American International Group (AIG) and Oak Hill Capital Management have established an asset management firm Varagon Capital Partners to provide direct lending services to middle market companies.
Under the deal, AIG will provide an initial investment backing of US$1.5 billion.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The new entity will be led by Walter Owens, who has held leadership positions at GE Capital, CIT Group, and TD Bank. The company is headquartered in New York.
Varagon will provide investors with options to invest in middle market credit, and investment services, blending information transparency and flexible investment mandates with robust risk management.
Further, a broad investment mandate enables Varagon to offer competitive first-lien, unitranche and second-lien loans, and mezzanine financing, to companies with US$10 million to US$75 million of EBITDA and the company targets leveraged finance opportunities of up to US$350 million with typical hold size of US$20 million to US$100 million.
Oak Hill managing partner Denis Nayden will serve as the chairman of Varagon’s Board of Directors along with Michael Gaudino, former CEO of GE Corporate Financial Services.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataMorris Offit, chairman of Offit Capital, will serve on Varagon’s board of directors.
Nayden said: "Varagon developed from our belief that there is an opportunity to better serve both borrowers and investors in the middle market. Varagon offers investors a superior means to invest in middle market credit, providing highly attractive risk-adjusted returns through tailored, transparent investment solutions."
