Aflac agrees to buy 40% stake in private-credit shop Tree Line Capital (NYSE:AFL)
Summary
Aflac Global Investments, the asset management unit of insurance giant Aflac Inc. (NYSE:AFL), has agreed to buy a 40% stake in Tree Line Capital Partners, a private-credit firm specializing in direct lending to the lower middle market, it said on Thursday.With this deal, Aflac (AFL) is pushing into the fast-growing private-credit market, an alternative way for businesses to raise capital from nonbank lenders. Tree Line currently manages $2.7B in assets. Since inception, it has committed $5.0B in over 360 investments.In addition to the 40% stake, Aflac (AFL) said its making a multiyear commitment to allocate a portion of its annual investable cashflow to San Francisco, California-based Tree Line. "We are pleased to partner with them and gain their expertise in middle market direct lending, which remains a strategically important asset class for our $100 billion investment portfolio," said Aflac Inc. Executive Vice President, Global Chief Investment Officer Bradley Dyslin.