CPP Investments Expands Partnership With Affirm, Invests in Korea's Hospitality Sector
TORONTO — The Canada Pension Plan Investment Board has signed a deal to renew and expand its partnership with buy-now-pay-later lender Affirm.
Under the two-year agreement, CPP Investments will commit US$1.7 billion to buy Affirm instalment loans.
It also has the ability to increase the commitment to US$2.2 billion.
CPP Investments has purchased nearly US$14 billion in Affirm assets since 2019 through forward-flow agreements and asset-backed securitizations.
Paras Vira, head of Americas structured credit at CPP Investments, says Affirm has consistently produced the kind of credit performance the fund looks for in a long-term partner.
CPP Investments invests the money not needed to fund current Canada Pension Plan benefits.
Earlier today, CPP Investments announced it will renew and expand its capital partnership with Affirm:
SAN FRANCISCO, CA & TORONTO, ON — June 4, 2026 — Affirm (NASDAQ: AFRM) and Canada Pension Plan Investment Board (“CPP Investments”), through subsidiaries of CPPIB Credit Investments Inc., today announced a renewed and expanded forward-flow agreement. Under the 24-month agreement, CPP Investments will commit US$1.7 billion to purchasing Affirm installment loans, with the ability to increase the commitment to US$2.2 billion.
The agreement is expected to support up to approximately US$8 billion in consumer loan volume over its two-year term and builds on a longstanding relationship. Since 2019, CPP Investments has purchased nearly US$14 billion in Affirm assets through forward-flow agreements and asset-backed securitizations. This investment will help power Affirm’s growing network of consumers and merchants.
Affirm offers consumers honest, transparent payment options at checkout and funds its loans through a diverse network of capital partners. Nearly 27 million active consumers use Affirm to pay over time on terms they can see and understand, with no late or hidden fees. Over the last 12 months ending March 31, 2026, Affirm delivered US$46 billion in gross merchandise volume (GMV).
“CPP Investments has been one of our most valued capital partners since the earliest days of our program, and this renewal reflects the trust and track record we’ve built together,” said Michael Linford, Chief Operating Officer of Affirm. “We are grateful to have deep partnerships with some of the world’s most sophisticated, stable investors, including CPP Investments, and this expanded relationship will continue to fuel our growth as we generate quality assets at scale.”
“Affirm has established a leading position in a large and growing segment of consumer finance by offering transparent payment solutions that resonate with both consumers and merchants,” said Paras Vira, Managing Director, Head of Americas Structured Credit at CPP Investments. “The company has consistently produced the kind of credit performance we look for in a long-term partner, and we are pleased to renew and expand our commitment as we aim to generate attractive returns for the CPP Fund in the interests of CPP contributors and beneficiaries.”
Affirm maintains a durable and resilient funding model across multiple channels, including warehouse facilities, forward-flow agreements, and asset-backed securitizations. As of March 31, 2026, Affirm’s total funding capacity had grown to US$28.2 billion, supported by a diverse group of long-term capital partners across institution types.
About Affirm
Affirm’s mission is to deliver honest financial products that improve lives. By building a new kind of payment network—one based on trust, transparency, and putting people first—we empower millions of consumers to spend and save responsibly, and give thousands of businesses the tools to fuel growth. Unlike most credit cards and other pay-over-time options, we never charge any late or hidden fees. Follow Affirm on social media: LinkedIn | Instagram | Facebook | X.
About CPP Investments
Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Canada Pension Plan Fund in the best interests of the more than 22 million contributors and beneficiaries. In order to build diversified portfolios of assets, we make investments around the world in public equities, private equities, real estate, infrastructure and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Mumbai, New York City, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At March 31, 2026, the Fund totalled C$793.3 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Instagram or on X @CPPInvestments.
Affirm (NASDAQ: AFRM) is a company I know well as I've seen their CEO, Max Levchin, plenty of times on CNBC (see below) discussing the company and what it does.
Levchin is super sharp, a great communicator and he has done a great job steering this company and partnering up with the right organizations, like CPP Investments to sell the instalment loans.
