Press Release - Golub Capital

The third Golub Capital Social Impact Lab will launch later this year at Booth’s Rustandy Center for Social Sector Innovation

CHICAGO—January 19, 2022. Golub Capital, the University of Chicago Booth School of Business, and the Chicago Urban League are launching a partnership that will play a foundational role at the new Golub Capital Social Impact Lab (“Golub Capital Lab”) at Chicago Booth’s Rustandy Center for Social Sector Innovation. The Golub Capital Lab, through a significant five-year commitment from Golub Capital, will provide training and professional development to amplify the impact of leaders of high-potential nonprofits serving communities of color.

The signature offering of the Golub Capital Lab, scheduled to launch this year, will be IGNITE, a Golub Capital Nonprofit Leadership Program. IGNITE will combine world-class educational content, coaching, peer mentorship, consulting assistance, and community networking for nonprofit leaders serving the Black community, incorporating both the hard and soft skills that are essential for nonprofit leaders to thrive.

“We are proud to partner with the University of Chicago and the Chicago Urban League—and build upon their commitment to communities of color in Chicago—to create this multi-faceted program. We believe this is an outstanding opportunity to offer resources specifically tailored to help nonprofits strengthen and scale their impact,” said David Golub, President of Golub Capital.

To develop, market, and grow IGNITE, Booth will partner with the Chicago Urban League, a leading nonprofit in Chicago dedicated to achieving equity for Black families and communities through social and economic empowerment. The Chicago Urban League will offer a connection to its network of accomplished nonprofit leaders, as well as an opportunity to scale the program to other National Urban League affiliates throughout the country.

“There is no shortage of resourceful and capable leaders working to address critical needs in communities of color, but far too often, these individuals have limited access to resources to strengthen their leadership capacity and increase their impact,” said Karen Freeman-Wilson, president and CEO of the Chicago Urban League. “IGNITE can be a game changer for these nonprofit leaders and the communities they serve in Chicago and across the nation. We’re incredibly excited to be part of the new Golub Capital Social Impact Lab and to expand our partnership with Booth.”

The Golub Capital Lab and IGNITE will live within the Rustandy Center for Social Sector Innovation, Booth’s social impact hub. George Wu, the John P. and Lillian A. Gould Professor of Behavioral Science at Booth, will serve as the faculty director. Wu is also a faculty lead for the IMPACT Leadership Development program, developed by the Chicago Urban League and Booth in 2014 to prepare up-and-coming professionals for leadership positions in Chicago’s for-profit, nonprofit, and government sectors.

“I’m delighted to serve as the inaugural faculty director of the Golub Capital Lab and see it as another opportunity for Chicago Booth to partner with the Chicago Urban League to support leaders and organizations dedicated to our city,” Wu said. “IGNITE will help equip the next generation of nonprofit leaders with the tools, frameworks, and resources they need to tackle systemic issues and drive social change.”

Golub Capital is a market-leading, award-winning direct lender and credit asset manager with more than 325 employees based in Chicago. The company chose to invest in Chicago Booth because of the school’s world-class content on leadership and business, vast network of corporate leaders and alumni, expertise in social sector innovation, and its infrastructure that will allow it to build and scale IGNITE.

“We are thrilled that Chicago Booth is the home of the newest Golub Capital Lab,” said Madhav Rajan, Chicago Booth Dean and George Pratt Shultz Professor of Accounting. “The university and Booth are dedicated to investing in our community, and Golub Capital’s gift allows us to continue to expand our impact in meaningful ways.”

The growing network of Golub Capital Social Impact Labs is designed to engage the next generation of business leaders and academics at leading business schools to accelerate progress across the nonprofit ecosystem. In 2019, Golub Capital established its first lab at the Stanford Graduate School of Business, and in 2021, it announced the creation of a second Golub Capital Lab at the Kellogg School of Management at Northwestern University.

About Golub Capital
Golub Capital is a market-leading, award-winning direct lender and credit asset manager, with over $45 billion of capital under management. Golub Capital specializes in delivering reliable, creative and compelling financing solutions to companies backed by private equity sponsors. The firm’s sponsor finance expertise also forms the foundation of its Late Stage Lending, Broadly Syndicated Loan and Credit Opportunities investment programs. Across its activities, Golub Capital nurtures long-term, win-win partnerships that inspire repeat business from private equity sponsors and investors. Founded over 25 years ago, Golub Capital today has over 600 employees and lending offices in Chicago, New York, San Francisco and London. For more information, please visit golubcapital.com.

