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Varagon Capital Partners Forms New Partnership with Goldman Sachs Asset Management
Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Very Positive)
Tags
partnership
Rhea-AI Summary
Varagon Capital Partners has announced a strategic preferred equity investment from funds managed by Goldman Sachs Asset Management, aimed at supporting Varagon's lending growth and business expansion. Varagon, with approximately $15.1 billion in assets under management (AUM), focuses on senior loans to private equity-backed U.S. middle market companies. The firm anticipates increased growth in private equity transaction volumes, positioning itself strongly within the resilient lower middle market segment.
Positive
Goldman Sachs Asset Management made a strategic preferred equity investment in Varagon.
Varagon aims to expand its lending business and launch new vehicles.
Varagon has approximately $15.1 billion in AUM, indicating substantial capital management.
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None.
NEW YORK--(BUSINESS WIRE)--
Varagon Capital Partners, L.P. (“Varagon” or the “Firm”), a leading middle market lender specializing in directly-originated senior loans to private equity-backed, U.S. middle market companies, announced that funds managed by Goldman Sachs Asset Management have made a strategic preferred equity investment in an affiliate of the Firm. The strategic partnership is expected to support the growth of Varagon’s lending business, the launch of new vehicles and the continued expansion of the Firm.
Varagon, with approximately $15.1 billion in AUM, has established itself as a solutions-oriented partner to private equity firms, the companies in which they invest and the investors that trust in Varagon to manage assets on their behalf. In a time of uncertainty and volatility in liquid markets, the Firm believes it is well positioned to expand its leadership presence in the core and lower U.S. middle market, a segment of the private credit markets that has, to date, been resilient relative to liquid credit.
“We are excited to welcome Goldman Sachs Asset Management as a strategic partner,” said Walter Owens, CEO of Varagon. “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.”
“Goldman Sachs Asset Management is excited to partner with Varagon to support the continued expansion of the Firm. We have developed a close relationship with Varagon over multiple years and have been truly impressed by the management team, growth trajectory, and Varagon’s best in class credit performance,” said Harold Hope and Christian von Schimmelmann, Managing Directors at Goldman Sachs Asset Management.
About Varagon Capital Partners
Varagon Capital Partners is a private credit manager, specializing in secured first lien and unitranche loans to performing, private equity-backed, U.S. middle market companies. With offices in New York, Chicago and Fort Worth, Varagon cultivates relationships with private equity sponsors to directly source financing opportunities, providing flexible, reliable capital solutions to borrowers. As of March 31, 2022, Varagon Capital Partners has approximately $15.1 billion in AUM. Since its inception in 2014, the Firm has invested more than $21 billion in middle market loans. Follow us on LinkedIn.
About Goldman Sachs Asset Management
Bringing together traditional and alternative investments, Goldman Sachs Asset Management provides clients around the world with a dedicated partnership and focus on long-term performance. As the primary investing area within Goldman Sachs (NYSE: GS), we deliver investment and advisory services for the world’s leading institutions, financial advisors and individuals, drawing from our deeply connected global network and tailored expert insights, across every region and market—overseeing more than $2 trillion in assets under supervision worldwide as of March 31, 2022. Driven by a passion for our clients’ performance, we seek to build long-term relationships based on conviction, sustainable outcomes, and shared success over time. Goldman Sachs Asset Management invests in the full spectrum of alternatives, including private equity, growth equity, private credit, real estate and infrastructure. Established in 1998, the Vintage Funds within Goldman Sachs Asset Management have been innovators in the secondary market and have invested over $55 billion of capital since inception. Established in 2007, the Petershill business within Goldman Sachs Asset Management partners with leading alternative asset managers and helps to accelerate their strategic development. Follow us on LinkedIn.
Disclaimers
As used in this press release, the term “AUM” refers to total capital commitments and includes discretionary and non-discretionary assets, as well as leverage. As of March 31, 2022, the approximately $15.1 billion of Varagon’s AUM included approximately $1.9 billion of non-discretionary vehicles under management. For the avoidance of doubt, AUM includes drawn and undrawn capital commitments from client accounts. The definition of AUM in this press release may differ from the Firm’s definition of its assets under management in other contexts, including, but not limited to, regulatory filings and other disclosures.
These are the current views of Varagon, Walter Owens and Goldman Sachs Asset Management as of the date hereof, and none of the parties have any responsibility to advise of any changes in the views expressed. All information is believed to be reliable as of the date on which this press release was issued and has been obtained from sources believed to be reliable. No representation or warranty, either express or implied, is provided in relation to the accuracy or completeness of the information contained herein. Except as required by the federal securities laws, Varagon does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changing circumstances or any other reason after the date of this press release.
This press release may contain statements that constitute forward-looking, which relate to future events or Varagon’s future performance or financial condition, including statements relating to Varagon's private equity transaction volume continuing to increase and being well positioned to expand its presence in the core and lower middle market. Certain information constitutes “forward-looking statements,” which are identified by terminology such as “may,” “will,” “should,” “expect,” “anticipate,” “target,” “project,” “estimate,” “intend,” “continue” or “believe,” or other variations or comparable terminology. These statements are based on management’s current expectations, assumptions and beliefs. They are not guarantees of future results and are subject to numerous risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statement. These risks include risks related to, among other things: changes in the financial, capital and lending markets; interest rate volatility, including the decommissioning of LIBOR and rising interest rates; regulatory changes; general economic and business conditions; and the continued uncertainties associated with the COVID-19 pandemic. Actual events or results may differ materially from those reflected or contemplated in such forward-looking statements.
This press release does not constitute an offer to sell any securities or the solicitation of an offer to purchase any securities. Past performance is not necessarily indicative of future performance.
