Ares, Varagon Capital form J.V. to make middle market loans

Ares Capital Corp. and Varagon Capital Partners are forming a joint venture to make senior secured loans to middle-market companies. The J.V. will be called Senior Direct Lending Program (SDLP) that will seek to follow the success Ares had with GE Capital with its J.V., the Senior Secured Loan Program. The SDLP will underwrite and hold first lien loans, including stretch senior and unitranche loans, that are originated by Ares and Varagon. SDLP will commit and hold individual loans of up to $300 million, while Ares may also co-invest with the SDLP.

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