About the Chicago Urban League
One of the oldest and largest affiliates of the National Urban League, the Chicago Urban League works to achieve equity for Black families and communities through social and economic empowerment. Since 1916, through collaborative community, corporate and civic relationships, the organization has helped people find jobs, secure affordable housing, enhance their educational experiences and grow their businesses. For more information about our programs, visit www.chiul.org. Follow us on Twitter at @ChiUrbanLeague, Instagram at @thechiurbanleague, and Facebook at @ChicagoUrbanLeague.

Industrial Sector Weaker due to Rising Costs and Physical Supply Chain Problems

The Golub Capital Altman Index can provide early insight into financial performance of public companies and GDP in advance of earnings season.

NEW YORK, January 13, 2022 – Middle market private companies in the Golub Capital Altman Index experienced EBITDA growth of 22% and revenue growth of 21% in October and November 2021 compared to their October and November 2019 earnings and revenue. The data in this report reflects the median performance of approximately 100 companies that were in the Golub Capital Altman Index in both periods. The comparison over a two-year period is intended to provide greater insight than the report’s typical year-over-year analysis, given the impact of COVID-related lockdowns throughout much of 2020.

“Boomflation continued in Q4,” said Lawrence E. Golub, CEO of Golub Capital. “For the third consecutive quarter, median revenue and EBITDA grew by more than 20% compared to the same period in 2019, pre-Covid. That said, many industrial companies could not meet demand, and the missed operating leverage allowed increased labor and material costs to compress margins. With Omicron, 2022 will reveal which private equity backed companies fixed their 2020 Covid-related problems permanently and which just kicked the can down the road and will now face hard times.”

Dr. Edward I. Altman said, “The Consumer and Tech sectors were once again the standout performers, posting revenue and EBITDA growth in excess of 30% compared to the same period in 2019, while expanding profit margins. Looking ahead, Omicron seems likely to drive dispersion in company performance based on industry as well as geography. Businesses that sell intangible goods and services, like software companies, will have an easier time than those that rely on physical goods and in-person interactions.”

The Golub Capital Altman Index (“GCAI”), which is produced by Golub Capital in collaboration with renowned credit expert Dr. Edward I. Altman, is the first and longest-running index based on actual revenue and earnings (defined as earnings before interest, taxes, depreciation and amortization, or “EBITDA”) for middle market companies. It measures the median revenue and earnings growth of more than 150 private U.S. companies in the loan portfolio of Golub Capital, a leading middle market lender. Reported shortly before public company quarterly earnings season, the GCAI has served as a reliable indicator of the overall growth rates in revenue and earnings of public companies in market indexes such as the S&P 500 and S&P SmallCap 600 (“S&P 600”), as well as quarterly Gross Domestic Product (“GDP”), according to statistical back-testing dating back to 2012, when data began to be tracked.

The size and diversity of the Golub Capital loan portfolio ensure that the confidentiality of all company-specific information used in the index is maintained in both the aggregate and industry segment data.

We believe the results (1) are representative of the general performance of middle market companies, which are a major contributor to U.S. private sector employment; (2) can be easily compared to the performance of the public companies that make up major stock indexes; (3) are relevant to the aggregate economic performance of the U.S. economy and (4) provide timely information for the investment community.

The companies in the GCAI operate in a wide range of industries. Results are provided for the total universe of GCAI constituents and by industry segment. Given the index’s limited exposure to Financials, Utilities, Energy and Materials, comparisons are made to the S&P 500 and S&P 600 as well as to “adjusted” versions of those indexes that exclude the aforementioned sectors.

About the Golub Capital Middle Market Report
The Golub Capital Middle Market Report analyzes the results of the Golub Capital Altman Index (“GCAI”), which measures the median revenue and earnings growth of more than 150 privately owned companies in the Golub Capital loan portfolio for the first two months of each calendar quarter. It compares these results to the U.S. gross domestic product and the financial performance of well-known market indexes, including the S&P 500 and S&P SmallCap 600. The GCAI is produced by Golub Capital in collaboration with credit expert Dr. Edward I. Altman.

