Varagon Capital Partners

What is Varagon Capital Partners?

Varagon Capital Partners is an asset management firm primarily engaged in direct lending to middle market companies. They position themselves as a specialist lender, offering personalized financing solutions to address the unique needs of private equity sponsors and investors in the private credit market.

The firm targets businesses generally with $10 million to $25 million in EBITDA and provides a wide range of tailored financing products. These include competitive first-lien, unitranche, and second-lien loans, as well as mezzanine financing options. Their investment strategy revolves around targeting leveraged and structured finance opportunities, handling transactions up to $350 million with a typical hold size ranging from $20 million to $100 million.

Varagon prides itself on their disciplined approach, focusing on financing resilient middle market businesses in partnership with a broad network of hundreds of private equity sponsors. Demonstrating a strong commitment to providing comprehensive services, Varagon also offers investment, risk management, analytics, and reporting services.

Their independence is underlined by backing from AIG and certain partners and affiliates of Oak Hill Capital Management, which has fueled the firm's growth since its inception in 2014. Furthermore, the firm launched with significant backing, characterized by a $1.5 billion investment commitment from AIG.

Their capability to provide value-added financing solutions is emphasized through their dedication to exceeding client expectations and delivering professional expertise, helmed by a leadership team with extensive experience in the financial sector. Although Varagon operates across several sectors, they specifically cater to the commercial and industrial, healthcare, and energy sectors, showcasing a sector-based expertise in their financing endeavors.

The company is headquartered in New York, New York, with additional offices in Chicago and Fort Worth, extending their reach and local market insights.