Golub Capital BDC has provided a total of $97.1 million in new mid-market debt and equity investments over the quarter ending 31 March, the firm said on Monday.
Senior secured loans made up the majority, or 57 percent, while 42 percent were one-stop loans, similar to unitranche investments, and 1 percent was equity securities, according to a US Securities and Exchange Commission filing made Monday. Of the total, the New York-based business development company had funded $94.7 million at close, the SEC document states.
Total investments at fair value increased by approximately 2.2 percent, or $37.7 million, from $1.7 billion to $1.74 billion, during the three months ended 31 March. That figure factors in debt repayments, sales of securities, net fundings on revolvers and net change in unrealised gains.
In addition to the $97.1 million, Golub BDC invested $8.9 million in Senior Loan Fund, which is co-managed by the BDC and RGA Reinsurance Company, during the first three months of the year. The SLF invests in senior secured loans.
Golub BDC’s total originations for Q1 2017 slightly trail those during the last quarter of 2016. For the quarter that ended 31 December, the BDC’s new originations totaled $113.6 million, with 70 percent of that total in one-stop deals, according to its February earnings call.
David Golub, chief executive officer at the BDC, said on the call that Golub had weathered an increasingly difficult market that went from a lender-friendly environment to a borrower-friendly one last year.
And though there have been signs of an optimistic credit market since the November US presidential election, Golub pointed out other less-than-encouraging signs for the mid-market this year. Those factors included a combination of low productivity growth and increasing wages that squeezes corporate profit margins.
“We got a situation where Mr. Market is optimistic, but I think the data argues for caution,” he said then.
Golub Capital has over $20 billion of capital under management across its platforms, the filing shows.