(Bloomberg) — American International Group Inc., the largest property-casualty insurer in the U.S. and Canada, joined private-equity firm Oak Hill Capital Management to help start a lender serving medium-sized companies.
AIG has committed $1.5 billion to Varagon Capital Partners, the companies said in a statement today. The venture will be led by Chief Executive Officer Walter Owens, who previously worked at GE Capital and CIT Group Inc.
Institutional investors have been seeking to diversify holdings beyond bonds with interest rates near record lows. Many have added loans to so-called middle-market companies to boost yields.
In addition to insurers, "pension funds, family offices and endowments that have become investors in middle-market credit are looking to take the next step," Owens said in a phone interview. They're "really perfect candidates to be talking with us."
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