Golub investment vehicle crosses $1bn mark

The firm also boosted its net investment income in its fourth fiscal quarter versus the same time last year.   

Golub Capital Investment Corporation (GCIC), a business development company, has raised $1.08 billion, according to regulatory documents filed with the US Securities and Exchange Commission on Tuesday.

The firm, an affiliate of the publicly traded Golub Capital BDC (GBDC), reported in September it had raised $942.9 million. The firm declined to comment.

Most recently, the State Teachers Retirement System of Ohio has paid $180.32 million for 12.02 million shares, translating to 29 percent of the GCIC’s shares, according to an 8 December regulatory filing. The firm has committed up to $200 million. In addition to its investment in GCIC, the firm also has stakes in TPG Specialty Lending, TPG Capital’s BDC.

GCIC and GBDC serve very different purposes for investors even though both are BDCs. David Golub, CEO of both entities, told Private Debt Investorin November he would steer institutional investors to one or the other based on what the investors’ goals were.

“If liquidity is very important to the investor and the amount of capital that the investor is looking to deploy is not too big, the publicly traded BDC is a great option,” he said. “If the investor is seeking to put $100 million to work, the publicly traded BDC is probably not an option. So we look at other options, including our non-traded BDC and our private funds.”

Last month, for its fourth fiscal quarter, GCIC reported $10.6 million in net investment income, or 29 cents a share, a year-on-year increase from $4.82 million, or 26 cents a share, additional SEC filings show.

In that quarter, the firm also completed its first mid-market collateralised loan obligation, a $410.09 million deal. Its $15 net asset value per share had not changed from the same time last year. New originations totaled $203.4 million for the three months ending 30 September.

Formed in 2014, GCIC is a BDC that lends to mid-market companies. As of 30 September, the firm listed $1.15 billion in assets. It portfolio comprises 84 percent one-stop loans – facilities that have characteristics of both first lien and second lien debt; 11 percent senior secured debt; 4 percent in GCIC Senior Loan Fund, a vehicle in which GCIC co-invests with RGA Reinsurance Company; and 1 percent equity investments.