Golub raising 12th direct lending fund

The alternative lender pulled in $2.63bn for its previous vehicle.

Golub Capital has raised almost $200 million for its latest flagship direct lending fund, after wrapping up the previous vehicle earlier this summer.

The mid-market lender has raised $196.76 million for Golub Capital Partners 12, according to Securities and Exchange regulatory filings. Golub targets private equity-backed companies with between $5 million and $100 million. The firm can hold positions of up to $600 million and underwrite loans of up to $1 billion, according to Golub’s website.

The firm declined to comment.

Earlier this summer, GCP 11 closed on $2.63 billion, though the total fund size was $3.06 billion due to capital rolled over from Fund 10 to Fund 11.

Limited partners in Fund 11 include the New Mexico Statement Investment Council ($100 million commitment), the El Paso County Retirement Plan ($8 million), the Adams County Retirement Plan ($8 million), the Maryland-National Capital Park and Planning Commission Employees’ Retirement System and Safety Insurance Company.

The fund, which has a five-and-a-half-year investment life and a three- to four-year harvest period, carries a 1.25 percent management fee on gross assets and a 20 percent carried interest, according to NMSIC February 2017 meeting materials. It will target a net return of 10-13 percent, NMSIC meeting minutes from that time showed.

The firm’s recent transactions include a unitranche loan backing the acquisition of Sola Salon Studios by AHR Growth Partners, MPK Equity Partners and PNC Riverarch Capital. The firm provided a $75 million one-stop loan to back the acquisition of Amazing Lash Studio by KSL Capital Partners-backed WellBiz Brands.

The firm also disclosed that its Golub Capital BDC 3 has raised $494.26 million. The firm’s other business development companies are Golub Capital BDC and Golub Capital Investment Corporation.

Editor’s note: An earlier version of this article stated the loan to back the Sola Salons Studios was $75 million. The size was not disclosed.