About Golub Capital
Golub Capital is a market-leading, award-winning direct lender and credit asset manager, with over $45 billion of capital under management. Golub Capital specializes in delivering reliable, creative and compelling financing solutions to companies backed by private equity sponsors. The firm’s sponsor finance expertise also forms the foundation of its Late Stage Lending, Broadly Syndicated Loan and Opportunistic Credit investment programs. Across its activities, Golub Capital nurtures long-term, win-win partnerships that inspire repeat business from private equity sponsors and investors. Founded over 25 years ago, Golub Capital today has over 600 employees and lending offices in Chicago, New York, San Francisco and London. For more information, please visit golubcapital.com. 

About Dr. Edward I. Altman
A leading expert on credit markets, Dr. Edward I. Altman is the Max L. Heine Professor of Finance, Emeritus at the NYU Stern School of Business, and Director of Research in Credit and Debt Markets at the NYU Salomon Center for the Study of Financial Institutions. He is currently an advisor to several foreign central banks. Professor Altman has published or edited two-dozen books and over 150 articles in scholarly finance, accounting and economic journals. He has been inducted into the Fixed Income Analysts Society Hall of Fame, served as President of the Financial Management Association, was an FMA Fellow, and was amongst the inaugural inductees into the Turnaround Management Association Hall of Fame. He received his MBA and Ph.D. in Finance from the University of California, Los Angeles.

Important Disclosure
The Golub Capital Altman Index is provided as an indicator only, and does not constitute investment advice or the offer to sell or a solicitation to buy any security. Some of these statements constitute forward-looking statements, which may be predictions about future events, future performance, or future financial conditions. Some of these statements reflect opinions based upon the data presented in the Index, and these opinions may be incorrect. Actual results could vary materially from those implied or expressed in such forward-looking statements for any reason. The Golub Capital Altman Index has been created on the basis of information provided by third-party sources that are believed to be reliable, but the information has not been verified independently by Golub Capital. Golub Capital makes no warranty or representation as to the accuracy or completeness of such third-party information.

$36+ Billion in Commitments Closed in Last 12 Months, including $15+ Billion Closed in the Fourth Quarter of 2021

Capital Under Management Grows to $45+ Billion

NEW YORK, January 10, 2022 – Golub Capital today announced record originations for both the fourth quarter of 2021 and the full year. The Firm closed over $15 billion in commitments during the fourth quarter and over $36 billion in commitments for all of 2021.

“2021 was Golub Capital’s best year ever,” said David Golub, President of Golub Capital. “Our team, now over 600-strong, delivered on our mission to be best at sponsor finance, providing compelling financing solutions across 371 transactions while sustaining our long track record of low credit losses and excellent results for investors.”

Additional 2021 Highlights, based on preliminary results¹:

371 transactions ranging in size from less than $10 million to $3 billion
Over 90% of new loans were to companies controlled by private equity firms Golub Capital has previously worked with
Led or co-led a record 38 “mega one-stops” (unitranches above $500 million) in 2021, more than half of all mega one-stop deals completed during the period
Strong credit results, reflected in a default rate of approximately 0.16% for the year²
Capital under management grew to more than $45 billion as of January 1, 2022

“We are proud to be the financing partner of choice for so many leading private equity firms,” said Greg Cashman, Head of Direct Lending at Golub Capital. “We look forward to continuing to help our borrowers and sponsor partners succeed by providing them financing solutions with scale, reliability, domain expertise, creativity, multi-currency capabilities and flexibility.”

2021 Transaction Highlights include:

Increased insightsoftware’s unitranche facility to over $2 billion, marking the ninth upsize that Golub Capital has led for the company since 2018 to support add-on acquisitions
Structured 18 multi-currency and non-USD facilities totaling approximately $2.5 billion of commitments, for existing borrowers like FYidoctors as well as new platforms like New Look Vision Group
Acted as Administrative Agent, Joint Lead Arranger and Joint Bookrunner on a recurring revenue loan facility to support the LBO and merger of three market-leading social good platforms (EveryAction, Social Solutions and CyberGrants) and provided additional committed capital to support future M&A
Closed over 70 lower middle market transactions in industries including software, veterinary care, restaurants, specialty retail and financial services³
Delivered distinctive execution of complex, time-sensitive syndicated transactions, including a fully underwritten $1.5+ billion unitranche facility to Parts Town

About Golub Capital Sponsor Finance
Golub Capital is a market-leading, award-winning direct lender and credit asset manager, with over $45 billion of capital under management. Golub Capital specializes in delivering reliable, creative and compelling financing solutions to companies backed by private equity sponsors. The Firm’s Direct Lending group provides buy-and-hold financing for sponsor-backed transactions with hold positions of up to $700 million and arranges syndicated credit facilities up to $2+ billion.

