Aflac Global Investments to acquire stake in Tree Line Capital Partners
Aflac Global Investments, the asset management subsidiary of Aflac, has agreed to acquire a stake in San Francisco-based lower middle-market direct lender, Tree Line Capital Partners. 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 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. 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.” – Bradley E. Dyslin, Aflac’s EVP and Global Chief Investment Officer.
“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. 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.” – Managing Partners Tom Quimby and Jon Schroeder.
