Press Release - Golub Capital

HARTFORD, Conn., and NEW YORK, June 3, 2024 – Nassau Financial Group (“Nassau”), a leading provider of fixed annuities and asset management, and Golub Capital, a market-leading direct lender and experienced credit asset manager, today announced they have signed a definitive agreement to enter into a strategic partnership.

As part of this strategic partnership, Nassau will receive a $200 million minority non-voting common equity investment from Golub Capital. This investment provides capital to support Nassau’s growth strategy, including through organic growth and acquisitions, and further strengthens its balance sheet. Nassau and Golub Capital also will enter into a long-term Investment Management Agreement that will provide Nassau’s insurance subsidiaries with access to Golub Capital’s middle market direct lending strategies, through tailored capital-efficient solutions.

“We are excited to expand our investor group as we begin a new strategic partnership with Golub Capital,” said Phil Gass, Chairman and CEO of Nassau. “In addition to their significant capital investment, Golub Capital brings a market-leading track record in direct lending that will expand our balance sheet investment capabilities in support of our continued growth.”

“Nassau has built an outstanding annuities business, and we are excited to be a part of the next chapter of its growth. This partnership also represents another key milestone in our Insurance Solutions efforts,” said David Golub, President of Golub Capital. “We are delighted to provide Nassau with both capital-efficient investment solutions in our market-leading direct lending capabilities and strategic capital.”

With this transaction, Golub Capital will be the largest minority equity holder in Nassau, following investments from Fortress Investment Group in 2023 and Wilton Reassurance Company and Stone Point Credit in 2021. Nassau was founded with an initial capital commitment along with subsequent growth capital provided by Golden Gate Capital, which remains Nassau’s majority controlling equity holder.

Goldman Sachs served as exclusive financial advisor and Sidley Austin LLP served as legal advisor to Nassau. Morgan Stanley & Co. LLC served as exclusive financial advisor and Kirkland & Ellis and Foley Hoag served as legal advisors to Golub Capital.

The transaction is expected to close in the second half of 2024 and is subject to customary closing conditions, including receipt of regulatory approvals.

About Nassau Financial Group
Based in Hartford, Connecticut, Nassau Financial Group is a growth-focused financial services company with insurance and asset management businesses. A leading fixed annuity insurance carrier, Nassau provides comprehensive and customizable retirement solutions, delivered with advanced digital capabilities and industry-leading service. Nassau Asset Management oversees the assets of Nassau’s insurance companies and offers its specialty investment strategies to third-party clients. These strategies include public and private debt, CLO debt and equity, real estate debt and equity, and alternatives.

Nassau was founded in 2015 and has grown to $24 billion in assets under management and $1.6 billion in total adjusted capital, and about 379,000 policies and contracts as of March 31, 2024. For more information, visit nfg.com.

About Golub Capital
Golub Capital is a market-leading, award-winning direct lender and experienced credit asset manager. 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 Broadly Syndicated Loan and Credit Opportunities investment programs. Golub Capital nurtures long-term, win-win partnerships that inspire repeat business from private equity sponsors and investors.

As of April 1, 2024, Golub Capital had over 925 employees and over $70 billion of capital under management, a gross measure of invested capital including leverage. The Firm has offices in North America, Europe and Asia. For more information, please visit golubcapital.com

LONDON, May 28, 2024 — Golub Capital participated as a Lender on a unitranche facility to support Permira’s acquisition of GGW Group. Existing owner Hg, a leading investor in European and transatlantic software and services businesses, will retain a co-controlling stake. Additional terms of the deal were not disclosed.

GGW Group is one of the leading European insurance brokerage platforms for small and medium-sized enterprises. It was formed with Hg’s support in 2020.

The unitranche facility is composed of a term loan, delayed draw term loan and a revolving credit facility.

Golub Capital has completed more than 20 insurance brokerage transactions since 2018. This is the Firm’s first transaction with Permira.

About Golub Capital Sponsor Finance
Golub Capital is a market-leading, award-winning direct lender and experienced credit asset manager. We specialize 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 up to $700 million and arranges syndicated credit facilities up to $2 billion.

As of January 1, 2024, Golub Capital had over 875 employees and over $65 billion of capital under management, a gross measure of invested capital including leverage. For more information, please visit golubcapital.com.

