Who are the biggest direct lenders?

The Top Direct Lending Funds In the first category are firms like Ares, Goldman Sachs Merchant Banking, Apollo, Bain Capital, KKR, Blackstone (GSO), Cerberus, Fortress, and Centerbridge.

What is a direct lending firm?

Direct lending is a form of corporate debt provision in which lenders other than banks make loans to companies without intermediaries such as an investment bank, a broker or a private equity firm. Aside from peer-to-peer networks, direct lending is therefore mainly focused on middle market borrowers.

What does Golub Capital do?

Golub Capital is a market-leading, award-winning direct lender and credit asset manager, with over $45 billion of capital under management. We specialize in delivering reliable, creative and compelling financing solutions to companies backed by private equity sponsors.

What is private direct lending?

Direct lending is a subset of private debt where loans are directly negotiated between the lender (asset managers, and insurance and specialty finance companies) and middle market companies. The universe of middle market companies can be further broken down by lower-middle market, middle market and upper-middle market.

Do banks do direct lending?

Direct lenders are non-bank creditors that make loans to businesses without using an intermediary, such as an investment bank. Loans made to middle-market businesses are normally used to finance leveraged buyouts (LBOs), mergers and acquisitions (M&A), growth investments, and recapitalizations.

How big is the direct lending market?

The region’s direct lending market has more than doubled in size since 2016 to reach $156 billion last year, according to research provider Preqin.

What is an example of direct lending?

Direct Lending An example is a private party purchasing the securities issued by a firm. The securities are usually sold to the public through an underwriter, someone who purchases them from the issuer with the intention of reselling them at a profit.

Is Golub Capital private equity?

Get to Know Golub Capital Across our activities, Golub Capital nurtures long-term, win-win partnerships that inspire repeat business from private equity sponsors and investors. Founded over 25 years ago, Golub Capital today has over 590 employees and lending offices in Chicago, New York, San Francisco and London.

Is Golub capital a bank?

Golub Capital is one of the largest non-bank middle market lenders and providers of senior debt.

Is direct lending risky?

The primary risks associated with direct lending strategies are credit, interest rate, illiquidity, and regulatory risk. Credit risk references the likelihood that a borrower will default in the payment of principal and/or interest.

What are broadly syndicated loans?

Broadly syndicated loans. Broadly syndicated loans are floating rate loans made to corporate borrowers that generally have greater than $50 million in EBITDA (in most cases, at least $100 million). They are senior in the capital structure and have a first claim on the assets of the borrower.

What is a Golub?

German : from Sorbian golub’dove’, a metonymic occupational name for someone who bred or looked after doves, which were reared for food in the Middle Ages. See alsoHolub.