Across its activities, Golub Capital nurtures long-term, win-win partnerships that inspire repeat business from private equity sponsors and investors. Founded over 25 years ago, Golub Capital today has over 600 employees and lending offices in Chicago, New York, San Francisco and London. For more information, please visit golubcapital.com.

_{Preliminary results are good faith estimates based on available data as of January 4, 2022. Actual data may differ materially from final closing numbers.}
_{Represents the 2021 default rate of all first lien Middle Market leveraged loans managed by Golub Capital as of December 31, 2021 based on preliminary data available as of January 4, 2022. It does not represent the performance of any specific portfolio or fund managed by Golub Capital or its affiliates. Past performance does not guarantee future results. The Default Rate of Total First Lien Middle Market Leveraged Loans is defined as (a) the aggregate principal amount of first lien middle market leveraged loans on a cost basis that are classified as Defaults during the calendar year divided by (b) the aggregate principal amount of first lien middle market leveraged loans outstanding at the end of the period. A loan is classified as a Default if (a) there is an uncured payment default with respect to principal or interest or (b) if the loan has been restructured with a full or partial debt-for-equity exchange.}
_{Defines lower middle market as companies with less than $35 million EBITDA.}

2020 Technologies and Compusoft are portfolio companies of Genstar Capital and TA Associates, respectively.

NEW YORK, December 1, 2021 — Golub Capital acted as Administrative Agent and Joint Lead Arranger on a $1 billion GOLD facility to finance the merger of 2020 Technologies (“2020”) and Compusoft by Genstar Capital and TA Associates. GOLD financings are Golub Capital One-Loan Debt facilities. The GOLD facility was funded using a combination of U.S. dollars, Canadian dollars, British pounds sterling and eurodollars.

Golub Capital has been Administrative Agent to 2020 since Genstar acquired the company from Golden Gate Capital in May 2021. Golub Capital more than doubled the size of the GOLD facility to support 2020’s subsequent merger with Compusoft. The combined company will be majority-owned by Genstar Capital and TA Associates.

“We are thrilled to support the combination of these two leading software platforms backed by two top tier sponsors with whom we have longstanding, valued partnerships,” said Spyro Alexopoulos, Senior Managing Director and Head of Originations at Golub Capital. “Our confidence in both sponsors, as well as our deep expertise in software, enabled us to quickly establish a high level of conviction in the deal and provide a GOLD facility designed to grow as the company grows.”

About Golub Capital Sponsor Finance
Golub Capital is a market-leading, award-winning direct lender and credit asset manager, with over $40 billion of capital under management. Golub Capital specializes in delivering reliable, creative and compelling financing solutions to companies backed by private equity sponsors. The Firm’s Direct Lending group provides buy-and-hold financing for sponsor-backed transactions with hold positions of up to $700 million and arranges syndicated credit facilities up to $2+ billion.

Across its activities, Golub Capital nurtures long-term, win-win partnerships that inspire repeat business from private equity sponsors and investors. Founded over 25 years ago, Golub Capital today has over 590 employees and lending offices in Chicago, New York, San Francisco and London. For more information, please visit golubcapital.com.

About 2020 Technologies Inc.
2020 helps professional designers, retailers and manufacturers in the interior design and furniture industries capture ideas, inspire innovation and streamline processes. By providing end-to-end solutions and a large collection of manufacturers’ catalogs, 2020’s applications enable professional designers and retailers to create kitchens, bathrooms, furniture and commercial offices that look as stunning on the screen as they do in reality. 2020 solutions for furniture and cabinet manufacturers deliver a complete manufacturing operations management capability to run their factories at maximum efficiency. Founded in 1987 and headquartered in Westford, Massachusetts, 2020 employs more than 850 people with direct operations in 11 countries and supports customers in many more locations around the world through a network of value-added resellers. For more information, please visit www.2020spaces.com.

About Compusoft
Compusoft provides visual CPQ solutions that simplify planning, configuration and visualization to power sales processes for the kitchen, bathroom, furniture and window & door industries. Compusoft’s solutions assist customers throughout the sales value-chain from end-customers through to manufacturers and are underpinned by a rich content database. Founded in 1989, Compusoft is headquartered in Sarpsborg, Norway, and serves customers in more than 100 countries with over 600 people in 18 countries across Europe, Asia-Pacific and North America. For more information, please visit www.compusoftgroup.com.

