Aflac Global Investments (GI), the asset management subsidiary of Aflac, is partnering with Sound Point Capital Management (Sound Point) to create a business focused on the real estate loan market.
Aflac GI has made an initial $1.5bn allocation to the newly launched Sound Point Commercial Real Estate Finance, with $500m of this dedicated to providing transitional and other debt financing to support economically distressed communities.
Upon regulatory approval, Aflac will hold a 9.9% minority interest with the ability to grow its stake over time.
“Transitional real estate loans are a strategically important part of our investment portfolio, offering attractive returns in a high-quality asset class,” Aflac’s global chief investment officer Eric Kirsch said.