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GSAM invests in Varagon Capital Partners

Thursday, June 30, 2022
Opalesque Industry Update - Varagon Capital Partners, L.P., 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.

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