Affirm's Capital Boost
Affirm and CPP Investments expand capital partnership with $1.7 billion for installment loans.
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Affirm and Canada Pension Plan Investment Board (CPP Investments) have renewed their capital partnership with a fresh 24-month deal worth up to US$2.2 billion, the companies announced on June 4, 2026 Business Wire. The agreement starts at US$1.7 billion and can grow to US$2.2 billion — enough to power roughly US$8 billion in consumer loans over the next two years.
The deal deepens a seven-year relationship. CPP Investments has bought nearly US$14 billion in Affirm assets since 2019 StreetInsider. Affirm's total funding capacity now stands at $28.2 billion, up from $23.3 billion just one year ago.
A Seven-Year Bond Grows Bigger and Deeper
Affirm and CPP Investments first partnered in 2019. Since then, CPP has steadily bought more Affirm installment loans through so-called forward-flow agreements — deals where a buyer purchases loans shortly after Affirm creates them Business Wire. This keeps the loans off Affirm's balance sheet, reducing its risk. An earlier deal in November 2022 crossed the $1 billion mark for the first time.
Affirm's COO Michael Linford called CPP Investments "one of our most valued capital partners since the earliest days of our program" and said the expanded deal "will continue to fuel our growth as we generate quality assets at scale" FT.com. From CPP's side, Managing Director Paras Vira said Affirm has "consistently produced credit performance the fund seeks in a long-term partner" StreetInsider.
Pension Funds and Insurers Rush Into BNPL Lending
This deal fits a broader trend. Large institutions are moving into buy now, pay later (BNPL) — a type of short-term installment loan — because it offers steady returns with short durations. In October 2025, Affirm locked in a similar $1.75 billion annual deal with New York Life PYMNTS.com. Pension funds and insurers are chasing alternatives to volatile bond markets.
Affirm has also cut its borrowing costs sharply. Funding costs dropped by 125 basis points year-over-year in early 2026 AlphaSense. Its
Affirm's Loan Quality Attracts Institutional Confidence
Affirm's appeal to big investors rests on its credit performance. Its
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