AFC Gamma’s Strategic Shift: A $60 Million Tech Sector Commitment

In a move signaling its strategic evolution, specialty finance firm AFC Gamma has announced its first major transaction since completing a significant corporate restructuring. The company revealed it has issued a $60 million senior secured credit facility to STAT Buyer, LLC. This capital injection is earmarked to fund the merger of two specialized providers in the supply-chain technology space.

This deal follows a foundational change in AFC Gamma's corporate identity. Effective January 1, 2026, the company formally converted from a Real Estate Investment Trust (REIT) to a Business Development Company (BDC). This structural shift substantially broadens its investment mandate, permitting direct financing activities well beyond its traditional real estate collateral focus.

To align with the regulatory framework of the Investment Company Act of 1940, the company amended its existing credit agreements in mid-January. A new advisory agreement with AFC Management was also implemented, restructuring management and performance fees. With previous ownership restrictions from its REIT era now removed, management is targeting a wider investor base.

Details of the Landmark Transaction

The financing was executed through AFC Gamma's subsidiary, TCGDL LLC. The $60 million facility will be used to fund an acquisition, facilitate refinancing, and provide working capital for the combined entity.

Should investors sell immediately? Or is it worth buying AFC Gamma?

The transaction supports the merger between STAT Recovery Services and The Moresby Group. The strategic goal of this union is to integrate machine-learning technologies for revenue recovery with specialized procurement negotiation expertise. For AFC Gamma, this represents a deliberate expansion beyond its historical core business segments.

CEO Daniel Neville emphasized that the deal demonstrates the company's capability to provide institutional capital to businesses controlled by investment firms such as Cambridge Capital.

Market Anticipates First Post-Conversion Financials

Investor attention now turns to March 12, 2026. Before the market opens, AFC Gamma is scheduled to release its fourth-quarter and full-year 2025 financial results. This report will be the first comprehensive disclosure since the official completion of the BDC conversion.

Analysts expect the earnings release to provide clarity on operational performance during the transition period. A key area of focus will be the status of the project pipeline identified in late 2025, which holds a potential volume of approximately $350 million. The upcoming figures will also offer the first glimpse into the new cost structure and the financial impact of the updated administrative agreements.