Golub smashes previous fundraising record by $750m

The direct lending behemoth is coming off one of its largest deals, a $695m loan to back a radiology portfolio company of New Enterprise Associates.

Golub Capital has continued its record fundraise for its latest fund, pulling in $2.52 billion to invest in private equity-backed businesses, according to regulatory filings submitted to the Securities and Exchange Commission.

The alternative lending firm’s total haul for Golub Capital Partners 11 became the firm’s largest fund upon its interim close in July, when, at $1.85 billion, it outstripped the 10th fund’s total of $1.76 billion. Investors include the New Mexico State Investment Council ($100 million commitment) and the El Paso County Retirement Plan ($8 million).

A representative for the firm could not be reached for comment.

The NMSIC materials show GCP 11 will focus on senior secured debt investments in private equity-sponsored deals. The fund will target companies with $10 million to $60 million in EBITDA and will likely be composed of more than 400 loans at one time, per the documents.

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. It will target a net return of 10-13 percent, according to NMSIC meeting minutes.

Last month, the firm financed one of its largest deals to date, when it provided $695 million to New Enterprise Associates portfolio company Radiology Partners. The loan will allow the company to pay for future growth, refinance existing debt and complete its acquisition of Southwest Diagnostic Imaging, a healthcare imaging company based in the Phoenix, Arizona, metropolitan area providing MRIs and CT scans, among other services.

In addition to mid-market lending, Golub, which manages $20 billion in assets, makes investments in late-stage lending and broadly syndicated loans while also managing collateralised loan obligations and a business development company.