AIG American International Group Inc

By Chris Wack

Aflac Global Investments, the asset management subsidiary of Aflac Inc. (AFL), said Wednesday it is buying a significant non-controlling minority interest in direct lending asset manager Varagon Capital Partners L.P.

Aflac Global Investments also said it is making a multiyear commitment to build a portfolio of up to $3 billion of middle market loans on behalf of Aflac Japan and Aflac U.S.

Aflac said the transaction doesn't have a material impact on its 2020 capital deployment plans or overall capital and liquidity position and is expected to close in the first quarter of 2020.

Varagon Capital said it is extending its existing strategic partnership with American International Group (AIG).

Aflac will acquire the interests in Varagon currently held by certain former and current partners and affiliates of Oak Hill Capital Management. The transaction won't reduce ownership of Varagon by management or AIG, and upon closing, Aflac and AIG will hold equal ownership stakes.

Varagon said it will continue to operate as an independent company with no changes to its strategy, investment philosophy, management team, or day-to-day operations.

Write to Chris Wack at chris.wack@wsj.com

(END) Dow Jones Newswires

January 08, 2020 06:29 ET (11:29 GMT)

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