Golub Capital has announced the launch of its GP-Led Secondaries investment strategy, marking a significant expansion in its investment approach. This new strategy is designed to focus on high-quality middle-market businesses in both the U.S. and Europe. The primary mechanism for these investments will be through GP-Led continuation vehicles, which allow general partners of private equity funds to extend the life of their funds and offer additional investment opportunities.
This GP-Led strategy enhances Golub Capital’s existing direct lending operations. The firm plans to utilize its competitive advantages in this new initiative. Notably, Golub Capital has built strong relationships with various private equity firms and has established partnerships with over 650 borrowers. Furthermore, the extensive expertise of its team, consisting of more than 1,100 professionals, plays a vital role in executing this strategy successfully.
The introduction of the GP-Led Secondaries strategy will also expand Golub Capital’s current equity co-investment program. Over the last two decades, the firm has been active in making over 400 equity co-investments in private equity transactions. They have invested more than $1.7 billion in these deals and have consistently achieved returns that outperform industry benchmarks, showcasing their expertise and strategic approach.
In connection with this new initiative, Golub Capital has committed over $1 billion to the GP-Led Secondaries strategy. Additionally, the firm plans to raise special-purpose funds to support and expand this commitment, indicating a strong belief in the potential of this investment avenue.
To lead the GP-Led Secondaries team, Golub Capital has appointed Greg Cashman, who serves as Co-Head of the Firm’s Direct Lending business. Cashman’s leadership is expected to drive the success of this new strategy, given his extensive experience and knowledge in the field. This strategic move positions Golub Capital to take advantage of growth opportunities in the middle-market sector while enhancing its overall investment portfolio.
KEY QUOTE:
“We see our GP-Led Secondaries business as a natural extension of our direct lending franchise. We have conviction we will be successful here due to the power of the Golub Capital platform, including strong relationships with private equity sponsors, a strong underwriting process, and deep industry expertise.”
David Golub, President of Golub Capital
