Jan 24 (Reuters) - Buy now, pay later lender Affirm

Holdings ( AFRM ) has expanded its capital partnership with

investment firm Liberty Mutual Investments (LMI), the companies

said on Friday.

The expanded partnership will see LMI upsizing its loan

purchasing program with Affirm, including buying loans up to

$750 million, the companies added.

Over time, LMI is expected to invest up to $5 billion in the

program, deepening its partnership with Affirm. The agreement

will provide Affirm with committed capital to fuel its growth.

"We will continue to invest in our long-term capital

partnerships as we advance our ambitious growth plans," Affirm's

Chief Capital Officer Brooke Major-Reid said.

In 2019, Affirm and LMI started their long-term capital

partnership, with the loan purchase program commencing in 2023.

In another development last December, Prudential Financial's ( PRU )

PGIM Fixed Income completed a private purchase of $500

million worth of loans from Affirm.