About GGW Group
The GGW Group is a group of highly qualified and owner-managed insurance brokers, bundled under the umbrella brand LEADING BROKERS UNITED, and high-profile MGA´s, bundled under WECOYA UNDERWRITING. The independence and entrepreneurial freedom of the individual companies and the bundling of their expertise, which has grown over 265 years, are key features of the GGW Group. The GGW Group was founded at the beginning of 2020, has since acquired more than 50 partner companies and employs today more than 1,700 people. The company is headquartered in Hamburg.

About Permira
Permira is a global investment firm that backs successful businesses with growth ambitions. Founded in 1985, the firm advises funds with total committed capital of approximately €80bn and makes long-term majority and minority investments across two core asset classes, private equity and credit. The Permira private equity funds have made approximately 300 private equity investments in four key sectors: Technology, Consumer, Healthcare and Services.

The Permira funds have an extensive track record in the Services sector, having invested more than €12bn in 40 high growth companies across a range and industry verticals, including industrial, financial and business services. Permira employs over 500 people in 15 offices across the United States, Europe and Asia.

The Permira funds have previously backed and helped scale some of the largest and fastest-growing tech-enabled services businesses globally, including Safti, Klarna, Alter Domus, Tricor, Kroll, Relativity and Lytx. For more information, visit www.permira.com.

About Hg
Hg supports the building of sector-leading enterprises that supply businesses with critical software applications or workflow services, delivering a more automated workplace for their customers.

This industry is characterised by digitization trends that are in early stages of adoption and are set to transform the workplace for professionals over decades to come. Hg’s support combines deep end-market knowledge with world class operational resources, together providing compelling support to entrepreneurial leaders looking to scale their business – businesses that are well invested, enduring and serve their customers well.

With a vast European network and strong presence across North America, Hg’s 400 employees and around $70 billion in funds under management support a portfolio of around 50 businesses, worth over $140 billion aggregate enterprise value, with around 110,000 employees, consistently growing revenues at more than 20% annually. Additional information is available at www.hgcapital.com.

LONDON, May 13, 2024 — Golub Capital acted as Sole Lender on a recurring revenue facility for Matrix42. The proceeds will be used to support the acquisition of Efecte Plc (“Efecte”) in a take private transaction.

Matrix42 is a leading provider of innovative solutions for digital workspace experience management, unified endpoint management and enterprise service management, and has been a portfolio company of Corten Capital since 2021. Efecte helps people digitalize and automate their work. The use cases for Efecte’s solutions range from IT service management and ticketing to improving employee experiences, business workflows and customer service. The acquisition will be transformative for Matrix42 and creates a leading European player in the service management market.

Golub Capital has acted as Sole Lender to Matrix42 and Corten Capital in two previous transactions.

About Matrix42
Matrix42 is a leading provider of innovative solutions for digital workspace experience management, unified endpoint management, and enterprise service management. The company’s products and services empower organizations to improve IT efficiency, enhance end-user productivity, and enable digital transformation. With over 25 years of experience and a customer base spanning across various industries and regions, Matrix42 is trusted by enterprises worldwide for its reliable and comprehensive solutions.

About Efecte
Efecte helps people digitalize and automate their work. Customers across Europe leverage Efecte’s cloud service to operate with greater agility, to improve the experience of end-users, and to save costs. The use cases for Efecte’s solutions range from IT service management and ticketing to improving employee experiences, business workflows, and customer service. Efecte is the European alternative to the global goliaths in Efecte’s space. Efecte’s headquarters is located in Finland and Efecte has regional hubs in Germany, Poland, Spain and Sweden.

About Corten Capital
Corten Capital is a specialist investment firm that partners with entrepreneurial management teams to build market leading, B2B software, services and information companies across Europe and North America. Corten is backed by an exceptional group of university endowments, charitable foundations and family offices from North America, Europe, and Asia, who share its philosophy of investing for long term value creation through growth and innovation. Corten Advisors UK LLP is authorised and regulated by the Financial Conduct Authority in the UK.

