Golub Capital appointed Matt Shafer as Managing Director and Head of Golub Equity Continuation Partners. The firm launched the GP-led private equity secondaries strategy last year to expand its equity investment capabilities.

Shafer will lead the growth and development of the strategy while working closely with Greg Cashman, Vice Chair and Co-Head of Golub Capital’s Sponsor Finance practice. The role focuses on expanding the firm’s activity in the growing market for continuation vehicles.

Executive Background

Shafer brings nearly three decades of global experience as an investor, financier, and advisor working with private equity firms. He was most recently Head of Capital Solutions and U.S. Private Equity at Northleaf Capital Partners. In that role, he helped lead private equity investment activities including secondaries, co-investments, and structured capital.

Prior to Northleaf, Shafer served as Partner and Head of Americas Private Equity at Vision Capital. He also spent 12 years in sponsor-focused investment banking roles with CIBC World Markets and Lehman Brothers.

Strategic Context

David Golub, Co-Chief Executive Officer of Golub Capital, stated that the appointment marks an important milestone in the growth of the GP-led secondaries business. He noted that the firm has already established that its longstanding sponsor relationships and rigorous underwriting capabilities can deliver value to sponsors, portfolio companies, and investors.

Shafer commented that investors need both broad coverage of private equity and deep company-specific underwriting expertise as continuation investments become a category in their own right. He cited Golub Capital’s outstanding culture and longstanding reputation as a partner of choice for financial sponsors as key factors in his decision.

What the Numbers Show

The strategic expansion aligns with Golub Capital’s broader scale. As of July 1, 2026, the firm had over 1,100 employees and over $90 billion of capital under management. This gross measure of invested capital includes leverage. The dedicated team for GECP combines Golub Capital’s underwriting talent with experienced private equity and secondaries market professionals.

Golub Equity Continuation Partners focuses on continuation vehicles and other investments that allow private equity sponsors to continue owning and growing high-quality businesses while providing liquidity solutions for limited partners.

Golub Capital BDC, Inc., an externally managed business development company listed on the NASDAQ under the ticker symbol GBDC, reported third-quarter fiscal 2026 adjusted earnings per share of $0.34, beating the analyst consensus estimate of $0.33 by 3.03%. This result marks a return to profitability for the quarter ended June 30, 2026, with GAAP earnings per share of $0.22, a significant improvement from the loss of $(0.18) per share recorded in the prior quarter. Despite the earnings beat, the company’s quarterly sales of $187.730 million missed the analyst consensus estimate of $191.277 million by 1.85%, representing a 14.02% decline from sales of $218.344 million in the same period last year.

The filing with the Securities and Exchange Commission details that net investment income per share remained consistent at $0.33 for both the current and prior quarters. Excluding $0.01 per share in purchase premium amortization from the acquisitions of Golub Capital Investment Corporation ("GCIC") and Golub Capital BDC 3, Inc. ("GBDC 3"), adjusted net investment income per share stood at $0.34. The company’s investment adviser, GC Advisors LLC, manages the portfolio primarily consisting of one stop and senior secured loans to middle-market companies. On July 31, 2026, the Board of Directors declared a quarterly distribution of $0.33 per share, payable on September 29, 2026, to stockholders of record as of September 14, 2026.

Financial Performance Highlights

The company’s total assets decreased to $8,339.6 million as of June 30, 2026, from $8,529.7 million at the end of the previous quarter. Net asset value per share declined slightly to $14.25 from $14.35. Despite the decline in NAV, the company maintained a GAAP leverage ratio of 1.24x and a GAAP debt-to-equity ratio, net of 1.23x.

Portfolio Composition and Quality

As of June 30, 2026, Golub Capital BDC held investments in 424 portfolio companies with a total fair value of $8,196.4 million. The portfolio remains heavily concentrated in one stop loans, which accounted for 87.4% of total investments at fair value. Senior secured loans represented 4.8%, while equity investments comprised 7.1%. Junior debt, including second lien and subordinated debt, made up 0.7% of the portfolio.

Internal performance ratings assigned by GC Advisors indicate that 84.9% of investments are rated 4 or 5, signifying acceptable to low risk. Investments rated 3, indicating increased risk but generally not past due, accounted for 10.6% of the portfolio. There were no investments rated 1, which denotes substantial delinquency, as of June 30, 2026, down from a negligible amount in the prior quarter.

Capital Activities and Liquidity

During the quarter, the company engaged in active capital management. It repurchased approximately 1,113,992 shares of common stock for an aggregate price of $14.4 million at an average price of $12.90 per share. Additionally, the Golub Capital Employee Grant Program Rabbi Trust purchased approximately $31.4 million, or 2,425,911 shares, for incentive compensation purposes.

Liquidity resources included $20.0 million in cash and cash equivalents and $50.7 million in restricted cash. The company had $4,561.8 million of debt outstanding. Subject to leverage restrictions, Golub Capital BDC had approximately $1,725.9 million of remaining availability on its revolving credit facility with JPMorgan. On May 27, 2026, the company issued $500.0 million of unsecured notes bearing a fixed interest rate of 6.250%, maturing on June 1, 2031.

What the Numbers Show

The shift from a loss to profitability in Q3FY26 highlights the stabilization of the portfolio’s unrealized losses. In the prior quarter, net realized and unrealized loss per share was $(0.51), whereas it improved significantly to $(0.11) in the current quarter. This improvement was partially offset by realized losses on the restructuring of two portfolio companies but benefited from the reversal of unrealized depreciation related to market-wide credit spread widening recognized in the previous quarter. The consistency in net investment income per share at $0.33 demonstrates the resilience of the core lending business despite broader market volatility. The beat on adjusted EPS against estimates suggests strong underlying income generation, even as top-line sales figures missed expectations due to a 14.02% year-over-year decline.