Liberty Mutual, Affirm Announce Upsize of Forward Flow Loan Agreement
Liberty Mutual Investments (LMI), the investment arm of Liberty Mutual Group, has expanded its partnership with Affirm Holdings to purchase installment loans on a forward flow basis. The agreement allows for up to $750 million in outstanding loans and includes plans for LMI to invest up to $5 billion in the program, which will run through June 2027.
Affirm and Liberty Mutual Investments, which manages approximately $100 billion in public and private market assets, initiated a long-term capital partnership in 2019. This was followed by the launch of a forward flow loan purchase program in 2023.
“Liberty Mutual Investments’ 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 Liberty Mutual Investments.
Affirm partners with merchants to offer consumer financing options, utilizing funding channels such as warehouse facilities, forward flow agreements, and asset-backed securitizations. The expanded agreement with Liberty Mutual builds on the December 2024 launch of a partnership with Sixth Street, which could support over $20 billion in consumer loans over three years, marking Affirm’s largest capital commitment to date.
As of September 30, 2024, Affirm’s total funding capacity reached $16.8 billion, reflecting over 50% growth in the past two years. Its funding program includes more than 130 investors, and the company plans to expand capacity across funding channels while strengthening relationships with long-term capital partners.
