Middle Market CLO Manager of the Year — Golub Capital
Golub Capital has won the GlobalCapital 2020 awards for Middle Market CLO Manager of the Year and Middle Market CLO Deal of the Year. These awards continue the firm’s long track record of market leadership in middle market CLOs. They also reflect the power and resilience of Golub Capital’s sponsor finance platform through the Covid-19 crisis. The firm has been the top middle market CLO issuer by volume for the past eight years, according to Creditflux data.
“We are pleased to be recognised for our performance in an exceptionally challenging year,” says Craig Benton, head of structured products at Golub Capital. “CLO managers were put to the test in 2020. We are proud of our results, and we thank investors in our securitizations for their confidence and support.”
Golub Capital credits its consistent success to the competitive advantages of its market-leading, award-winning sponsor finance platform. With over $35bn of capital under management1 and over 550 employees as of March 31, 2021, of whom over 140 are investment professionals, Golub Capital can offer a range of distinctive financing solutions it believes few can match.
The firm cites its impressive rate of repeat business from private equity sponsors as evidence of the value it delivers for its partners: over 210 private equity sponsors have done multiple deals with Golub Capital, and since 2015, over 85% of the firm’s new commitments were to finance transactions for repeat private equity firms.
“Our ability to provide sponsor clients with reliable, creative and compelling financing solutions across a range of deals means that we have a wide funnel of investment opportunities to choose from,” says Benton. “Strong deal flow, combined with our proven underwriting process, enables us to curate securitization portfolios with consistently strong credit performance.”
Golub Capital focuses on lending to companies with predictable, stable revenue in resilient industries where the firm has extensive expertise, including software and technology, healthcare and business services. This strategy put Golub Capital in a strong position to navigate the pandemic. Benton says that, for the vast majority of the portfolio, it was business as usual despite Covid-19, and sponsors were very engaged and supportive of their borrowers. Benton and his team were also proactive in providing transparency to investors during this time.
“I can’t tell you the number of detailed calls and video chats we had in 2020 walking investors through our view of the market and the portfolio,” says Benton. “That candid dialogue, combined with strong results, gave us a lot of credibility with our investors.”
Investor confidence in Golub Capital was reflected in the firm’s strong access to the securitization market during the pandemic. Despite market turbulence, Golub Capital brought over $3bn of issuance to the market in 2020. The firm’s momentum has continued into 2021, with over $5bn of issuance year-to-date, as of June 2021. GC