NXT Capital announced 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. The 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.”