Golub Capital Bdc, Inc. · NASDAQ:GBDC
Golub Capital Bdc — Investor Presentation (March 2025)
42 slides from Golub Capital Bdc's investor presentation, March 2025
Slide 1: Golub Capital BDC, Inc. Investor Presentation March 2025
GOLUB CAPITAL BDC, INC. (Nasdaq: GBDC) INVESTOR PRESENTATION MARCH 2025 © 202 5 G OL UB CA P I T A L L L C
Slide 2: Disclaimer
Disclaimer Some of the statements in this presentation constitute forward-looking statements, stock markets; the impact on our business of the Dodd-Frank Wall Street Reform and which relate to future events or our future performance or financial condition. The Consumer Protection Act and the rules a
Slide 3: At a Glance: Golub Capital BDC, Inc. (Nasdaq: GBDC)
At a Glance: Golub Capital BDC, Inc. (Nasdaq: GBDC) GBDC’s Investment Focus GBDC Highlights − First lien first out senior secured floating rate loans Investment $8.7 billion, 386 portfolio − Private equity-backed companies with $10–100 million of EBITDA Portfolio companies, 0.3% average − “Core” mid
Slide 4: The Golub Capital Advantage and GBDC Market Positioning
The Golub Capital Advantage and GBDC Market Positioning
Slide 5: Overview of Golub Capital
Overview of Golub Capital Firm Overview − Founded in 1994 $75+ billion − Over 1,000 employees with over 220 investment professionals Capital Under Management1 − Award-winning middle market lending franchise2 30 − Top 3 middle market bookrunner for each of the last 15 years3 − Office locations across
Slide 6: Differentiated Core Middle Market Focus v. Peers
Differentiated Core Middle Market Focus v. Peers Golub Capital’s lending focus spans from the lower middle market to the upper middle market Ability to finance upper middle market borrowers Blackstone Secured Lending Fund: $198 million Wtd. Avg. EBITDA Golub Capital BDC, Inc. (Nasdaq: GBDC): Oaktree
Slide 7: Ability to Work with Borrowers Across the Middle Market
Ability to Work with Borrowers Across the Middle Market Our range of financing solutions allows us to see more deal flow and be more selective. The result is a diversified set of originations across the middle market spectrum Distribution of Golub Capital Originations* $52 million 67% January 1, 201
Slide 8: Broad Sponsor Finance Platform
Broad Sponsor Finance Platform 400+ 280+ $25MM–1BN Sponsor Relationships1 Repeat Sponsor Relationships Hold Size Range Golub Capital Advantages for Private Equity Sponsors Origination Volume with Repeat Sponsors2,3 % of retained commitments − Reliability − Product breadth and flexibility 92% 94% 92%
Slide 9: Attractive Opportunities From Existing Borrowers
Attractive Opportunities From Existing Borrowers As the incumbent lender to over 360 middle market companies, we believe we are well positioned to capture attractive deal flow from our existing borrowers − We believe financings with existing borrowers generally have attractive risk-return characteri
Slide 10: Our Capabilities Enable Us To Lead Approximately 90% of Our Deals
Our Capabilities Enable Us To Lead Approximately 90% of Our Deals We believe acting as a lead lender provides distinct advantages relative to a participating role Advantages Origination Volume with Golub Capital as a Lead Lender* % of retained commitments − Lead lenders typically control pricing, de
Slide 11: Extensive Investment Team With Deep Industry Expertise
Extensive Investment Team With Deep Industry Expertise Golub Capital’s 220+ investment professionals have in-depth knowledge and experience across a variety of industry sub-sectors Software & Technology Healthcare 850+ $80+ Billion 500+ $41+ Billion Transactions closed Capital committed Transactions
Slide 12: Long-Standing Track Record of Low Default Rates
Long-Standing Track Record of Low Default Rates1 Our strong, long-term track record benefits from low defaults and credit losses over multiple market cycles* Golub Capital vs. Leveraged Loan Index Default Rate 2004 – 2024 108 bps 151 bps 2.01% 0.00% Payment Default Rate4 during COVID-19 dislocation5
Slide 13: GBDC's Affiliation with Golub Capital Positions it for Success in the Public BDC Sector
GBDC’s Affiliation with Golub Capital Positions it for Success in the Public BDC Sector GBDC’s affiliation with Golub Capital has resulted in a risk-adjusted return profile that we believe is differentiated in the public BDC sector Attractive Dividend Long-Term Track Record of 1. 2. 1st Lien Oriente
Slide 14: GBDC Business Highlights
GBDC Business Highlights O 2 GOLUB CAPITAL
Slide 15: FY 2025 Q1 Earnings Review (Quarter Ended 12/31/24)
FY 2025 Q1 Earnings Review (Quarter Ended 12/31/24) − Profitability remained solid with adjusted net investment income per share of $0.39, or an Adjusted NII ROE of Earnings Summary 10.1%1,2 − Key profitability drivers: • Continued strong portfolio company performance • High base rates • Attractive
Slide 16: GBDC's Investment Portfolio is Conservatively Positioned
GBDC’s Investment Portfolio is Conservatively Positioned Portfolio Composition by Seniority Portfolio Composition by Interest Rate Type on Loans2 Predominantly first lien, first out senior secured loan portfolio mitigates Preponderance of portfolio is floating rate credit risk 1% 7% 5% First Lien Tr
