NEW YORK–() – Varagon Capital Partners, LP (“Varagon”), a leading direct lender to mid-market companies, today announced that it has entered into a definitive agreement to form a new strategic partnership with Aflac Global Investments (“Aflac ”) And is extending its existing strategic partnership with American International Group (“ AIG ”).

Upon closing of the new partnership, Aflac will make a new multi-year investment commitment of up to $ 3.0 billion in Varagon to invest in middle market loans. Aflac will also acquire a significant non-controlling minority stake in Varagon, thereby creating a mutually beneficial partnership and demonstrating its commitment to a long-term relationship.

Aflac will acquire the interests in Varagon currently held by certain former and current partners and subsidiaries of Oak Hill Capital Management. The transaction will not reduce the ownership of Varagon by management or AIG, and at closing, Aflac and AIG will hold equal shares. Varagon will continue to operate as an independent company with no changes in its strategy, investment philosophy, management team or day-to-day operations.

AIG, which has been a benchmark investor and client of Varagon since 2014, will continue to support the growth of the platform.

Walter Owens, CEO of Varagon, said: “We are delighted 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 ability to serve investors and borrowers, and accelerate the achievement of our strategic growth objectives. We appreciate Aflac’s recognition of Varagon’s capabilities as a leading mid-market asset manager and look forward to a successful partnership.

Eric M. Kirsch, Executive Vice President of Aflac Incorporated, Global Chief Investment Officer and President of Aflac Global Investments, said: “Mid-market credit is a strategically important asset class for Aflac and we are delighted to partner with Varagon. Varagon’s rigorous investment underwriting process and proven origination capabilities align directly with Aflac’s strategy of partnering with high quality asset managers.

Geoffrey Cornell, Deputy Director of Investments at AIG Investments, added: “As a long-term, disciplined credit investor, we see an exciting opportunity in mid-market credit and are delighted to continue our partnership with the Varagon team. We are proud to have been one of the first contributors to Varagon. We look forward to seeing Aflac join our strategic partnership to jointly support Varagon’s continued growth. ”

The transaction, which is subject to customary closing conditions and certain regulatory approvals, is expected to close in the first quarter of 2020.

Wells Fargo Securities served as financial advisor and Davis Polk & Wardwell LLP provided legal representation to Varagon; Rothschild & Co acted as financial advisor and Debevoise & Plimpton LLP provided legal representation to Aflac; and Cadwalader, Wickersham & Taft LLP provided legal representation to AIG.

About Varagon Capital Partners

Varagon Capital Partners is an asset manager focused on direct lending to mid-market companies. Varagon invests throughout the capital structure and offers flexible financing solutions to meet the needs of borrowers and private equity sponsors. Varagon manages funds and accounts on behalf of institutional investors who seek exposure to high quality loans sourced directly from the middle market. As of December 31, 2019, Varagon had made more than $ 14.5 billion in financing commitments with more than 180 companies. For more information on Varagon, visit www.varagon.com.

About Aflac Global Investments

Aflac Global Investments refers to Aflac Asset Management LLC and Aflac Asset Management Japan Ltd., which are the asset management subsidiaries of Aflac Incorporated. Aflac Global Investments is responsible for managing the invested assets of Aflac Incorporated’s insurance subsidiaries in Japan and the United States. At the end of September 2019, Aflac Global Investments managed more than $ 120 billion in general account assets and had 125 investment and support professionals working in its offices in New York and Tokyo.

About Aflac Incorporated

Aflac Incorporated (NYSE: AFL) is a Fortune 500 company, which helps protect more than 50 million people through its subsidiaries in Japan and the United States, where it is a leading supplemental insurer by paying quickly in cash when policyholders become ill or injured. For more than six decades, the insurance policies of Aflac Incorporated’s subsidiaries have given policyholders the opportunity to focus on recovery, not financial stress. Aflac Life Insurance Japan is the leading provider of medical and cancer insurance in Japan where it insures 1 in 4 households. Thanks to its pioneering One Day PaySM initiative in the United States, for eligible claims, Aflac can process, approve and send electronically funds to applicants for quick access to cash in just one business day. For 13 consecutive years, Aflac has been recognized by Ethisphere as one of the most ethical companies in the world. Fortune magazine has recognized Aflac as one of the Top 100 Companies to Work for in America for 20 consecutive years and in 2019 Fortune included Aflac on its list of the world’s most admired companies for the 18th time. To learn more about One Day PaySM and how to get help with expenses that health insurance doesn’t cover, get to know us at aflac.com. Aflac here refers to American Family Life Assurance Company of Columbus and American Family Life Assurance Company of New York.

About AIG

American International Group, Inc. (NYSE: AIG) is a leading global insurance organization. Building on 100 years of experience, AIG member companies today offer a wide range of property and casualty insurance, life insurance, retirement solutions and other financial services to clients in more than 80 countries and jurisdictions. These diverse offerings include products and services that help businesses and individuals protect their assets, manage risk and keep their retirement secure. Additional information about AIG is available at www.aig.com. References to additional information about AIG have been provided for convenience, and information on this website is not incorporated by reference in this press release.

FORWARD-LOOKING INFORMATION

The Private Securities Litigation Reform Act of 1995 provides for a “safe harbor” to encourage companies to provide forward-looking information, provided that such disclosures are identified as forward-looking and are accompanied by meaningful cautions identifying important factors that could cause actual results to differ materially from those included in forward-looking statements. This document contains cautions identifying important factors that could cause actual results to differ materially from those projected in this document, as well as in any other statements made by company officials in communications with the financial community and contained in documents filed with the Securities and Exchange Commission (SEC). Forward-looking statements are not based on historical information and relate to future operations, strategies, financial results or other developments. In addition, forward-looking information is subject to numerous assumptions, risks and uncertainties. In particular, statements containing words such as “expect”, “anticipate”, “believe”, “objective”, “objective”, “may”, “should”, “estimate”, “intend” “,” Projects “,” will, “” assume “,” potential “,” target “,” outlook “or similar words as well as specific projections of future results, are generally qualified as prospective. Varagon assumes no obligation update these forward-looking statements.