About TA Associates
TA Associates is a leading global growth private equity firm. Focused on targeted sectors within five industries – technology, healthcare, financial services, consumer and business services – the firm invests in profitable, growing companies with opportunities for sustained growth, and has invested in more than 550 companies around the world. Investing as either a majority or minority investor, TA employs a long-term approach, utilizing its strategic resources to help management teams build lasting value in high quality growth companies. TA has raised $47.5 billion in capital since its founding in 1968 and is committing to new investments at the pace of over $3 billion per year. The firm’s more than 100 investment professionals are based in Boston, Menlo Park, London, Mumbai and Hong Kong. More information about TA can be found at www.ta.com.

About Genstar Capital
Genstar Capital is a leading private equity firm that has been actively investing in high quality companies for over 30 years. Based in San Francisco, Genstar works in partnership with its management teams and its network of strategic advisors to transform its portfolio companies into industry-leading businesses. Together with Genstar X and all active funds, Genstar currently has approximately $33 billion of assets under management and targets investments focused on targeted segments of the financial services, healthcare, industrials, and software industries. More information about Genstar Capital can be found at www.gencap.com.

Q3 2021 Earnings grew by 21% in July and August 2021 compared to July and August 2019.

The Golub Capital Altman Index can provide early insight into financial performance of public companies and GDP in advance of earnings season.

NEW YORK, October 13, 2021 – Middle market private companies in the Golub Capital Altman Index experienced EBITDA growth of 21% and revenue growth of 24% in July and August 2021 compared to their July and August 2019 earnings and revenue. The data in this special edition report reflects the median performance of approximately 120 companies that were in the Golub Capital Altman Index in both periods. The comparison over a two-year period is intended to provide greater insight than the report’s typical year-over-year analysis, given the impact of COVID-related lockdowns throughout much of 2020.

Lawrence E. Golub, CEO of Golub Capital, said, “The U.S. economy continued to boom in Q3. The Consumer sector had a blockbuster quarter, with 27% revenue growth and 48% EBITDA growth compared to the same period in 2019. Consumer sector margins benefited from operating leverage as customers spent stimulus payments and caught up on purchases deferred by the pandemic. However, heading into Q4 the key question to ask is whether or not there will be enough inventory to keep pace with demand during the holiday season. With supply chain issues worsening by the day, it’s smart to get your holiday shopping done early this year.”

Dr. Edward I. Altman said, “While Q3 results were strong in aggregate, the Industrial sector showed the inverse of the positive trend in the Consumer sector for both revenue and EBITDA growth. Average Industrial revenue growth lagged the overall index, and Industrial sector EBITDA declined compared to 2019. Industrial businesses were challenged by stockouts and delivery problems, reducing revenues and inflating costs which were not passed through to customers. We would not be surprised to see a rolling wave of stockouts affecting other sectors in Q4, especially Consumer. On the other hand, businesses that sell intangible goods and services, like software companies, are well positioned to capitalize on the fundamental strength of the economy.”

About the Golub Capital Middle Market Report
The Golub Capital Middle Market Report analyzes the results of the Golub Capital Altman Index (“GCAI”), which measures the median revenue and earnings growth of more than 150 privately owned companies in the Golub Capital loan portfolio for the first two months of each calendar quarter. It compares these results to the U.S. gross domestic product, and the financial performance of well-known market indexes, including the S&P 500 and S&P SmallCap 600. The GCAI is produced by Golub Capital in collaboration with credit expert Dr. Edward I. Altman.

About Golub Capital
Golub Capital is a market-leading, award-winning direct lender and credit asset manager, with over $40 billion of capital under management. Golub Capital specializes in delivering reliable, creative and compelling financing solutions to companies backed by private equity sponsors. The firm’s sponsor finance expertise also forms the foundation of its Late Stage Lending, Broadly Syndicated Loan and Opportunistic Credit investment programs. Across its activities, Golub Capital nurtures long-term, win-win partnerships that inspire repeat business from private equity sponsors and investors. Founded over 25 years ago, Golub Capital today has over 550 employees and lending offices in Chicago, New York, San Francisco and London. For more information, please visit golubcapital.com.

NEW YORK, August 5, 2021 — Golub Capital acted as Left Lead Arranger, Administrative Agent and Joint Bookrunner on an $810 million broadly syndicated loan facility to support the acquisition of Rough Country, LLC (“Rough Country”) by TSG Consumer Partners (“TSG”), and on a $425 million broadly syndicated loan facility to support the acquisition of Confluence Technologies, Inc. (“Confluence”) by Clearlake Capital (“Clearlake”).