Slide 17: Higher First Lien Composition, Greater Portfolio Diversity Than Peer Averages
Higher First Lien Composition, Greater Portfolio Diversity Than Peer Averages Portfolio Composition by Seniority1 Diversification by Obligor GBDC’s portfolio is more conservatively positioned than the GBDC’s portfolio is almost twice as diversified by obligor as the BDC peer average BDC peer average
Slide 18: Golub Capital's Portfolio Company Fundamentals Outpace the Average Private Credit Borrower
Golub Capital’s Portfolio Company Fundamentals Outpace the Average Private Credit Borrower Year-over-Year LTM EBITDA Growth (%) LTM EBITDA Margin (%) Golub Capital’s portfolio companies have demonstrated stronger Golub Capital’s portfolio companies have demonstrated greater growth relative to the av
Slide 19: GBDC's Portfolio Continues to Deliver Strong Relative Credit Performance
GBDC’s Portfolio Continues to Deliver Strong Relative Credit Performance % of Investment Income from PIK Interest v. BDC Peers Non-Accrual Rate v. BDC Peers GBDC’s total investment income is less reliant on portfolio GBDC’s portfolio is less exposed to portfolio companies companies that are meeting
Slide 20: GBDC's Cycle-Tested Underwriting Performance Ranks Top Amongst BDCs
GBDC’s Cycle-Tested Underwriting Performance Ranks Top Amongst BDCs1 Raymond James’ Historical Underwriting Score Cumulative Default Rates by Vintage v. Public BDC Average for CQ4 2003 through CQ3 2024 200 Note: a score of -50 indicates performance 50% better than the industry, and a score of +50 in
Slide 21: Gold Standard in Public BDC Fee Structures & High Degree of Shareholder Alignment
Gold Standard in Public BDC Fee Structures & High Degree of Shareholder Alignment We believe GBDC’s fee structure positions it to deliver market-leading risk-adjusted returns across different economic and interest rate environments while keeping its investment strategy focused at the top of the capi
Slide 22: NAV Accretion from Affiliated BDC Mergers
NAV Accretion from Affiliated BDC Mergers Mergers between GBDC and Golub Capital-affiliated private-to-public BDCs have represented a highly effective capital raising alternative for GBDC. GBDC’s acquisition by merger of GCIC in 2019 and GBDC 3 in 2024 each resulted in NAV accretion for GBDC investo
Slide 23: GBDC Debt Funding Structure and Liquidity Management
GBDC Debt Funding Structure and Liquidity Management
Slide 24: Conservative Financial Leverage With a Durable and Diverse Funding Structure
Conservative Financial Leverage With a Durable and Diverse Funding Structure GBDC Debt Capital Structure Debt Undrawn Funding Source Commitment Outstanding Par Commitment Reinvestment Period Stated Maturity Interest Rate1 Securitizations: GBDC 3 2022 Debt Securitization $232,513 $232,513 — January 2
Slide 25: Relatively Well Positioned for Declining Rates From a Match-Funded Debt Capital Structure
Relatively Well Positioned for Declining Rates From a Match- Funded Debt Capital Structure We believe GBDC’s relatively high proportion of floating rate debt capital positions it to mitigate the impact of declining interest rates on investor returns Composition of Total Debt Capital – Floating Rate
Slide 26: Highly Flexible Funding Structure and Significant Available Liquidity
Highly Flexible Funding Structure and Significant Available Liquidity Funding Sources by Type and Available Liquidity Amount Outstanding as of December 31, 2024 ($ in millions) $1,116 million of total available liquidity $1,116 million Total Available Liquidity1 $110.3 Cash & Cash Equivalents 44%
Slide 27: Credit Rating Highlights – GBDC v. BDC Peers
Credit Rating Highlights – GBDC v. BDC Peers Golub Capital and GBDC are committed to a differentiated investment grade ratings profile − On January 23, 2025, GBDC’s corporate credit rating and its senior unsecured shelf rating were upgraded to Baa2 (Stable) from Baa3 (Positive) by Moody’s Asset 1st
Slide 28: Key Takeaways – GBDC Returns and Value Proposition
Key Takeaways – GBDC Returns and Value Proposition
Slide 29: GBDC's Return Drivers
GBDC’s Return Drivers We believe GBDC is positioned to deliver one of the most attractive risk-adjusted return profiles in the public BDC sector Attractive Asset Yields w/ 1st Lien Focus Quarter Ended 1. - 1st lien focused investment portfolio, 99% floating rate portfolio, December 31, 2024 sponsor-
Slide 30: GBDC's Long History of Strong Shareholder Returns
GBDC’s Long History of Strong Shareholder Returns Investors in GBDC’s 2010 IPO have achieved a 9.6% IRR on NAV1 As of December 31, 2024 $35.14 $0.33 $0.73 $18.95 $14.63 $15.13 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Sep-20 Sep-21 Sep-22 Sep-23 Sep-24 Dec-10 Mar-11 Dec-1
Slide 31: Since IPO, GBDC has Delivered Outsized Returns with Lower Volatility
Since IPO, GBDC has Delivered Outsized Returns with Lower Volatility GBDC has outperformed BDC peers with lower volatility of returns Annualized IRR on NAV Since GBDC Inception Volatility of Annualized IRR on NAV Since GBDC Inception As of December 31, 2024 As of December 31, 2024 9.6% 13.9% 6.8% 8.
