Golub Capital expands mid-market lending ranks

The firm added Chip Cushman from GE Antares to its middle-market lending team and has many more hires in the works, as it looks to seize on the opportunity created by GE Capital’s exit.  

Golub Capital has hired Chip Cushman as a managing director in mid-market lending. Based in Golub’s New York office, Cushman will be responsible for originating, underwriting, executing and monitoring investments across the New York and Washington, D.C. metro areas, Golub said in a statement today (15 May). He was previously a managing director at GE Antares, the lending arm of GE Capital that focuses on mid-market sponsor-backed transactions.

The firm plans to add twelve more people in mid-market lending and is looking at people both from GE Capital and other firms, David Golub (pictured), president at Golub Capital, told PDI. He declined to reveal their names or previous roles.

GE announced last month that it would be selling off most of GE Capital, its lending division. Several mid-market lenders, including Golub, have noted the opportunities created by the sale for other lenders. The alternative lenders reckon they can either acquire parts of GE’s portfolio, hire some of its people, or get preferential treatment on deals, as borrowers or sponsors might be reluctant to work with GE Capital as it goes through the sales process.

“GE’s long been our largest competitor and we anticipate that its exit from middle-market lending is going to create a significant opportunity for Golub Capital,” David Golub said on his BDC earnings call on 12 May. “What do sponsor clients today want? They want reliability, they want scale, they want to work with people that they know, they want to make sure those people are going to stick around. What they really like low-stress executions. It’s not so easy to have those attributes when you’re going through a sales process. So we’re already seeing an impact on our business from the GE sales process and we think the result will be that we’ll gain some market share. I’ll add that we’re in the process of adding a number of people across the firm to capitalize on this opportunity.”

At GE, Cushman was responsible for developing and maintaining relationships with private equity firms and originating and evaluating new lending opportunities, including first lien, second lien and unitranche loans. “[Chip] brings many years of hands-on experience and a thorough understanding of the direct lending environment, as well as a significant number of valuable sponsor relationships. He will be instrumental in our efforts to expand our business and provide unmatched reliability and service to our growing network of clients,” Andy Steuerman, head of middle-market and late stage lending at Golub, said in a statement.

Golub also announced that existing employees Matt Fulk and Craig Palmer will be taking on new roles in origination. Fulk and Palmer were previously in underwriting. “Matt and Craig have shown impressive leadership in their roles as underwriters at the firm, through which they have forged valuable relationships with our clients. Their new responsibilities will allow them to build on these important relationships and create new ones as Golub Capital continues to grow,” Steuerman said.