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 $8.2 billion portfolio across 424 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 diversified by industry and obligor, limiting idiosyncratic risk.

• Non-accrual rate is 1.9% of total portfolio at fair value, with low exposure to junior debt and equity investments.

• Leverages Golub Capital’s $90+ billion platform, extensive sponsor relationships, and deep industry expertise.

Credit performance and risk management

• Long-term track record of low defaults and credit losses, with a 0.05% annualized loss rate since IPO, outperforming peer BDCs.

• Rigorous underwriting and proactive credit monitoring enable early detection and management of borrower issues.

• Top-ranked underwriting performance among public BDCs, as recognized by Raymond James and Moody’s.

• Software lending expertise with over 1,000 transactions and a 0.05% default rate in the software portfolio.

• AI risk is actively monitored, with dedicated diligence and third-party assessments for software investments.

Structural and financial advantages

• Maintains a conservative capital structure with 1.23x net debt-to-equity and investment grade ratings (Baa2/BBB-/BBB).

• Diverse funding sources include securitizations, unsecured notes, and bank facilities, supporting flexible capital management.

• Fee structure is among the most shareholder-friendly in the BDC sector, with low management and incentive fees and a high hurdle rate.

• Strong shareholder alignment through insider ownership (~9%), share repurchase programs, and below-market advisor revolver.

• NAV accretive mergers with affiliated BDCs have increased scale and liquidity.