Kirkland & Ellis represented Aflac Global Investments, the asset management subsidiary of Aflac Incorporated, on its partnership with Sound Point Capital Management, LP to create Sound Point Commercial Real Estate Finance, LLC (SPCREF), a new asset management business focused on the real estate loan market. In connection with the investment, Aflac Global Investments has made an initial $1.5 billion allocation to SPCREF, with $500 million of this amount dedicated to providing transitional and other debt financing to support economically distressed communities designated as Qualified Opportunity Zones.
Upon regulatory approval, Aflac will initially hold a 9.9% minority interest in SPCREF, with the ability to grow its ownership stake over time in line with future growth of the new venture.
The team was led by transactional partners Jonathan Benloulou and Michael Reeves and included investment funds associate Michael Lee. The team also included investment funds partners Alpa Patel and Brett Saltzman, tax partner Mike Greenberg and insurance regulatory partner Parimah Hassouri.