Affirm Forges $4B Investment Deal With Sixth Street | Global News Avenue

confirm(AFRM) has entered into a $4 billion financing partnership with Sixth Street, the latest commitment from a private lender to transform itself into a fintech company.

Affirm shares rose about 2% intraday Friday after the news was announced.

Sixth Street is putting the money into a vehicle that will buy Affirm’s loans over three years, in what the companies said is the largest capital commitment the company has ever received. Buy now, pay later (BNPL) company.

The investment will give Affirm the ability to lend more than $20 billion over the next three years, they said.

Fintech companies have been tapping private credit to raise capital

Over the past few years, fintech companies have been tapping into the fast-growing private credit industry to secure funding. Last year, PayPal (PYPL) reaches an agreement with private equity firm KKR (KKR)allow private equity firmly Buy BNPL loans from fintech companies in Europe.

In October, SoFi Technology (Sophie) hit $2 billion deal Partnered with Fortress Capital to grow its personal lending business.

Confirms rival Klarna has filed for U.S. initial public offering (IPO) last monthsells its UK BNPL portfolio to the US hedge fund Elliott Investment Management also struck a deal in October that it said would fund 30 billion pounds ($38 billion) of loans.

Affirm shares have more than doubled in the past six months, highlighting explosive growth Number of companies in the BNPL space.