Private Market Talks: Conversations and insights on the private markets with private capital’s leading figures. Private Credit with Golub Capital’s David Golub
Jun 21, 2024
David Golub, President of Golub Capital, shares insights from over three decades in the private credit industry. He reflects on the company’s impressive growth, weathering interest rate shifts, and the evolving landscape of leveraged loans. The discussion highlights trends like consolidation, the importance of scale, and how middle market companies are adapting. Golub also compares default rates between different borrower classes, revealing the strategic advantages unique to middle market lending. This candid conversation offers a glimpse into the future of private credit.
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Founding Story of Golub Capital
- David Golub and his brother started Golub Capital to disrupt the traditional convoluted private equity lending structure.
- They pioneered the "one-stop" loan fund approach, simplifying financing and gaining sponsor loyalty over time.
Growth Drivers of Golub Capital
- Key drivers of Golub Capital's growth include the expanded private equity ecosystem and regulatory limits on banks.
- Competitor missteps and a bit of luck also contributed to their ascent.
Build Competitive Advantages Consistently
- Focus on nurturing repeat customer relationships and reliable service to sustain competitive advantage.
- Avoid overpromising and maintain sufficient capital to support sponsor needs.