Golub launches new fund with $1 bln target

  • Golub expected to hold first close soon
  • New mid-market lending fund has 1.25 pct management fee
  • Fund to back companies with up to $60 mln EBITDA

Golub Capital is raising a middle-market lending fund with a $1 billion target, according to documents published by New Mexico State Investment Council. The fund is expected to hold quarterly closings over the next 18 months with a final close scheduled for mid-2018.

Golub Capital Partners 11’s investment strategy will be similar to that of the firm’s previous funds, the documents show. The same documents indicate the fund will provide debt to mid-market healthcare, technology and specialty-retail companies with $10 million to $60 million of EBITDA.

In a statement, Golub spokeswoman Meghan Womack said the firm may commit capital to companies with up to $100 million EBITDA.

Golub loans typically have a floating interest rate, which mitigates the firm’s exposure to rising rates, the documents say.

The firm will charge investors a 1.25 percent management fee on drawn commitments and collect 20 percent of Fund 11’s profits as carried interest, New Mexico investment memos show. The fund also is offering LPs unspecified preferred return and clawback provisions.

Golub’s middle-market lending team is led by Andrew Steuerman, a former managing director at Albion Alliance. Gregory Cashman, who previously worked at Bristol-Myers Squibb and Arthur Andersen, is senior managing director on the team.

Golub Capital is led by brothers David Golub and Lawrence Golub, the latter of whom founded the firm in 1994. David Golub joined the firm in 2003.

Golub Capital has offices in Chicago, New York, San Francisco and Davidson, North Carolina. The firm manages close to $18 billion of credit assets and employs almost 300 people, New Mexico documents say.

UPDATE: The story was updated to include information from Golub Capital. 

Action Item: For more information about Golub Capital, go to www.golubcapital.com

Photo of Lawrence Golub courtesy of Golub Capital