Aflac has increased its minority equity stake in middle-market financing provider NXT Capital for about $75 million. Also, Aflac Global Investments, Aflac’s asset management subsidiary, has committed to fund a portfolio of up to $2 billion commercial real estate loans in the U.S. These transactions are part of a partnership formed nearly a year ago between Aflac and NXT to manage a portfolio of mid-market corporate loans.
Chicago, Illinois, January 30, 2018 – NXT Capital announced today that it has expanded its relationship with Aflac Incorporated to include management of a portfolio of commercial real estate mortgage loans. Aflac Global Investments, the asset management subsidiary of Aflac Incorporated, has committed to fund a portfolio of up to $2.0 billion of floating-rate, first mortgage loans for institutional quality, middle market commercial properties throughout the U.S. on behalf of Aflac’s general account, purchasing approximately $1.1 billion of these loans from NXT.
Aflac also increased its minority equity investment in NXT by approximately $75 million to strengthen a partnership that began nearly a year ago with an agreement to manage a portfolio of middle market corporate loans. Today’s announcement reinforces Aflac and NXT’s mutual commitment to cultivating a long-term relationship and the enduring benefits of partnering together in two important private market asset classes.
“NXT Capital is very pleased to further expand our strategic partnership with Aflac which, in addition to middle-market corporate loans, will now include access to our well-established commercial real estate lending platform,” said Robert Radway, NXT Capital’s Chairman and CEO. “We appreciate Aflac’s recognition of NXT’s expertise as an asset manager, our proven, broad-based direct origination capability and rigorous underwriting process for proprietary middle market corporate and commercial real estate loans.”
Radway went on to say, “This is a major win/win for Aflac and NXT Capital’s commercial real estate business. The Aflac program expands NXT’s financing capabilities and overall market competitiveness while providing significant opportunity for growth and delivering a continual flow of high quality 1st mortgage loans to Aflac’s general account.”
Aflac Executive Vice President and Global Chief Investment Officer Eric M. Kirsch commented: “We are pleased to expand our relationship with NXT Capital following the success of our middle market lending program of last year. With this new agreement, NXT will play a key role in managing two floating-rate asset classes that are strategically important to Aflac and our hedged U.S. dollar program for Aflac Japan.”
Executive Vice President and Chief Financial Officer of Aflac Incorporated Frederick J. Crawford added: “Expanding the NXT partnership further solidifies the actions of the global investment platform to find assets generating attractive risk-adjusted net investment income. NXT has proven to be an excellent strategic partner, and we are excited to strengthen our relationship with a leader across both the corporate and real estate middle market lending markets.”
About NXT Capital
NXT Capital is a leading provider of structured financing to the U.S. middle market. Since its formation in 2010, the company has originated over $18 billion in total financing volume spread over 600+ transactions. With approximately $11.4 billion of committed capital at its disposal, NXT provides a full range of structured financing solutions on a direct basis through its Corporate Finance and Real Estate Finance groups. NXT manages capital for third parties through its asset management platform and offers investors proprietary access to primarily first lien senior secured loans that are not broadly traded or otherwise generally available without a loan origination platform. Investment offerings include levered and unlevered funds, separately managed accounts and CLOs. NXT’s investor base includes public and private pension plans, insurance companies, endowments, foundations and other institutional investors. NXT Capital Investment Advisers, LLC, a subsidiary of NXT Capital LLC, is registered with the SEC as an Investment Adviser.
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About Aflac Global Investments
Aflac Global Investments is the asset management division of Aflac Incorporated, with offices in New York and Tokyo and more than 100 professionals managing in excess of $110 billion on behalf of the general account of Aflac Japan and Aflac U.S.