We purchase assets in the syndicated loan market that are structured, arranged and administered by large commercial or investment banks. These arranged loans are sold broadly to institutional investors such as Golub Capital and tend to be liquid in the secondary market.
Golub capital’s broadly syndicated loan business curates well diversified portfolios of high quality, syndicated senior secured loans.
Golub Capital’s credit strengths combined with entrepreneurial nimbleness and unwavering attention to fundamentals through business cycles gives us the ability to deliver advantage. Our Broadly Syndicated Loans team enhances its analytical capability by utilizing the resources of our institutional platform, including:
- Over 300 portfolio companies that provide intelligence about the real economy directly from “Main Street”
- A network of leading private equity sponsor relationships that provides insights into special situations and attractive allocations of the deals we like
- Synergies among Golub Capital’s business units. Our Broadly Syndicated Loans group has access to the investment professionals in our Middle Market Lending, Golub Growth, and capital markets units.
AN EXPERIENCED TEAM OF SKILLED CREDIT PROFESSIONALS
Our Broadly Syndicated Loans team has experience through numerous business cycles and has deep industry knowledge in the following verticals: Aerospace & Defense, Auto, Packaging, Chemicals, Cable & Telecom, Leisure, Healthcare Finance, Consumer Goods, Restaurant, Retail and Franchisor Finance, Food & Beverage and Software, Digital & Technology Services.
DISCIPLINED INVESTMENT APPROACH
Our investment process is driven by highly selective, rigorous bottom-up fundamental credit evaluation. We do not chase yield. Asset selection involves evaluation of the macro-economy, industry trends, business positioning, sponsorship, consistency and adequacy of cash flows, collateral coverage, deal structure and management quality. Our internal ratings system and an enterprise valuation assessment are key components of the overall investment decision. Because of our asset size and focus on controlled growth, we can and do reject the preponderance of the transactions we review, allowing us to choose the best risk/reward scenarios.
The Broadly Syndicated Loans business unit generally pursues a buy and hold strategy. However, we do make use of the secondary market for loss avoidance (through sales upon early detection of threats) and value building (through discount purchases). Our continuous monitoring of portfolio names lead to early detection of threats and opportunities. We have a distinctive approach to credit focused on analyzing enterprise value in downside scenarios.