Varagon Capital Partners’ Partnership with Aflac Global Investments and AIG

Davis Polk advised 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. Debevoise & Plimpton LLP advised Aflac Global Investments.

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 included partner Michael Davis (Picture), counsel Ajay B. Lele and associates Jenny Ge and Dane G. Ferre. The investment management team included partner Leor Landa, counsel Jennifer Grant Cooper and associate Brantley Hawkins. Partner Jeffrey P. Crandall provided executive compensation advice. The tax team includes partner David H. Schnabel and associate Elina Khodorkovsky.

The Debevoise team was led by M&A partner William Regner and includes M&A associates Spencer Gilbert and Thomas Lopez, investment management partner Kenneth Berman and associate Kevin Shin and tax partner Rafael Kariyev and associate Robert Nelson-Sullivan.

Involved fees earner: Jeffrey Crandall – Davis Polk & Wardwell; Michael Davis – Davis Polk & Wardwell; Dane Ferré – Davis Polk & Wardwell; Jenny Ge – Davis Polk & Wardwell; Jennifer Grant Cooper – Davis Polk & Wardwell; Brantley Hawkins – Davis Polk & Wardwell; Elina Khodorkovsky – Davis Polk & Wardwell; Leor Landa – Davis Polk & Wardwell; Ajay Lele – Davis Polk & Wardwell; David Schnabel – Davis Polk & Wardwell; Kenneth Berman – Debevoise & Plimpton; Spencer Gilbert – Debevoise & Plimpton; Rafael Kariyev – Debevoise & Plimpton; Thomas Lopez – Debevoise & Plimpton; Robert Nelson-Sullivan – Debevoise & Plimpton; William Regner – Debevoise & Plimpton; Kevin Shin – Debevoise & Plimpton;

Law Firms: Davis Polk & Wardwell; Debevoise & Plimpton;

Clients: Aflac Global Investments; Varagon Capital Partners;

Author: Ambrogio Visconti