Slide 32: GBDC Has Outperformed Competing Asset Classes
GBDC Has Outperformed Competing Asset Classes Since its inception in 2010, GBDC has performed in line with broad-based equity market indices while delivering significant outperformance relative to relevant leveraged loan and bank market indices Annualized Total Returns Since GBDC’s Inception April 1
Slide 33: GBDC's Value Proposition
GBDC’s Value Proposition GBDC is a premier BDC that primarily invests in first lien senior secured loans to middle market companies sponsored by private equity firms − GBDC is managed by an affiliate of Golub Capital, an industry-leading lender to U.S. middle market Golub Capital Affiliation compani
Slide 34: Appendix
Appendix O 5 GOLUB CAPITAL
Slide 35: The Sponsor Advantage
The Sponsor Advantage We believe lending to sponsor-backed companies helps us select better credits, maintain better portfolio performance and achieve better problem resolution than lending to non-sponsored companies Credit Selection − Sponsors specialize in creating equity value and implementing cr
Slide 36: Leading Provider of One-Stop Loans and Buy-and-Hold Solutions
Leading Provider of One-Stop Loans and Buy-and-Hold Solutions One-stop loans and buy-and-hold solutions provide a win-win for investors and sponsors Win-Win of the One-Stop Senior/Mezzanine Structure One-Stop Structure − For investors First lien, first-out senior secured debt 45% Senior 50% One-St
Slide 37: Golub Capital's Broad Sponsor Finance Platform Leads to Extensive Deal Flow
Golub Capital’s Broad Sponsor Finance Platform Leads to Extensive Deal Flow We believe our direct origination strategy, scale and market position create a wide deal funnel, allowing us to be selective and disciplined Historical Selectivity Golub Capital Middle Market Lending Opportunities 2,824 2,54
Slide 38: Common Stock and Distribution Information
Common Stock and Distribution Information Common Stock Price Data1 Fiscal Year Ending September 30, 2024 High Low End of Period First Quarter $15.31 $14.06 $15.10 Second Quarter $16.63 $15.06 $16.63 Third Quarter $17.58 $15.50 $15.71 Fourth Quarter $16.00 $14.36 $15.11 Fiscal Year Ending September 3
Slide 39: Quarterly Variable Supplemental Distribution Framework
Quarterly Variable Supplemental Distribution Framework FY 2025 Q1 Quarterly Variable Supplemental Distribution Quarter Ended Quarter Ended September 30, 2024 December 31, 2024 Quarterly Variable Supplemental Distribution Adjusted net investment income per share $0.47 $0.39 (-) Quarterly base distrib
Slide 40: Endnotes
Endnotes Page 3: At a Glance: Golub Capital BDC, Inc. (Nasdaq: GBDC) 1. "Capital under management" is a gross measure of invested capital including leverage. As of 2. Default rate of the Morningstar LSTA US Leveraged Loan Index, measured by principal amount. The January 1, 2025. Morningstar LSTA US
Slide 41: Endnotes (Continued)
Endnotes (Continued) Page 15: FY 2025 Q1 Earnings Review (Quarter Ended 12/31/24) (Cont’d) 4. On December 3, 2024, in connection with the issuance of an additional $150 million in aggregate 8. Please see page titled, “Common Stock and Distribution Information” for payment dates of principal amount o
Slide 42: Important Investor Information
Important Investor Information Golub Capital (including its various affiliates) creates and manages multiple investment funds. Two Because many of the loans or other investments are not actively traded, this determination of of its control affiliates, GC Advisors LLC (“GC Advisors”) and GC OPAL Advi
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