Spotlight: A PEI Podcast
The ‘good boring’ approach to private credit
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.
21:50
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Quick takeaways
- Golub Capital's 'good boring' approach focuses on long-term relationships and straightforward lending, ensuring reliability in changing market conditions.
- The firm's resilience during economic downturns highlights the importance of strategic loan structuring and proactive collaboration with private equity sponsors.
Deep dives
The Growth of Private Credit
Private credit has emerged as one of the fastest-growing segments of the finance industry, experiencing a tenfold increase since 2009, reaching nearly $2 trillion. This growth is partly due to traditional financing sources becoming less accessible as interest rates rose, prompting private credit to fill the gap. Despite concerns about the sustainability of this growth, the current market presents significant opportunities, given that the addressable private credit market exceeds $30 trillion. The evolution of private credit reflects changing financial landscapes and the need for adaptive lending models.
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