Allianz Global Investors (AllianzGI), one of the world’s leading active investment managers, StepStone Group LP (StepStone), a leading global private markets solutions provider, and Citizens Bank, a leading originator of middle-market loans, have collaborated in the launching of AC Loan Sourcing, Ltd (AC Loan Sourcing), a lender to US middle-market companies. AC Loan Sourcing seeks to maximize the interest income it distributes to its investors by minimizing the historically high overhead costs associated with investing in middle-market loans.

AC Loan Sourcing was formed to increase accessibility of middle market, first lien, senior secured loans to a broad range of investors. To accomplish this, AllianzGI is working with Citizens Bank, the 12th largest commercial bank in the United States. Under this arrangement, the US Private Credit Solutions investment team at AllianzGI manages AC Loan Sourcing and works with Citizens to source and underwrite assets for the portfolio – primarily loans to sponsor-owned corporations.

AllianzGI’s investment in AC Loan Sourcing was led by John Corbett, Portfolio Manager, and Jamie Walker, Portfolio Manager, US Private Credit Solutions at AllianzGI. John Corbett said: “AC Loan Sourcing provides a unique, cost efficient solution to invest in first lien middle-market loans – a historically compelling asset class. We are pleased to have the opportunity to work with StepStone and Citizens Bank on this investment.”

Jan Kuhlmann, Managing Director, led StepStone’s deal team. Urs von Büren, a StepStone Partner who leads their private debt activities, said: “We are pleased to work together with AllianzGI’s US Private Credit Solutions team on this bespoke investment. It provides our investors a distinctive opportunity to gain instant exposure to a segment of the market that we believe is capable of generating attractive risk-adjusted returns.”

Philip Robbins, Managing Director of Citizens Bank, commented: "This arrangement combines Citizens’ unique direct origination capabilities with a global asset management platform. The transaction was designed to increase fee revenue, maintain client relationships and improve balance sheet flexibility. Citizens looks forward to this strategic relationship.”

The New York-based AllianzGI US Private Credit Solutions investment team provides private credit to US middle-market businesses through its Credit Solutions funds and syndicated loan funds. The team’s middle-market direct origination and structuring expertise and deep bench of industry-focused research analysts provide an edge in sourcing, selecting and monitoring the AC Loan Sourcing portfolio.

About Allianz Global Investors

Allianz Global Investors is a diversified active investment manager with a strong parent company and a culture of risk management. With 25 offices worldwide, we provide global investment and research capabilities with consultative local delivery. We have more than $598 billion in AUM for individuals, families and institutions worldwide and employ over 650 investment professionals.

At Allianz Global Investors, we follow a two-word philosophy: Understand. Act. It describes how we look at the world and how we behave. We aim to stand out as the investment partner our clients trust by listening closely to understand their challenges, then acting decisively to provide them with solutions that meet their needs.

AUM data as of December 31, 2017

About StepStone Group

StepStone is a global private markets specialist that provides customized investment and advisory solutions to institutional investors. With more than $135 billion of total capital allocations, including over $35 billion of assets under management, the Firm covers the spectrum of opportunities in private markets across the globe. StepStone uses a disciplined, research-focused approach that prudently integrates fund investments, secondaries, and co-investments to create solutions that are customized according to the objectives of any private markets investment program. StepStone has offices in Beijing, Dublin, Hong Kong, La Jolla, London, Luxembourg, New York, Perth, San Francisco, São Paulo, Seoul, Sydney, Tokyo, Toronto, and Zurich. Learn more at www.stepstoneglobal.com.

Capital allocation and AUM data as of September 30, 2017

About Citizens Financial Group, Inc.

Citizens Financial Group, Inc. is one of the nation’s oldest and largest financial institutions, with $152.3 billion in assets as of December 31, 2017. Headquartered in Providence, Rhode Island, Citizens offers a broad range of retail and commercial banking products and services to individuals, small businesses, middle-market companies, large corporations and institutions.

Citizens helps its customers reach their potential by listening to them and by understanding their needs in order to offer tailored advice, ideas and solutions. In Consumer Banking, Citizens provides an integrated experience that includes mobile and online banking, a 24/7 customer contact center and the convenience of approximately 3,300 ATMs and approximately 1,150 branches in 11 states in the New England, Mid-Atlantic and Midwest regions. Consumer Banking products and services include a full range of banking, lending, savings, wealth management and small business offerings. In Commercial Banking, Citizens offers corporate, institutional and not-for-profit clients a full range of wholesale banking products and services, including lending and deposits, capital markets, treasury services, foreign exchange and interest rate products, and asset finance. More information is available at www.citizensbank.com or visit us on Twitter, LinkedIn or Facebook.

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