Varagon Capital Partners, L.P. (“Varagon”), a premier middle market lender, has announced a significant milestone in its growth trajectory. Funds managed by Goldman Sachs Asset Management have made a strategic preferred equity investment in an affiliate of Varagon Capital Partners. This partnership is poised to fuel Varagon’s expansion in direct lending and support the launch of new investment vehicles, reinforcing its position as a leader in the U.S. middle market.
This strategic alliance formalizes a long-standing relationship between Varagon Capital Partners and Goldman Sachs Asset Management. The investment is expected to provide substantial support for Varagon to capitalize on the increasing opportunities within the private credit markets, particularly in the resilient core and lower middle market segments. In an economic environment marked by volatility in public markets, private credit continues to be an attractive asset class, and Varagon is strategically positioned to leverage its expertise and established track record.
Walter Owens, CEO of Varagon Capital Partners, expressed enthusiasm about the partnership, stating, “We are excited to welcome Goldman Sachs Asset Management as a strategic partner. This transaction formalizes a relationship that has evolved over several years. We are confident that this partnership will generate significant value for Goldman Sachs Asset Management and all of Varagon’s stakeholders.”
Echoing this sentiment, Harold Hope and Christian von Schimmelmann, Managing Directors at Goldman Sachs Asset Management, commented, “Goldman Sachs Asset Management is thrilled to partner with Varagon to support the firm’s continued growth. Over the years, we have cultivated a strong relationship with Varagon and have been consistently impressed by their management team, impressive growth, and exceptional credit performance.”
Varagon Capital Partners has distinguished itself as a solutions-oriented partner for private equity sponsors and their portfolio companies. With approximately $15.1 billion in Assets Under Management (AUM) as of March 31, 2022, Varagon specializes in originating senior secured loans for private equity-backed middle market companies in the United States. The firm’s expertise lies in providing flexible and dependable capital solutions, building strong relationships with private equity firms to access direct financing opportunities. Since its inception in 2014, Varagon Capital Partners has deployed over $21 billion in middle market loans, demonstrating its robust capabilities and deep market penetration. The firm operates from its offices in New York, Chicago, and Fort Worth, ensuring comprehensive coverage of the U.S. middle market landscape.
Goldman Sachs Asset Management, a primary investment division of Goldman Sachs (NYSE: GS), brings together a comprehensive suite of traditional and alternative investment solutions. With over $2 trillion in assets under supervision globally as of March 31, 2022, Goldman Sachs Asset Management serves a diverse clientele, including leading institutions, financial advisors, and individual investors worldwide. The firm is committed to delivering long-term performance through dedicated partnerships and expert insights across global markets. Goldman Sachs Asset Management has a significant presence in alternative investments, including private equity, growth equity, private credit, real estate, and infrastructure. Notably, the Vintage Funds within Goldman Sachs Asset Management are pioneers in the secondary market, having invested over $55 billion since 1998. Furthermore, the Petershill business unit partners with leading alternative asset managers, fostering their strategic development and growth.
About Varagon Capital Partners
Varagon Capital Partners is a leading private credit investment firm focused on the U.S. middle market. Specializing in first lien and unitranche loans, Varagon provides crucial financing to performing, private equity-backed companies. The firm’s direct origination model and deep relationships with private equity sponsors enable it to offer tailored and reliable capital solutions to borrowers. With offices strategically located across the United States, Varagon is well-positioned to serve the financing needs of the dynamic middle market.
About Goldman Sachs Asset Management
Goldman Sachs Asset Management is the investment management arm of Goldman Sachs, a leading global financial institution. With a vast global network and deep market expertise, Goldman Sachs Asset Management delivers comprehensive investment and advisory services. The firm’s commitment to long-term performance and client success is underpinned by its rigorous investment process and access to the broad resources of Goldman Sachs. Goldman Sachs Asset Management is a significant player in both traditional and alternative asset classes, offering clients a wide range of investment opportunities and solutions.
Disclaimer: AUM as used in the original press release refers to total capital commitments and includes both discretionary and non-discretionary assets, as well as leverage. The definition of AUM may vary in other contexts. Forward-looking statements contained within the original press release are based on current views and are subject to risks, uncertainties, and assumptions that could cause actual results to differ materially. This is not an offer to sell securities or a solicitation to purchase securities. Past performance is not indicative of future results.
