Figure Technology Solutions and investment firm Sixth Street have announced a joint venture in which Sixth Street’s Asset Based Finance platform will invest $200 million in equity. The investment, structured to be recycled for future production, aims to enhance liquidity for Figure’s private credit loans. The partnership strengthens Figure Connect, a blockchain-based marketplace that helps loan originators scale their businesses by providing financing options, risk management tools, and automated loan sales. Since its launch in June 2024, Figure Connect has grown significantly, with over 40 percent of Figure’s December loan volume processed through the platform.
The joint venture is expected to bring further liquidity to the platform by securitizing Figure loans, selling bonds to investors, and purchasing loans from originators. It will initially focus on home equity lines of credit before expanding to other non-agency credit assets. Todd Stevens, Chief Capital Officer of Figure, said, “This joint venture between Figure and Sixth Street puts Figure Connect on a trajectory that is ultimately intended to lower costs for lenders and borrowers, similar to how borrowing costs were lowered with the introduction of TBAs in the agency mortgage space. It validates Figure Connect as the largest, most liquid, blockchain-based capital market.” Sixth Street, with more than $100 billion in assets under management, sees this collaboration as an opportunity to support innovation in private credit markets while leveraging its expertise in residential mortgage investing.
