Varagon Capital Partners has formed a new partnership with Aflac Global Investments and extended its existing strategic partnership with American International Group.
Aflac has committed up to $3bn in multi-year investment partnership with Varagon to invest in middle market loans.
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Under the deal, Aflac will also acquire a non-controlling minority interest in Varagon and stake presently held by certain former and current partners and affiliates of Oak Hill Capital Management.
Varagon CEO Walter Owens said: “We are excited to welcome Aflac as a new partner and to continue our strategic relationship with AIG.
“These long-term commitments from two world-class insurers provide access to substantial capital, enhance Varagon’s capabilities to serve investors and borrowers, and accelerate the execution of our strategic growth objectives.
“We appreciate Aflac’s recognition of Varagon’s capabilities as a leading middle market asset manager and we look forward to a successful partnership.”
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By GlobalDataThe deal will not reduce ownership of Varagon by management or AIG, and upon closing, Aflac and AIG will hold equal ownership stakes.
Varagon will continue to operate as an independent company with no changes to its strategy, investment philosophy, management team, or day-to-day operations.
AIG Investments CIO Geoffrey Cornell said: “As a long-term investor with a focus on credit discipline, we see an attractive opportunity in middle market credit and are pleased to continue our partnership with the Varagon team.
“We are proud to have been an early backer of Varagon. We are looking forward to Aflac joining our strategic partnership to jointly support Varagon’s continued growth.”
The deal is expected to be completed in the first quarter of 2020. It is subject to customary closing conditions and certain regulatory approvals.
