Key Takeaways
- • Truist Financial Corp. is exploring a sale of specialty lender Afco Credit Corp., according to people familiar with the matter reported by Bloomberg.
- • Afco handles insurance premium financing and has $6 billion to $7 billion in assets.
- • The sale is part of new CEO Mike Lyons' effort to divest non-core lending businesses and sharpen focus on banking operations.
- • Truist is weighing either an outright sale of Afco or a disposal of its individual assets, with private credit players expected to show interest.
Summary
Truist Financial Corp. is exploring a sale of specialty lender Afco Credit Corp., as new Chief Executive Officer Mike Lyons moves to offload non-core lending businesses and concentrate the Charlotte, North Carolina-based bank on its core banking operations, according to people familiar with the matter cited by Bloomberg.
The bank has engaged financial advisers to seek a buyer for Afco, a business that provides insurance premium financing and holds between $6 billion and $7 billion in assets, the people said. The sources asked not to be identified because the details are private.
Truist is considering two paths: selling Afco outright or unloading its assets separately. One of the people said the assets are expected to attract interest from private credit players, a signal that non-bank lenders with capital to deploy in specialty lending niches are likely to be active bidders if the process advances.
The people did not indicate a timeline for the process, and no transaction has been announced. The exploration reflects a broader portfolio review under Lyons, who is refocusing the regional bank on its deposit-taking and traditional banking franchise.
The bank has engaged financial advisers to seek a buyer for Afco, a business that provides insurance premium financing and holds between $6 billion and $7 billion in assets, the people said. The sources asked not to be identified because the details are private.
Truist is considering two paths: selling Afco outright or unloading its assets separately. One of the people said the assets are expected to attract interest from private credit players, a signal that non-bank lenders with capital to deploy in specialty lending niches are likely to be active bidders if the process advances.
The people did not indicate a timeline for the process, and no transaction has been announced. The exploration reflects a broader portfolio review under Lyons, who is refocusing the regional bank on its deposit-taking and traditional banking franchise.
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