NEW
YORK, May 16, 2024 /PRNewswire/ -- Aflac
Global Investments (AGI), the asset management subsidiary of Aflac
Incorporated, announced today that it has agreed to acquire a stake
in San Francisco-based lower
middle-market direct lender, Tree Line Capital Partners (Tree
Line). The structure of the deal provides AGI with a 40% interest
in the company upon closing. In addition, Aflac is making a
multiyear commitment to allocate a portion of its annual investable
cashflow to Tree Line.
Tree Line was founded in 2014 by Managing Partners Tom Quimby
and Jon Schroeder with initial
backing by funds managed by Stone Point Capital. The firm currently
manages $2.7 billion in assets and
specializes in direct lending to the lower middle market. Tree Line
has committed $5.0 billion in over
360 investments since inception. Tree Line will retain investment
and operational autonomy with Quimby and Schroeder continuing to
manage the business and serving on its board of
directors.
"We are pleased to announce this strategic partnership with Tree
Line as we continue to advance our growth strategy for Aflac Global
Investments and leverage our outsourcing capabilities to generate
additional value for Aflac and our stakeholders," Aflac
Incorporated Executive Vice President, Global Chief Investment
Officer Bradley E. Dyslin said.
"Tree Line's disciplined approach to credit underwriting aligns
strongly with our core investment principles. 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."
"The partnership between Aflac Global Investments and Tree Line
will accelerate our firm's growth in direct lending and build upon
the great reputation and culture we have established over the last
10 years," said Managing Partners Tom Quimby and Jon Schroeder. "Tree Line has enjoyed consistent
growth since its inception and is now in an even stronger position
to expand and deliver greater capabilities to our investors,
sponsors and borrowers. Strategic partnerships are particularly
important to private credit managers in today's environment, and we
could not be more excited to partner and grow our platform with
Aflac Global Investments."
"Tree Line has built a strong platform with an established
long-term track record and an experienced leadership team," Aflac
Global Investments Managing Director, Global Head of Private Debt
and Strategic Partnerships Catherine Cole said. "We are thrilled to
partner with them and to leverage our capital to support growth
opportunities for the firm."
Evercore served as exclusive financial advisor to Aflac, and
Debevoise & Plimpton LLP served as legal counsel. Berkshire
Global Advisors served as exclusive financial advisor to Tree Line
Capital Partners, and Kramer Levin
Naftalis & Frankel LLP and Paul Hastings LLP served as
legal counsel. The closing of the transaction is subject to the
receipt of all regulatory approvals.
About Aflac Incorporated
Aflac Incorporated (NYSE: AFL), a Fortune 500 company, has
helped provide financial protection and peace of mind for more than
68 years to millions of policyholders and customers through its
subsidiaries in the U.S. and Japan. In the U.S., Aflac is the No. 1
provider of supplemental health insurance products.1 In
Japan, Aflac Life Insurance Japan
is the leading provider of cancer and medical insurance in terms of
policies in force. The company takes pride in being there for its
policyholders when they need us most, as well as being included in
the World's Most Ethical Companies by Ethisphere for 18 consecutive
years (2024), Fortune's World's Most Admired Companies for 23 years
(2024) and Bloomberg's Gender-Equality Index for the fourth
consecutive year (2023). In addition, the company became a
signatory of the Principles for Responsible Investment (PRI) in
2021 and has been included in the Dow Jones Sustainability North
America Index (2023) for 10 years. To find out how to get help with
expenses health insurance doesn't cover, get to know us at
aflac.com or aflac.com/espanol. Investors may learn more about
Aflac Incorporated and its commitment to corporate social
responsibility and sustainability at investors.aflac.com under
"Sustainability."
1 LIMRA 2022 U.S. Supplemental Health Insurance Total
Market Report
About Aflac Global Investments
Aflac Global Investments refers to an affiliate of Aflac Asset
Management LLC, Aflac Asset Management Japan Ltd., which are the
asset management subsidiaries of Aflac Incorporated. Aflac Global
Investments division is responsible for managing the invested
assets of Aflac Incorporated's insurance subsidiaries
in Japan and the U.S. As of December 2023, Aflac
Global Investments managed nearly $100 billion in general
account assets and had more than 150 investment and support
professionals who work at its offices in New
York and Tokyo.
About Tree Line Capital Partners
Tree Line Capital Partners is a private credit asset manager
focused on direct lending to lower middle market
businesses. The firm provides first lien term loans,
unitranche term loans and equity co-investments to lower middle
market borrowers with between $5M-$30M of EBITDA
in North America in transaction
sizes up to $150M. As of
May 2024, Tree Line manages
$2.7B in investable
capital. Since its inception in 2014, the firm has provided
approximately $5.0 billion in
commitments to over 360 transactions for acquisitions,
recapitalizations, refinancings, expansion projects and other
growth capital needs. Tree Line's team has extensive direct lending
experience spanning multiple economic cycles and has generated
significant repeat investment opportunities from the private equity
community through reliable execution coupled with a direct
relationship approach. Tree Line is headquartered in San Francisco with locations in New York, Austin and Los
Angeles.
Visit www.treelinecp.com for additional detail.
Aflac | Aflac NY | WWHQ | 1932 Wynnton Road
| Columbus, GA 31999.
Media contact – Aflac - Jon A. Sullivan, 706-763-4813
or Jsullivan@aflac.com
Analyst and investor contact – David A. Young,
706-596-3264, 800-235-2667 or dyoung@aflac.com
Media contact – Tree Line Capital - Tom
Quimby, 415.795.7576 or tom@treelinecp.com
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