of lending through automation, scalability, and digital transformation. POSSUMUS Microsoft

https://lnkd.in/eDzFZhmE As of this week, I am freelancing for TipRanks. Here's my first piece on SoFi's recent loan agreement and why it matters. #WallStreet #SOFI #fintech #investing #marketnews #stockmarket

🚀 Exciting News in the Fintech World! 🌐 We are thrilled to report on a major development as SoFi Technologies, Inc. has secured a $2 billion partnership with Fortress Investment Group. This strategic agreement aims to expand SoFi's loan platform business, enhancing personal loan offerings and connecting pre-qualified borrowers to a range of lending partners. 🔗 Dive into the full story here: https://lnkd.in/dnn6MnCG SoFi's CEO, Anthony Noto, and Fortress’s Co-Head of Specialty Finance, Dominick Ruggiero, are at the helm of this impactful collaboration, positioning both companies to meet growing consumer demand for seamless and innovative financial solutions. This partnership underscores the significant role fintech and traditional finance players can have when joining forces to drive growth and efficiency. Kudos to the teams at SoFi and Fortress for setting new benchmarks in the lending sector! 🌟 #FintechNews #SoFi #FortressInvestmentGroup #LoanPlatform #FinancialTechnology #DigitalLending #BusinessGrowth #AnthonyNoto #DominickRuggiero

💳"𝗪𝗲 𝘄𝗶𝗹𝗹 𝗵𝗼𝗽𝗲𝗳𝘂𝗹𝗹𝘆 𝗵𝗮𝘃𝗲 𝗮𝗽𝗽𝗿𝗼𝘃𝗮𝗹 𝗯𝘆 𝘁𝗵𝗲 𝗲𝗻𝗱 𝗼𝗳 𝘁𝗵𝗲 𝘆𝗲𝗮𝗿" said Capital One's EVP, Andres Navarrete, in an August 9th interview with Delaware Business Times. Catch up on the fifth-largest bank merger in U.S. history - Capital One's $35bn acquisition of Discover Financial Services - by reading our article linked below! 🔍📊 #Banking #Finance #MergersAndAcquisitions #CapitalOne #DiscoverFinancialServices #Credit

Explore the impact of Lendermarket 2.0's launch and its significance for investors. In a recent Alternative Credit Investor article, our CEO, Carles Federico, discusses investor feedback and shares insights on our future direction. Stay updated on the latest developments. 🚀 #P2Plending #crowdlending #investing

Fintech lender MONEYME secures $125m funding facility - Capital Brief: B-Corp digital lender MONEYME has secured a $125 million funding facility with alternative asset investment platform iPartners. #finpeform #fintech