John Tracey (pictured), a managing director and head of healthcare risk management at Varagon Capital Partners, has left the firm to join a Connecticut bank.
He was hired as a managing director and senior relationship manager for Webster Bank’s sponsor and specialty finance group, according to a statement from Webster.
Tracey is tasked with originating and executing senior credit facilities for private equity sponsors and mid-market healthcare companies. He reports to Andre Paquette, co-head of the sponsor and specialty finance group.
“We are excited to have someone of John’s level of experience and sector knowledge join the Webster platform,” Paquette said. “His expertise in healthcare finance will augment and diversify Webster’s sponsor and specialty portfolio.”
Tracey has been with Varagon since its founding two years ago. A company spokeswoman couldn’t immediately provide comment on a replacement. Before Varagon, he was a director at CIT Healthcare for about four years. Tracey began his career at GE Capital, where he held several roles within the consumer and corporate finance lending platforms. Many of Varagon’s senior executives hail from GE Capital and CIT. Steve Warden, Varagon’s head of healthcare, also moved there from CIT in 2014.
Varagon was launched with backing from AIG and Oak Hill Capital Partners in the summer of 2014. The firm was little known until last year, when the Ares Capital Corporation announced it would be forming a new lending joint venture with Varagon, replacing its former partner Antares Capital. That partnership was discontinued when Antares was bought by the Canada Pension Plan Investment Board from General Electric in August.
Earlier this month, Ares announced it was leading a $1 billion unitranche financing into Qlik Technologies, backing Thoma Bravo’s $3 billion buyout of the data analytics company. It was the first $1 billion unitranche deal ever executed by a BDC. Varagon, TPG Special Situations Partners and Golub Capital served as co-lead arrangers on the deal.
Webster Bank is based in Waterbury, Connecticut. It serves businesses and consumers in the Northeast.