LONDON, May 7, 2024 — Golub Capital acted as Sole Lender on a recurring revenue facility to support Marlin Equity Partners’ investment in Treasury Intelligence Solutions (“TIS”). The proceeds will be used to refinance existing debt and fund strategic initiatives. Additional terms of the deal were not disclosed.

TIS is a cloud platform for treasury and finance teams to manage global payments, cashflow, security and compliance functions. The Company is based in Germany.

The recurring revenue facility is composed of a revolving credit facility and a senior term loan.

This is the first European transaction Golub Capital has completed with Marlin Equity Partners.

About Treasury Intelligence Solutions (TIS)
TIS helps Chief Financial Officers, treasurers and finance teams transform their global cash flow, liquidity and payment functions. Since 2010, the award-winning cloud-native platform and robust service model have empowered the entire office of the CFO to collaborate more effectively and attain maximum efficiency, automation and control. With over 11,000 banking options, $80 billion in daily cash managed, and $2.7 trillion in annual transaction volume, TIS has a proven track record of combining our extensive market expertise with tailored client and community feedback to drive digital transformation for companies of all sizes and industries. For more information, please visit www.tispayments.com.

About Marlin Equity Partners
Marlin Equity Partners is a global investment firm with approximately $9 billion in capital commitments. The firm is focused on providing corporate parents, shareholders and other stakeholders with tailored solutions that meet their business and liquidity needs. Marlin invests in businesses across multiple industries where its capital base, industry relationships and extensive network of operational resources significantly strengthen a company’s outlook and enhance value. Since its inception, Marlin, through its group of funds and related companies, has successfully completed over 200 acquisitions. The firm is headquartered in Los Angeles, California, with an additional office in London. For more information, please visit www.marlinequity.com.

The Firm was named Private Credit CLO Manager of the Year and was also awarded Best Performing Private Credit CLO of the Year for Golub CLO 69(M)

NEW YORK, May 2, 2024 – Golub Capital was named Private Credit CLO Manager of the Year and was also awarded Best Performing Private Credit CLO of the Year for Golub CLO 69(M) at this year’s DealCatalyst U.S. CLO Awards. Winners were selected by members of the LSTA, the premiere trading association for all participants in the U.S. loan market. Golub Capital was honored at the Annual CLO Industry Conference held in New York City this week.

“We are honored to be recognized by our industry peers in these two prestigious categories,” said Alan George, Managing Director, Head of Structured Products at Golub Capital. “Since issuing our first CLO in 2005, we have remained focused on being a leading provider of CLOs and innovative financing solutions through all market cycles.”

The DealCatalyst U.S. CLO Industry Awards were launched in 2023, in partnership with LSTA to highlight the excellence in the industry over the past year. Once finalists in each category were selected, DealCatalyst was able to collect over 570 votes to ensure an accurate reflection of the opinions held by CLO managers, investors and the many service providers in the CLO market.

Golub Capital was previously named Middle Market CLO Manager of the Year in 2023.

About Golub Capital
Golub Capital is a market-leading, award-winning direct lender and experienced credit asset manager. We specialize in delivering reliable, creative and compelling financing solutions to companies backed by private equity sponsors. Our sponsor finance expertise also forms the foundation of our Broadly Syndicated Loan and Credit Opportunities investment programs. We nurture long-term, win-win partnerships that inspire repeat business from private equity sponsors and investors.

LONDON, May 1, 2024 — Golub Capital acted as Joint Lead Arranger on a unitranche facility to support the refinancing of RLDatix by Five Arrows, TA Associates (“TA”) and Nordic Capital. Terms of the deal were not disclosed.

RLDatix is a specialty healthcare governance, risk, compliance and workforce management software provider. It has been a portfolio company of Five Arrows since 2013 and TA since 2018. Nordic Capital made a growth investment in the Company in 2022.

The unitranche facility is composed of a revolving credit facility, unitranche facilities, and a delayed draw term loan.

Golub Capital has been a lender to RLDatix since 2021, supporting the Company through four additional transactions.

About RLDatix
RLDatix is on a mission to improve healthcare by enabling a world where patients receive the best and safest care possible. Trusted by thousands of clients around the world, our connected healthcare operations platform combines software and trusted services to empower organizations with critical data insights across risk, safety, compliance, provider lifecycle and workforce management. Our user-centric approach provides a holistic, real-time view of healthcare operations, connecting disparate information across the enterprise – thus giving organizational leadership the contextualized data they need to make better informed decisions.

