Goldman Sachs Asset Management (GSAM) made a strategic preferred equity investment in Varagon Capital Partners in a bid to support the firm’s growing lending business, the launch of new vehicles and continued expansion of the $15 billion middle market specialist.
New York-based Varagon is known for its origination of senior loans to private equity backed, U.S. middle market companies. The firm’s specialty is secured first lien and unitranche loans. Since its inception in 2014, the group, which also has offices in Chicago and Ft. Worth, has invested more than $21 billion in middle market loans.
“We are excited to welcome Goldman Sachs Asset Management as a strategic partner,” said Varagon CEO Walter Owens. “This transaction formalizes a relationship that has taken shape over a number of years, and we believe this partnership is destined to create value for Goldman Sachs Asset Management and all of Varagon’s stakeholders.”
Varagon officials see the firm as being well-positioned to expand its leadership presence in the core and lower U.S. middle market, a resilient segment within the private credit markets.
According to GSAM Managing Directors Harold Hope and Christian von Schimmelmann, the partnership is the culmination of a close relationship with Varagon over multiple years. The pair said in a statement that they “have been truly impressed by the management team, growth trajectory, and Varagon’s best in class credit performance.”
