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 $8.6 billion portfolio across 420 companies, with a median portfolio company EBITDA of $76 million and an average investment size of 0.2%.

• Leverages Golub Capital’s $90+ billion platform, extensive sponsor relationships, and award-winning middle market lending franchise.

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

• Maintains a low non-accrual rate of 0.8%, well below sector averages.

Credit performance and risk management

• Demonstrates a long-term track record of low defaults and credit losses, with a 0.06% annualized gain rate since IPO and a payment default rate of 0.48%.

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

• Recognized as a top underwriter among public BDCs, with cumulative default rates consistently below industry averages.

• Portfolio is more conservatively positioned and diversified by obligor compared to peers.

• Focus on sponsor-backed lending, which historically results in lower default rates and better problem resolution.

Structural and financial advantages

• Operates with a gold standard fee structure: 1% base management fee, 15% incentive fee, and 8% hurdle rate, with strong insider ownership (~8%).

• Access to diverse and flexible debt capital, including securitizations, unsecured notes, and bank facilities, with a weighted average cost of debt of 5.4%.

• High proportion of floating rate debt capital (85%), mitigating interest rate risk.

• Maintains investment grade credit ratings (Moody’s: Baa2, S&P: BBB-, Fitch: BBB) and prudent leverage (1.23x debt-to-equity).

• NAV accretion achieved through mergers with affiliated BDCs, enhancing scale and shareholder value.