Private Equity Spotlight The ‘good boring’ approach to private credit
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Feb 6, 2025 
David Golub, President of Golub Capital, shares insights from his extensive experience in private credit investing. He explains the 'good boring' approach that has allowed Golub Capital to thrive through economic fluctuations. The discussion highlights the significance of building long-term relationships with sponsors and focusing on resilient sectors. Golub also reflects on navigating market challenges, showcasing how effective partnerships can transform companies. His strategic insights reveal how disciplined investment plays a key role in sustainable growth.
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Founding Golub Capital
- David Golub and his brother Lawrence started Golub Capital after seeing inefficiencies in private equity financing in the 1990s.
- They created a one-stop lender model that supports growth and holds loans on their balance sheet to build long-term sponsor relationships.
Edge and Relationships Matter
- Consistent premium returns require having a sustainable competitive advantage or edge, not just genius.
- Building strong, repeat relationships with private equity sponsors creates a collaborative advantage beyond one-time transactions.
Long-Term Backing of Software Firm
- Golub Capital supported an enterprise software company with a $225 million loan in 2015 that grew through 17 transactions over 7 years to over $3 billion.
- This long-term partnership helped the company expand via acquisitions and globalization with Golub as lead agent.