The $810 million facility for TSG’s acquisition of Rough Country from Gridiron Capital consisted of a $585 million first lien term loan, $175 million second lien term loan and $50 million revolver. Jefferies served as Joint Lead Arranger on the transaction.

Golub Capital has served as Administrative Agent to Rough Country since Gridiron Capital’s June 2017 buyout of the company, supporting five additional transactions during that period.

“Golub Capital’s deep credit experience and expert distribution to the institutional BSL market were both invaluable to the success of this transaction,” said Pierre LeComte, Managing Director at TSG Consumer Partners.

The $435 million facility for Clearlake’s acquisition of Confluence from TA Associates consisted of a $40 million revolver, $290 million first lien term loan and $105 million second lien term loan.

“These two rated transactions showcase Golub Capital’s capabilities as a leading broadly syndicated loan arranger,” said Jason Van Dussen, Senior Managing Director, Co-Head of Capital Markets at Golub Capital. “We are pleased to provide the balance sheet and capital markets expertise to drive best-in-class execution for our partners.”

About Rough Country
Headquartered in Dyersburg, TN, Rough Country was one of the founders of the off-road industry and remains one of the fastest growing manufacturers and marketers of aftermarket suspension products and off-road accessories with a product portfolio covering ~90% of truck and Jeep models on the road. Rough Country offers best-in-class service and value to its enthusiast customer base, with same-day shipping, a 90-day satisfaction guarantee, and a lifetime replacement warranty. Learn more about Rough Country and its product offerings at www.roughcountry.com

About Confluence
As a leading global technology solutions provider to the investment management industry, Confluence helps clients solve complex investment data challenges across the front, middle and back office. From innovative portfolio analytics to regulatory and financial reporting solutions, Confluence invests in the latest technology and data and in its team of industry experts to meet the evolving needs of asset managers and service providers. Headquartered in Pittsburgh, PA, Confluence services over 400 clients in 40 countries, with locations across Europe, North America, South Africa, Australia and Asia. For more information, visit www.confluence.com.

Across its activities, Golub Capital nurtures long-term, win-win partnerships that inspire repeat business from private equity sponsors and investors. Founded over 25 years ago, Golub Capital today has over 550 employees and lending offices in Chicago, New York, San Francisco and London. For more information, please visit golubcapital.com.

Q2 2021 Earnings grew by 31% in April and May 2021 compared to April and May 2019.

The Golub Capital Altman Index can provide early insight into financial performance of public companies and GDP in advance of earnings season.

NEW YORK, July 13, 2021 – Golub Capital today published a special edition of the Golub Capital Middle Market Report for Q2 2021. The report compared the April and May 2021 revenue and earnings of middle market private companies in the Golub Capital Altman Index to revenue and earnings in April and May 2019. This analysis is intended to provide greater insight into economic conditions than the report’s typical year-over-year comparisons, which reflect the impact of Covid-related lockdowns in April and May 2020. The year-over-year data is provided in the appendix for continuity purposes.

Middle market private companies in the Golub Capital Altman Index experienced EBITDA growth of 31% and revenue growth of 21% in April and May 2021 compared to their April and May 2019 earnings and revenue. The data in this special edition report reflects the median performance of approximately 130 companies that were in the Golub Capital Altman Index in both periods.

Lawrence E. Golub, CEO of Golub Capital, said, “The U.S. economic boom continues in Q2. Revenue and earnings growth in April and May 2021 were remarkably strong relative to April and May 2019, which was also a strong period. The 21% revenue growth compared to the pre-Covid period is striking because we had been seeing soft year-over-year revenue growth rates for the last several quarters. This indicates that growth in the second quarter is not just a recovery from Covid; it’s a reflection of a booming economy.”

Dr. Edward I. Altman said, “Our analysis looks at growth rates on a company-by-company basis, giving us a clean comparison of the ongoing boom to the strong pre-Covid economy of 2019. We think it is challenging to extract insight from year-over-year growth rates given the significant shutdown in April and May 2020. That said, it is notable that the Technology sector experienced year-over-year revenue and earnings growth in excess of 20%, as shown in the appendix. These companies generally were not impacted by Covid-related lockdowns, so we believe their strong year-over-year growth reflects fundamental strength as opposed to an ‘easy comp’ to the Covid period. The Technology companies in the Golub Capital Altman Index primarily serve the B2B market, so we expect strong growth to continue as companies invest in productivity-enhancing solutions in anticipation of potentially higher labor costs.”

