Key Takeaways
- • Truist Financial Corp. is exploring a sale of specialty lender Afco Credit Corp., according to people familiar with the matter, as new CEO Mike Lyons moves to offload non-core lending businesses.
- • Afco handles insurance premium financing and holds roughly $6 billion to $7 billion in assets, per the sources cited by Bloomberg.
- • Truist is weighing either an outright sale of Afco or a piecemeal disposal of its assets, with private credit investors expected to be the likely buyers.
- • The move signals a strategic refocus toward core banking operations under Lyons.
Summary
Truist Financial Corp. is exploring a sale of Afco Credit Corp., a specialty lender, as its new Chief Executive Officer Mike Lyons seeks to divest non-core lending businesses and concentrate on banking operations, according to people familiar with the matter cited by Bloomberg. The Charlotte, North Carolina-based bank is working with financial advisers to identify a buyer for Afco, the sources said. The sources asked not to be identified because the details are private.
Afco specializes in insurance premium financing and has between $6 billion and $7 billion in assets, according to the report. Truist is considering two paths: selling the business outright or unloading its underlying assets. One of the people said the assets are expected to attract interest from private credit players, reflecting continued institutional appetite for specialty lending exposures outside the traditional banking system.
The potential transaction fits within Lyons' broader effort to streamline Truist's portfolio. Bloomberg's report does not disclose a timeline, a prospective purchase price, or a confirmed list of bidders. Truist has not publicly commented on the matter in the source material.
Afco specializes in insurance premium financing and has between $6 billion and $7 billion in assets, according to the report. Truist is considering two paths: selling the business outright or unloading its underlying assets. One of the people said the assets are expected to attract interest from private credit players, reflecting continued institutional appetite for specialty lending exposures outside the traditional banking system.
The potential transaction fits within Lyons' broader effort to streamline Truist's portfolio. Bloomberg's report does not disclose a timeline, a prospective purchase price, or a confirmed list of bidders. Truist has not publicly commented on the matter in the source material.
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