Golub Capital BDC (GBDC) investor relations material

Investment strategy and portfolio overview

• Focuses on first lien, senior secured floating rate loans to private equity-backed middle market companies with $10–100 million EBITDA, emphasizing recession-resilient sectors like software, healthcare, and financial services.

• Maintains a diversified $8.3 billion portfolio across 420 companies, with a median portfolio company EBITDA of $75 million and an average investment size of 0.2%.

• Portfolio is 92% first lien, 99% floating rate, and highly granular, limiting idiosyncratic risk.

• Internal performance ratings show over 89% of investments performing at or above expectations.

• Non-accrual rate is 1.4%, well below the BDC sector average.

Competitive advantages and market positioning

• Leverages Golub Capital’s $90+ billion platform, 1,100+ employees, and 420+ private equity sponsor relationships.

• Recognized as a top 3 middle market bookrunner for 15 consecutive years and multi-year award winner for lending excellence.

• Acts as lead lender in approximately 90% of deals, controlling pricing, structure, and monitoring.

• Extensive investment team with deep sector expertise, closing over 980 software/tech, 660 diversified industry, and 490 consumer/retail transactions since 2013.

• Maintains a differentiated core middle market focus compared to peers, with a median portfolio company EBITDA of $75 million.

Credit performance and risk management

• Long-standing track record of low default rates: 0.93% long-term default rate vs. 1.96% for the leveraged loan index.

• Annualized net loss rate since IPO is (0.03%), outperforming the peer average of (1.28%).

• Rigorous underwriting and credit monitoring infrastructure, with proactive management of borrower performance issues.

• Top-ranked BDC for underwriting performance, with cumulative default rates consistently better than industry averages.

• Portfolio is more conservatively positioned than peers, with higher first lien composition and greater obligor diversification.