Golub Capital launches third BDC with $186m

GBDC 3 will mark the firm’s second private BDC after the initial private vehicle stopped accepting commitments from investors.

Golub Capital has launched its third business development company, a private vehicle that will join the New York-based publicly traded Golub Capital BDC (GBDC) and its private counterpart, Golub Capital Investment Corporation (GCIC).

The mid-market lender has raised $185.6 million for Golub Capital BDC 3 (GBDC 3), according to US Securities and Exchange regulatory filings. The vehicle will target investments ranging from $5 million to $30 million in mid-market companies with less than $100 million of EBITDA. The BDC will primarily invest in senior secured and unitranche loans, according to regulatory filings.

The firm declined to comment.

GBDC 3 comes six months after GCIC stopped accepting capital commitments. When it closed off subscriptions at the end of the first quarter, GCIC had received allocations of $1.3 billion, according to an investor presentation filed with the SEC.

The new BDC will charge a management fee of 1 percent on adjusted gross assets until any “liquidity event”, which would include an initial public offering or a sale of its assets, after which it will be 1.375 percent, according to regulatory filings. The incentive fee is a 15 percent carried interest assuming a liquidity event or 10 percent without a liquidity event.

GBDC and GCIC listed $1.86 billion and $1.36 billion, respectively, in total assets. The former reported a net asset value per share of $16.01 as of 30 June, while that figure for the latter was $15. GBDC announced last week it had made $128.9 million of new mid-market investment commitments in the third quarter. Of those, 85 percent were unitranche loans, 14 percent were senior secured loans and 1 percent were equity securities.