On this deal specifically, Michael Linford, Chief Operating Officer of Affirm, sums it up well: “We are grateful to have deep partnerships with some of the world’s most sophisticated, stable investors, including CPP Investments, and this expanded relationship will continue to fuel our growth as we generate quality assets at scale.”
And Paras Vira, Managing Director, Head of Americas Structured Credit at CPP Investments also explains why this partnership is a win-win: “Affirm has established a leading position in a large and growing segment of consumer finance by offering transparent payment solutions that resonate with both consumers and merchants. The company has consistently produced the kind of credit performance we look for in a long-term partner, and we are pleased to renew and expand our commitment as we aim to generate attractive returns for the CPP Fund in the interests of CPP contributors and beneficiaries.”
I also like Affirm's stock here, but that has nothing to do with CPP Investments' latest deal, just my quick chart analysis:
In other news, CPP Investments recently announced it is partnering up with BlueCove to enter Korea's hospitality sector:
SEOUL, South Korea (June 2, 2026) – Canada Pension Plan Investment Board (CPP Investments) and BlueCove Investment (BlueCove), a Korean hospitality‑focused asset manager, today announced a KRW 500 billion (C$474 million) hospitality partnership. CPP Investments will hold a 95% interest in the venture, with BlueCove owning the remaining 5%.
This marks CPP Investments’ first direct investment in Korea’s hospitality sector. The partnership, working closely with established global hotel operators, will be focused on acquiring and repositioning hotel assets across Seoul. As part of its initial pipeline, the venture plans to pursue two projects in Seoul’s tourist hubs. CPP Investments has committed up to KRW 119 billion (C$112 million) to seed the venture’s initial projects.
“Korea represents a compelling next step in CPP Investments’ hospitality strategy in the Asia Pacific region, building on our recent hospitality investment in Japan,” said Gilles Chow, Head of Real Estate, Asia Pacific at CPP Investments. “Korea’s hospitality market is supported by strong domestic demand and growing inbound tourism. Together, these dynamics position the partnership to capture the sector’s continued growth and deliver attractive long‑term returns for the CPP Fund.”
“We see strong momentum in Korea’s hospitality market. By bringing together CPP Investments’ global capital and insights and BlueCove’s on-the-ground expertise, we are well positioned to optimize both existing and new hospitality assets across the country. Together, we look forward to building a portfolio that delivers lasting value,” said Esby Kim, CEO of BlueCove Investment.
About CPP Investments
Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Canada Pension Plan Fund in the best interest of the more than 22 million contributors and beneficiaries. In order to build diversified portfolios of assets, we make investments around the world in public equities, private equities, real estate, infrastructure and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Mumbai, New York City, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At March 31, 2026, the Fund totaled C$793.3 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Instagram or on X @CPPInvestments.
About BlueCove Investment
BlueCove Investment is a Korea-based hospitality-specialist asset manager. Founded in 2019, the firm has developed deep expertise across Korea’s premier hotel market, with a portfolio spanning Grand Hyatt Seoul, Grand Josun Busan and Parnass Hotel Jeju. BlueCove partners with leading domestic and international institutional investors to acquire, convert and reposition hospitality assets in prime Korean locations. For more information, please visit www.bluecoveinvestment.com.
I don't know a thing about Korea's hospitality sector but my brother has visited Japan twice (once for a medical conference and once with his family) and loved it.
I'm pretty sure he'd love to visit South Korea too as do many others across the world.
Below, Affirm CEO Max Levchin joins 'Mad Money' host Jim Cramer to talk quarterly results, the state of the U.S. consumer, and more (three weeks ago).
Levchin also appeared on 'Squawk on the Street' three months ago after earnings to discuss earnings, the impact of AI, and more. Listen carefully to what he says about their capital partners that fund the loans and how they're not worried about Anthropic moving into the space.
A year ago, Levchin joined 'Closing Bell Overtime' to discuss competition with Klarna, which partnered with Walmart back then.
Lastly, South Korea is located in East Asia, on the southern half of the Korean Peninsula. The country packs a lot of diversity into a manageable size, mixing granite peaks, lush national parks, and serene coastlines. Thanks to a reliable public transportation system, it’s easy to transition from modern megacities to traditional folk villages and ancient historical sites. This cultural heritage is complemented by a unique food scene and a vibrant nightlife.
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