Affirm and PGIM Expand Capital Partnership with $3B Loan Facility

Affirm and PGIM Fixed Income have expanded their capital partnership with a new $3B loan facility, allowing PGIM to purchase up to $500M of Affirm loans at any one time over 36 months. This follows PGIM's earlier private purchase of $500M in Affirm loans in December 2022. The partnership demonstrates innovative structures for creating winning partnerships, according to Affirm's Chief Capital Officer Brooke Major-Reid.

Affirm (NASDAQ: AFRM) and PGIM Fixed Income, a Prudential Financial (NYSE: PRU) company, have announced the expansion of their long-term capital partnership with a new $3 billion loan facility. This agreement allows PGIM to purchase up to $500 million of Affirm loans at any one time over a 36-month period. The facility follows PGIM's earlier private purchase of $500 million in Affirm loans in December 2024 and previous investments in Affirm's assets via its asset-backed securitizations.

The partnership is a testament to both companies' commitment to finding durable sources of risk-adjusted returns for their clients. According to Edwin Wilches, co-head of Securitized Products at PGIM Fixed Income, "This innovative pass-through facility showcases our ability to find attractive opportunities across public and private markets and how our access to diverse pools of capital can deliver value to our partners."

Brooke Major-Reid, Chief Capital Officer of Affirm, noted that the facility demonstrates how innovative structures can create winning partnerships. "We are always in constant dialogue with our capital partners to better understand their needs and how we can deliver even more value to them," Major-Reid said.

Affirm, which empowers consumers with a transparent and flexible way to pay over time without late or hidden fees, generated over $33 billion in gross merchandise volume (GMV) for the last twelve months ending March 31, 2025. With a diverse and durable funding model across multiple channels, Affirm's total funding capacity grew to $23.3 billion as of March 31, 2025, marking the ninth consecutive quarter that funding capacity increased.

PGIM Fixed Income, with $862 billion in assets under management as of March 31, 2025, is a global asset manager offering active solutions across all fixed income markets. The company has offices in Newark, N.J., London, Amsterdam, Zurich, Munich, Paris, Singapore, Sydney, Hong Kong, and Tokyo.

References:
[1] https://www.stocktitan.net/news/AFRM/affirm-and-pgim-expand-long-term-capital-partnership-to-invest-up-to-8utfyea6vxui.html
[2] https://www.businesswire.com/news/home/20250618991186/en/Affirm-and-PGIM-expand-long-term-capital-partnership-to-invest-up-to-%243-billion-via-revolving-pass-through-loan-sale-facility
[3] https://www.marketscreener.com/quote/stock/AFFIRM-HOLDINGS-INC-117540803/news/Affirm-and-PGIM-Fixed-Income-Expand-Long-Term-Capital-Partnership-to-Invest-Up-to-3-Billion-Via-Rev-50277269/