About Five Arrows
Five Arrows is the alternative assets arm of Rothschild & Co and has €26 billion AuM with offices in Paris, London, New York, Los Angeles, San Francisco and Luxembourg. With over €9 billion of assets under management, the corporate private equity business of Five Arrows is focused on investing in companies with highly defensible market positions; strong management teams; business models with high visibility of organic unit volume growth and strong unit economics; and multiple operational levers that can be used to unlock latent value. Sectors are limited to data & software, technology-enabled business services and healthcare. For more information, please visit www.rothschildandco.com/en/five-arrows/corporate-private-equity.

About TA
TA is a leading global private equity firm focused on scaling growth in profitable companies. Since 1968, TA has invested in more than 560 companies across its five target industries—technology, healthcare, financial services, consumer and business services. Leveraging its deep industry expertise and strategic resources, TA collaborates with management teams worldwide to help high-quality companies deliver lasting value. The firm has raised $65 billion in capital to date and has over 150 investment professionals across offices in Boston, Menlo Park, Austin, London, Mumbai and Hong Kong. More information about TA can be found at www.ta.com.

About Nordic Capital
Nordic Capital is a leading sector-specialist private equity investor with a resolute commitment to creating stronger, sustainable businesses through operational improvement and transformative growth. Nordic Capital focuses on selected regions and sectors where it has deep experience and a long history. Focus sectors are Healthcare, Technology & Payments, Financial Services, and Industrial & Business Services. Key regions are Europe and globally for Healthcare and Technology & Payments investments. Since inception in 1989, Nordic Capital has invested over EUR 25 billion in more than 145 investments. The most recent entities are Nordic Capital XI with EUR 9.0 billion in committed capital and Nordic Capital Evolution with EUR 1.2 billion in committed capital, principally provided by international institutional investors such as pension funds. Nordic Capital Advisors have local offices in Sweden, the UK, the US, Germany, Denmark, Finland, Norway, and South Korea. For further information about Nordic Capital, please visit www.nordiccapital.com.

NEW YORK, April 30, 2024 – Golub Capital today announced the final close of its sixth credit opportunities fund, GEMS Fund 6, L.P. (“the Fund” or “Fund 6”), with $2 billion of investable capital.

Fund 6 is the largest Golub Capital Credit Opportunities fund to-date. Commitments were in excess of the target fundraise and came from a diverse range of global institutional and private wealth investors across North America, Europe, the Middle East and Asia.

“We have a proven track record in Credit Opportunities with five successful predecessor funds over the past 17 years,” said David Golub, President of Golub Capital. “We are deeply grateful to all of our existing and new investors, who have shown confidence in our ability to find attractive credit opportunities across market cycles.”

The Golub Capital Credit Opportunities team focuses on a series of credit and credit-related sub-strategies in areas related to the Firm’s market-leading direct lending franchise, including stressed middle market loans, credit fund secondaries, NAV loans, CLO liabilities, preferred stock and other liquidity solutions for sponsor-backed companies.

With a dedicated strategy since 2007, Golub Capital Credit Opportunities leverages the full breadth of the Golub Capital platform’s capital markets, leveraged finance, sales and trading, broadly syndicated loan and direct lending expertise including the ability to identify mispriced value while maintaining a relentless focus on downside protection.

About Golub Capital

Golub Capital is a market-leading, award-winning direct lender and experienced credit asset manager. We specialize in delivering reliable, creative and compelling financing solutions to companies backed by private equity sponsors. Our sponsor finance expertise also forms the foundation of our Broadly Syndicated Loan and Credit Opportunities investment programs. We nurture long-term, win-win partnerships that inspire repeat business from private equity sponsors and investors.

NEW YORK, April 29, 2024 – Golub Capital today announced the launch of its Insurance Solutions team, a group of dedicated insurance and asset management professionals who will expand the way the Firm works with insurance company partners. Jennifer Potenta has joined the Firm to lead this newly formed team as Managing Director, Head of Insurance Solutions.

