Prudential Financial and Affirm to Invest Up to $3 Billion Through New Loan Sale Facility

Affirm and Prudential's PGIM have partnered to invest up to $3 billion through a new loan sale facility. The partnership aims to provide financing for consumer loans and support the growth of the financial services industry. Affirm will originate the loans, while PGIM will purchase them through the facility. The investment will help Affirm expand its lending capabilities and support the development of the consumer finance market.

Affirm (NASDAQ: AFRM), a leading payment network empowering consumers and merchants, has partnered with Prudential Financial's PGIM Fixed Income to invest up to $3 billion through a new loan sale facility. This expansion builds on their existing collaboration, which includes PGIM's earlier private purchase of $500 million in Affirm loans in December 2024 [1].

The new facility will allow PGIM to purchase up to $500 million of Affirm loans at any one time over a 36-month period. This revolving pass-through loan sale facility is designed to support Affirm's growth by providing a steady stream of financing for consumer loans. The partnership aims to expand Affirm's lending capabilities and support the development of the consumer finance market [1].

PGIM, with $862 billion in assets under management, is one of the largest global fixed income managers. The company manages a leading asset-based finance platform with over $145 billion in assets under management across public and private securitized credit [1]. This partnership showcases PGIM's ability to find attractive opportunities across public and private markets and deliver value to their partners [1].

Edwin Wilches, co-head of Securitized Products at PGIM Fixed Income, expressed pride in expanding their longstanding collaboration with Affirm. "This agreement is a further testament to our commitment to finding durable sources of risk-adjusted returns for our clients through our selective origination process," he said [1].

Brooke Major-Reid, Chief Capital Officer of Affirm, emphasized the importance of constant dialogue with capital partners. "This first-of-its-kind facility for Affirm and PGIM does exactly that and demonstrates how we can utilize innovative structures to create winning partnerships," she said [1].

Affirm, which generated over $33 billion in gross merchandise volume (GMV) for the last twelve months ending March 31, 2025, has a diverse and durable funding model across multiple channels. With a total funding capacity of $23.3 billion as of March 31, 2025, Affirm has issued 23 asset-backed securitizations totaling $11.5 billion with participation from over 150 unique capital partners [1].

This partnership is part of a broader trend in the financial services industry, where companies are seeking innovative ways to finance growth and support the development of new markets. By providing a steady stream of financing for consumer loans, Affirm and PGIM are helping to drive growth in the consumer finance market.

References:
[1] https://www.marketscreener.com/quote/stock/PRUDENTIAL-FINANCIAL-INC-14113/news/Affirm-and-PGIM-expand-long-term-capital-partnership-to-invest-up-to-3-billion-via-revolving-pass-t-50275684/
[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