Affirm Holdings Inc. has secured a significant capital partnership with Sixth Street, a private credit firm, which will invest up to $4 billion in consumer installment loans originated by Affirm over the next three years. This deal, marking Affirm's largest capital commitment to date, is set to enable the buy-now, pay-later lender to fund over $20 billion in loans. The partnership involves Sixth Street purchasing loans from Affirm, which will be used to finance consumer purchases on platforms like Amazon and Apple. The arrangement is part of a broader trend where fintech companies seek more efficient financing models beyond traditional banking, including warehouse facilities, asset-backed securitizations, and forward flow agreements. This partnership not only provides Affirm with the firepower to expand its lending capacity but also reflects the growing intersection of fintech and private credit markets. Affirm's stock price increased by 7% following the announcement, and the company has seen a 130% growth in funding capacity over the last three years, with gross merchandise volume growing by 34% in the first nine months of the year. Affirm offers loans with APRs between 0% and 36%, and its delinquency rate for loans over 30 days past due was 2.8% as of September.