Golub Capital has over 17 years of experience providing investment solutions for insurance company clients and over 120 insurance clients across debt and equity. Golub Capital also offers insurance companies flexible, strategic capital. The launch of the Insurance Solutions team is another key milestone in the Firm’s multi-year plan to expand and evolve the Investor Partners Group to meet the specialized investment needs of different investor segments globally.

“Insurance Solutions will be dedicated to cementing our reputation with insurance companies as both a best-in-class asset manager partner and a provider of strategic capital,” said Craig Benton, Senior Managing Director, Head of the Investor Partners Group at Golub Capital. “Jennifer’s deep expertise in understanding how to build a business that meets the specialized investment needs of insurance companies will be a valuable addition as we continue to raise the bar in how we partner with insurers.”

Jennifer Potenta brings over 20 years of industry experience to Golub Capital. She was previously a Senior Managing Director and the Global Head of Private Fixed Income and Alternatives at MetLife Investment Management, where she specialized in managing the assets of insurance companies and was responsible for a more than $120 billion portfolio of private debt and equity investments.

“Golub Capital has a recognized reputation as a strategic capital partner and I am delighted to be joining the Firm to help drive this next phase of growth,” said Jennifer Potenta, Managing Director, Head of Insurance Solutions at Golub Capital.

Golub Capital executed its inaugural insurance capital solutions transaction last year as one of the lead investors in Ruby Reinsurance Company (“Ruby Re”), a newly formed reinsurance sidecar vehicle sponsored by Reinsurance Group of America, Incorporated (“RGA”).

LONDON, April 24, 2024 —Golub Capital supported a unitranche facility for Miller Insurance. Proceeds will be used by existing investor GIC to grow the business and make new acquisitions. Terms of the deal were not disclosed.

Miller Insurance is one of the leading specialist insurance and reinsurance brokers operating through Lloyd’s, the London market and internationally. The Company was acquired by private equity firm Cinven and GIC, a global institutional investor, in 2021.

Golub Capital has completed more than 20 insurance brokerage transactions since 2018.

Companies have flexibility to manage the ongoing high interest rate environment

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

NEW YORK, April 9, 2024 – Middle market private companies in the Golub Capital Altman Index grew earnings by 11% during the first two months of the first quarter of 2024. Revenue grew 5% during the same period.

Lawrence E. Golub, CEO of Golub Capital, said, “Growth in Q1 2024 was solid and consistent with our expectations. A third consecutive quarter of double-digit EBITDA growth shows the continued strength and adaptability of private equity-owned middle market companies in today’s uncertain environment. The consistent fundamental earnings growth we’ve seen is giving companies valuable flexibility as they manage through this period of high interest rates. The strong performance reflected in the Golub Capital Altman Index for Q1 2024 offers investors an encouraging sign as they recalibrate their expectations for the trajectory of interest rates in the coming period. Resilient private equity-backed companies are attractively positioned even if the pace and magnitude of rate cuts fall short of the prevailing consensus.”

Dr. Edward I. Altman said, “The middle market showed strength in Q1 2024, with positive revenue and EBITDA growth in aggregate and across all subsectors of the Golub Capital Altman Index. Healthcare and Industrial businesses in our sample posted revenue and earnings growth of around 10% year-over-year, which suggests that well-managed businesses are weathering the ongoing tightness in labor markets. It isn’t surprising to see a fourth consecutive quarter of Technology earnings growth in excess of 20%, as mission-critical providers of productivity-enhancing enterprise software remain in high demand in this environment. In our view, the Golub Capital Altman Index for Q1 2024 is consistent with current consensus expectations of a ‘soft landing.’ That said, we believe investors would do well to focus on strategies designed to perform well across a range of scenarios.”

The Golub Capital Altman Index (“GCAI”), which is produced by Golub Capital in collaboration with 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 approximately 110–150 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 approximately 110–150 privately owned companies in the Golub Capital loan portfolio for the first two months of each calendar quarter. It compares these results to the 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. Effective Q2 2022, the Golub Capital Altman Index (GCAI) excludes Golub Capital portfolio companies that have recurring revenue-based credit facilities. The data referenced herein may not reflect all companies in the loan portfolio of Golub Capital during the time periods indicated.

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.