About the Golub Capital Middle Market Report
The Golub Capital Middle Market Report analyzes the results of the Golub Capital Altman Index (“GCAI”), which measures the median revenue and earnings growth of more than 150 privately owned companies in the Golub Capital loan portfolio for the first two months of each calendar quarter. It compares these results to the U.S. gross domestic product, and the financial performance of well-known market indexes, including the S&P 500 and S&P SmallCap 600. The GCAI is produced by Golub Capital in collaboration with credit expert Dr. Edward I. Altman.

NEW YORK, July 12, 2021 – Golub Capital today announced record originations in the second quarter of 2021, signing up over $9 billion in retained and syndicated commitments and completing over 95 new and add-on transactions. Originations in the quarter were 30% higher than the fourth quarter of 2020, the Firm’s previous record quarter.

“Golub Capital is firing on all cylinders in this post-Covid period, reflecting the power and the resilience of our award-winning, market-leading sponsor finance business,” said David Golub, President of Golub Capital.

Second quarter financings ranged in size from $10 million to in excess of $2 billion and included both syndicated and buy-and-hold unitranche transactions.

“Our ability to complete over 95 transactions this quarter is a testament to the deep relationships we have with leading sponsors, the expertise and discipline of our team and the reliable, distinctive and compelling financing options we offer borrowers,” said Greg Cashman, Head of Direct Lending at Golub Capital.

With this high level of second quarter activity, Golub Capital also announced its capital under management now exceeds $40 billion.

Across its activities, Golub Capital nurtures long-term, win-win partnerships that inspire repeat business from private equity sponsors and investors. Founded over 25 years ago, Golub Capital today has over 550 employees and lending offices in Chicago, New York, San Francisco and London. For more information, please visit golubcapital.com.

Since 2003, the Board Fellows program has matched 744 MBA students with 223 Chicago-area nonprofits

CHICAGO – April 22, 2021 – Northwestern University’s Kellogg School of Management has received a $3.5 million gift from Golub Capital to sponsor its Board Fellows program for five years and create a second Golub Capital Social Impact Lab. The gift is designed to enhance the existing Board Fellows program, facilitate more advanced social impact research and share the program’s learnings and expertise with a broader network of leading business schools.

The Board Fellows program, to be named the Golub Capital Board Fellows Program, is a 20-month curriculum that prepares 100 top Kellogg MBA students annually for board service at Chicago-area nonprofits through a combination of academic coursework, board placement and strategic consulting.

The Golub Capital Social Impact Lab will recruit eight Golub Capital Postdoctoral Fellows to Kellogg over five years, creating a “think tank” that works with the MBA students in the Board Fellows program. Golub Capital Postdoctoral Fellows will also collaborate with faculty members across different Kellogg departments on a range of social impact-related research and help export the program to other business schools.

“For nearly 20 years, Kellogg students have meaningfully contributed to the missions of Chicago-area nonprofits through our Board Fellows program,” said Dean Francesca Cornelli. “Golub Capital’s generous gift will help us understand better how board members of nonprofits can provide even more value to these organizations and those served by them.”

Golub Capital is a market-leading direct lender and credit asset manager with over $35 billion of capital under management. The firm employs more than 320 people in Chicago.

“Golub Capital is building a network of social impact labs at leading U.S. business schools. Our goal is to harness the power of these leading academic institutions to enhance the effectiveness of nonprofits,” said David Golub, President of Golub Capital. “Kellogg’s best-in-class program to teach MBAs and alumni how to be excellent nonprofit board members made for an ideal fit for our impact philanthropy effort.”

Golub Capital also sponsored the launch of the Golub Capital Social Impact Lab at Stanford Graduate School of Business, which was established in 2019.

Angela Lee, the Mechthild Esser Nemmers Professor of Marketing, will serve as the faculty champion for the Golub Capital Social Impact Lab at Kellogg, working with the postdoctoral fellows to guide their research, facilitate faculty connections and intellectual exchange via workshops and conferences.

“This gift gives us a terrific opportunity to further enhance our existing program model by bridging research and practice,” Lee said. “Not only will this allow us to build an even more effective program for MBA students, it will also promote and support new social impact research.”

