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Varagon Capital In New Partnership With Aflac, Expands Partnership With AIG

Asset manager Varagon Capital Partners, L.P. announced Wednesday that it has entered into a definitive agreement to form a new strategic partnership with Aflac Inc.'s (AFL) insurance subsidiary Aflac Global Investments and is extending its existing strategic partnership with insurer American International Group, Inc. (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 its strategic growth objectives.

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

Upon closing of the 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 noncontrolling minority interest in Varagon, creating a mutually-beneficial partnership and demonstrating a commitment to a long-term relationship.

Aflac will acquire the interests in Varagon currently held by certain former and current partners and affiliates of Oak Hill Capital Management.

The transaction 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.

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

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