Varagon Capital Partners, L.P. (New York)

Varagon Capital Partners, L.P. is a large advisory firm based in New York. It manages $9.07 billion of regulatory assets for 9 client accounts. It has been registered with the SEC as an adviser since 2016 and has operated in the jurisdictions of Illinois, Massachusetts, New York, and Texas.

Varagon Capital Partners provides portfolio management for pooled investment vehicles and portfolio management for businesses and institutional clients. It doesn't provide financial planning services to its clients. On top of advisory services, the firm doesn't engage in other business activities.

Varagon Capital Partners: assets under management

The assets under management (AUM) of Varagon Capital Partners, L.P. is $9.07 billion. The firm's AUM has grown by 1186% since the beginning of its operation, and the company doesn't manage any assets belonging to foreign clients.

The firm manages $2.59 billion in discretionary accounts and $6.48 billion in non-discretionary accounts. On average, the discretionary accounts where all decisions are made on behalf of the client hold $517.55 million each. Non-discretionary accounts, where clients actively manage their portfolios, generally hold around $1.62 billion.

Varagon Capital Partners has custody of $189.84 million in cash and securities for 8 clients in total but doesn’t act as a qualified custodian.

Investments

The firm invests in other assets the most. They account for 98% of the total AUM. The second-largest asset type is cash and cash equivalents, which make up 2% of the firm’s portfolio.

Fees & Commissions

The advisory firm has several streams of revenue. Clients pay Varagon Capital Partners, L.P. for their services and products based on a percentage of assets under management and performance-based fees. The adviser charges an additional fee when a set benchmark is outperformed. These fees don’t include brokerage commissions, interest, taxes, and other account expenses.

What kind of clients Varagon Capital Partners serves?

The firm provides services to insurance companies, pooled investment vehicles, and corporations or other businesses. The largest group of clients of Varagon Capital Partners is pooled investment vehicles with 2 clients and $6.56 billion of assets under management. Among the 10 most similar advisory firms, Varagon Capital Partners has the 5th lowest percentage of pooled investment vehicles out of all clients.

The amount of regulatory assets under management is $9.07 billion for 9 clients. None of the firm’s clients are foreign persons or businesses.

Varagon Capital Partners also advises several private funds. Namely, one private equity fund. The minimum investment commitment required of non-related persons is $10,000,000 for each fund.

Careers at Varagon Capital Partners, L.P.

The company employs 63 people that are either part- or full-time employees. 62 percent of the employees work as investment advisers or researchers. No employees are registered as investment adviser representatives with the state securities authorities.

There isn’t anyone with the role of looking for and bringing in new clients on behalf of the firm. The firm doesn’t compensate employees in addition to the salary for bringing in new clients. Employees don’t receive compensation from other entities for client referrals.

Douglas Macrae Kaden joined the executive team most recently as the Managing Member.

Direct owners and executive officers

Indirect Owners

The SEC currently registers 25 indirect owners.

Based in New York

The principal office where Varagon Capital Partners, L.P. performs its advisory services is located at 299 Park Avenue, New York, NY 10171, which is also the mailing address of the firm. An additional office of the firm is in Chicago, IL. It doesn’t run an office outside of the United States.

You can reach the main office by calling the phone number 212-235-2600. The normal business hours are 9:00 am - 5:00 pm on Monday - Friday. You can find more information about the New York firm at varagon.com and its LinkedIn profile.

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