Aflac Global Investments (AGI), the asset management arm of Aflac Incorporated, has announced a strategic investment in Tree Line Capital Partners, a leading private credit asset management firm. This move, revealed on May 16, 2024, signifies Aflac’s commitment to strengthening its investment portfolio and leveraging external expertise in the lucrative direct lending space. The deal sees AGI securing a 40% stake in Tree Line Capital Partners, a San Francisco-based firm specializing in providing direct loans to lower middle-market companies.
Founded in 2014 by Managing Partners Tom Quimby and Jon Schroeder, Tree Line Capital Partners has rapidly grown into a significant player in the private credit market. Initially backed by Stone Point Capital funds, the firm currently boasts $2.7 billion in assets under management. Their core focus is direct lending to lower middle-market businesses, and they have an impressive track record, having committed $5.0 billion across more than 360 investments since their inception. Despite this new partnership, Tree Line Capital Partners will maintain its operational independence, with Quimby and Schroeder continuing to lead the business and serve on the board of directors.
Bradley E. Dyslin, Executive Vice President, Global Chief Investment Officer at Aflac Incorporated, emphasized the strategic rationale behind the acquisition. “We are pleased to announce this strategic partnership with Tree Line Capital Partners as we continue to advance our growth strategy for Aflac Global Investments,” Dyslin stated. He further highlighted the benefits of outsourcing asset management capabilities to generate additional value for Aflac and its stakeholders. Dyslin also noted the strong alignment between Tree Line Capital Partners‘ disciplined credit underwriting approach and Aflac’s core investment principles. The partnership provides Aflac with valuable expertise in middle market direct lending, a strategically important asset class within their $100 billion investment portfolio.
Tom Quimby and Jon Schroeder, Managing Partners at Tree Line Capital Partners, also expressed enthusiasm about the partnership. “The partnership between Aflac Global Investments and Tree Line Capital Partners 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,” they jointly commented. They believe this strategic alliance positions Tree Line Capital Partners for further expansion, enabling them to enhance their offerings to investors, sponsors, and borrowers. In today’s financial landscape, strategic partnerships are crucial for private credit managers, and Tree Line Capital Partners views this collaboration with Aflac Global Investments as a pivotal step in their platform’s growth and development. This deal underscores the increasing importance of private credit and the strategic value of specialized asset managers like Tree Line Capital Partners in institutional investment portfolios.