Since 2003, the Kellogg Board Fellows program has prepared 744 Board Fellows for civic leadership and served 223 unique Chicago-area nonprofits. Nonprofit partners include Chicago Cares, Howard Brown Health, The Night Ministry and Ronald McDonald House Charities of Chicagoland & NW Indiana.

With the creation of this Golub Capital Social Impact Lab, Kellogg students will have access to more advanced research and quantitative practices, enabling them to take on even more rigorous projects and deliver greater impact for nonprofit partners.

“Howard Brown Health has benefited for four years from the contributions of the exceptional MBA talent provided by the Kellogg Board Fellows program,” said David Ernesto Munar, President and CEO of Howard Brown Health. “We are excited about how this new investment in the Board Fellows program can further enhance Howard Brown Health’s work providing health and wellness support to the LGBTQ community.”

From a student perspective, the chance to be a part of the Board Fellows program is more compelling than ever.

“The Board Fellows program is one of the primary reasons I came to Kellogg. To me, this program demonstrates Kellogg’s commitment to developing civically-minded leaders who are equipped to drive positive change in their communities,” said Dani Lubin-Levy, a current MBA student and president of the Board Fellows’ student leadership team. “This gift will accelerate the impact the Board Fellows program is having on the organizations we serve.“

The Golub Capital gift counts toward We Will. The Campaign for Northwestern. The funds raised through the ”We Will” Campaign are helping realize the transformational vision set forth in Northwestern’s strategic plan and solidifying the University’s position among the world’s leading research universities. More information on We Will. The Campaign for Northwestern is available at wewill.northwestern.edu.

About Golub Capital
Golub Capital is a market-leading, award-winning direct lender and credit asset manager, with over $35 billion of capital under management. Golub Capital specializes in delivering reliable, creative and compelling financing solutions to middle market companies backed by private equity sponsors. The firm’s credit expertise also forms the foundation of its Late Stage Lending business and its Broadly Syndicated Loan investment program. Across its activities, Golub Capital nurtures long-term, win-win partnerships that inspire repeat business from its private equity sponsor clients and investors. Founded over 25 years ago, Golub Capital today has over 500 employees and lending offices in Chicago, New York, San Francisco and London. For more information, please visit golubcapital.com.

The Golub Capital Altman Index can provide early insight into the financial performance of public companies and GDP in advance of earnings season.

NEW YORK, April 13, 2021 – Middle market private companies in the Golub Capital Altman Index experienced year-over-year earnings growth of 16.3% and revenue growth of 3.2% during the first two months of the first quarter of 2021. This compares to year-over-year earnings growth of 14.9% and revenue growth of 2.9% in the fourth quarter of 2020. This is the last comparison of post-Covid profit performance to a completely pre-Covid period, and the growth rate demonstrates very meaningful economic strength in the U.S. middle market.

Lawrence E. Golub, CEO of Golub Capital, said, “The U.S. economy is booming outside of directly Covid-damaged sectors. Earnings growth in the first quarter was the strongest in the history of the Golub Capital Altman Index. Profit growth accelerated even though revenue growth was soft in aggregate and slightly negative in the Consumer and Healthcare sectors. This remarkable margin expansion suggests that companies made smart decisions in cutting costs and adapting strategically to Covid.”

Dr. Edward I. Altman said, “This quarter’s Golub Capital Middle Market Report is the last time we’ll have a clean comparison between current conditions, in January and February 2021, and the pre-Covid economy in January and February 2020. Our data likely understates the strength of the first quarter of 2021 as a whole; it doesn’t capture the negative impact of shutdowns in March 2020. While profit growth was robust across all sectors of the Golub Capital Altman Index, the results for Industrials stand out. Strong demand and a weaker U.S. dollar led to the second-strongest quarter for Industrial sector profit growth since inception of the Index in 2013. Our data suggests that the U.S. middle market, outside of heavily Covid-impacted sectors, has powerful momentum.”

About the Golub Capital Middle Market Report
The Golub Capital Middle Market Report analyzes the results of the Golub Capital Altman Index (“GCAI”), which measures the median revenue and earnings growth of more than 150 privately owned companies in the Golub Capital loan portfolio for the first two months of each calendar quarter. It compares these results to the U.S. gross domestic product, and the financial performance of well-known market indexes, including the S&P 500 and S&P SmallCap 600. The GCAI is produced by Golub Capital in collaboration with credit expert Dr. Edward I. Altman.