Davis Polk is advising Varagon Capital Partners, L.P. on its agreement to form a new strategic partnership with Aflac Global Investments and the extension of its existing strategic partnership with American International Group. Upon the closing of its new partnership, Aflac will make a new multi-year investment commitment of up to $3.0 billion to Varagon to invest in middle market loans. Aflac will also acquire a significant non-controlling minority interest in Varagon. The transaction, which is subject to customary closing conditions and certain regulatory approvals, is expected to close in the first quarter of 2020.
Varagon Capital Partners is an asset manager focused on direct lending to middle market companies. Varagon invests across the capital structure and offers flexible financing solutions to meet the needs of borrowers and private equity sponsors. Aflac Global Investments is responsible for managing the invested assets of Aflac Incorporated’s insurance subsidiaries in Japan and the United States. AIG member companies provide a wide range of property casualty insurance, life insurance, retirement solutions and other financial services to customers in more than 80 countries and jurisdictions.
The Davis Polk corporate team includes partner Michael Davis, counsel Ajay B. Lele and associates Jenny Ge and Dane G. Ferre. The investment management team includes partner Leor Landa, counsel Jennifer Grant Cooper and associate Brantley Hawkins. Partner Jeffrey P. Crandall is providing executive compensation advice. The tax team includes partner David H. Schnabel and associate Elina Khodorkovsky. All members of the Davis Polk team are based in the New York office.