Varagon Capital Corporation is a privately offered, externally managed BDC that lends to U.S. middle market companies backed by private equity sponsors, generally with EBITDA of $10 million to $75 million. It invests mainly in directly originated, floating rate senior secured first lien and unitranche loans, usually as lead lender, and may selectively hold second lien, mezzanine and equity positions. About a fifth of the portfolio is a 12.5% stake in the subordinated certificates of the Senior Direct Lending Program, a joint venture with Ares Capital Corporation. The stated objective is current income with a focus on capital preservation and, to a lesser extent, capital appreciation, using leverage under a 150% asset coverage election.