Aflac Global Investments Acquires Stake in Tree Line Capital Partners

Aflac Global Investments Acquires Stake in Tree Line Capital Partners

In a strategic move to expand its investment portfolio, Aflac Global Investments (AGI), the asset management subsidiary of Aflac Incorporated, has announced the acquisition of a stake in San Francisco-based lower middle-market direct lender, Tree Line Capital Partners (Tree Line). The deal, structured to provide AGI with a 40% interest in Tree Line upon closing, also includes a multiyear commitment from Aflac to allocate a portion of its annual investable cashflow to the company.

Founded in 2014 by Managing Partners Tom Quimby and Jon Schroeder, Tree Line currently manages $2.7 billion in assets and specializes in direct lending to the lower middle market. With over 360 investments totaling $5.0 billion since its inception, Tree Line has established itself as a key player in the industry. Quimby and Schroeder will continue to manage the business and serve on its board of directors, maintaining investment and operational autonomy.

Aflac Global Investments Executive Vice President, Global Chief Investment Officer Bradley E. Dyslin expressed enthusiasm about the partnership, stating, “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.”

Managing Partners Tom Quimby and Jon Schroeder also shared their excitement about the collaboration, highlighting the growth opportunities it presents for Tree Line. They stated, “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.”

The closing of the transaction is subject to regulatory approvals, with Evercore serving as exclusive financial advisor to Aflac and Debevoise & Plimpton LLP as legal counsel. Berkshire Global Advisors acted as exclusive financial advisor to Tree Line Capital Partners, with legal counsel provided by Kramer Levin Naftalis & Frankel LLP and Paul Hastings LLP.

This strategic partnership between Aflac Global Investments and Tree Line Capital Partners marks a significant milestone for both companies, signaling a commitment to growth and innovation in the direct lending market.