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Here are 1-3 brief analogies to describe Golub Capital BDC (GBDC):

• Like a Real Estate Investment Trust (REIT), but instead of owning properties, it owns a diversified portfolio of loans to private, mid-sized companies.
• It's like investing in Apollo Global Management's private credit division, but through a publicly traded stock designed to pay high dividends.

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• Senior Secured Loans: Providing direct loans to middle-market companies, primarily through first-lien debt secured by assets.
• One-Stop (Unitranche) Loans: Offering integrated debt facilities that combine senior and junior debt into a single loan for simplified financing.
• Junior Capital: Investing in subordinated debt or mezzanine financing, which ranks lower in priority than senior debt.
• Equity Investments: Acquiring minority equity stakes in portfolio companies, often alongside debt investments, for potential upside participation.

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Golub Capital BDC (GBDC) sells primarily to other companies.

As a Business Development Company (BDC), GBDC's core business involves providing debt financing (primarily first lien and senior secured loans) and, to a lesser extent, equity investments to U.S. middle-market companies. Due to this investment strategy, GBDC does not have "major customers" in the traditional sense where a few large entities account for a significant portion of its revenue or risk.

Instead, GBDC's customer base consists of a highly diversified portfolio of hundreds of privately held, middle-market companies across a wide range of industries. These companies typically seek capital for purposes such as organic growth, acquisitions, recapitalizations, or leveraged buyouts.

Because GBDC aims to mitigate concentration risk through diversification, and its portfolio companies are generally private entities, specific names of "major customer" companies cannot be listed. Its business model inherently avoids reliance on a small number of large clients, spreading its investments across many borrowers.

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• Golub Capital LLC
• KPMG LLP
• The Bank of New York Mellon (BK)

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Lawrence E. Golub Chairman

Lawrence E. Golub is the CEO of Golub Capital, which he founded in 1994. Prior to founding Golub Capital, he held management positions at Bankers Trust Company and Allen & Company. He also served as a Managing Director at Wasserstein Perella, where he established the firm's capital markets group and debt restructuring practice. Mr. Golub began his career at Allen & Company, engaging in private equity, leveraged finance, and mergers and acquisitions. He earned his AB degree in economics from Harvard College, an MBA from Harvard Business School (where he was a Baker Scholar), and a JD from Harvard Law School.

David B. Golub Chief Executive Officer

David B. Golub has served as the Chief Executive Officer and Director of Golub Capital BDC since 2009. He is also the President of Golub Capital. He joined Golub Capital in 2003, working alongside his brother Lawrence Golub, the firm's founder. Before joining Golub Capital, Mr. Golub was a Managing Director at Centre Partners, a middle-market private equity firm, and at Corporate Partners, a $1.5 billion private equity firm affiliated with Lazard that focused on acquiring significant minority stakes in publicly traded companies. He has served on numerous boards of both public and private companies, including being the first chairman and a long-standing director of The Michael J. Fox Foundation. Mr. Golub earned his A.B. degree magna cum laude from Harvard College, an MPhil in International Relations from Oxford University as a Marshall Scholar, and an MBA from Stanford Graduate School of Business where he was named an Arjay Miller Scholar.

Christopher C. Ericson Chief Financial Officer; Treasurer

Christopher C. Ericson has been the Chief Financial Officer and Treasurer of Golub Capital BDC since 2021. He first joined Golub Capital in 2009, serving for eight years as a key member of Golub Capital's BDC Fund Accounting team, and rose to the role of Controller for GBDC. He rejoined Golub Capital in 2018 as a Director on the Corporate Development team within the Investor Partners Group. Prior to his roles at Golub Capital, Mr. Ericson served as the Controller at Downsview Capital, a hedge fund, and also worked at Guggenheim Partners and Deloitte. He earned his BS degree in Commerce from the University of Virginia and an MS degree in Accountancy from the University of Illinois and is a Certified Public Accountant.

Timothy J. Topicz Officer (assumed COO responsibilities)

Timothy J. Topicz has assumed the responsibilities of Chief Operating Officer for Golub Capital BDC, having served as an officer of the company since February 2023. He is also a Director at Golub Capital, responsible for program management for the firm's BDC business, encompassing both public and private BDCs. Prior to joining Golub Capital, Mr. Topicz was a Vice President in the Financial Institutions Investment Banking group at Wells Fargo Securities, where he led the firm's investment banking coverage effort for the Business Development Company sector. Mr. Topicz earned his BS with honors in Business Administration and Finance from The Ohio State University and an MBA from the University of Chicago.

Jonathan D. Simmons Managing Director, Corporate Strategy

Jonathan D. Simmons is a Senior Managing Director and Head of Corporate Development at Golub Capital, having joined the firm in 2009. He is responsible for developing and executing strategic projects across the firm, including growth initiatives, partnerships, joint ventures, mergers and acquisitions, and global expansion. He also serves as an officer of GBDC. Previously, Mr. Simmons was a member of Golub Capital's Direct Lending team, where he underwrote, executed, and monitored investments. Before joining Golub Capital, he was a Senior Associate at Churchill Financial, executing senior and junior debt investments and equity co-investments in middle-market companies, and managing distressed investments. Prior to that, he was an Investment Banking Associate at J.P. Morgan Securities, where he originated, structured, and executed various debt and equity transactions for financial institutions. Mr. Simmons earned his BA degree magna cum laude in Mathematics and Economics from Colgate University.

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The key risks to Golub Capital BDC's (GBDC) business are primarily driven by its investment portfolio characteristics and the prevailing interest rate environment.

1. Sensitivity to Interest Rate Declines and Dividend Sustainability

   Golub Capital BDC's investment portfolio is highly sensitive to changes in interest rates, with approximately 99% of its loans being variable rate. While rising interest rates have historically benefited the company's net investment income (NII), a projected environment of declining federal funds rates poses a significant risk. As interest rates decrease, GBDC's NII is expected to compress, directly impacting its ability to cover its dividend payments. Recent reports indicate a decline in NII per share and dividend coverage ratios falling below 1.0x, leading to a high probability of future dividend cuts.

2. Credit Risk and Portfolio Company Defaults

   As a Business Development Company (BDC), GBDC primarily invests in debt, such as one-stop and senior secured loans, of U.S. middle-market companies. These underlying investments often carry speculative characteristics, meaning there is an inherent risk that portfolio companies may default on their payments or be unable to refinance their debt, especially in an environment where rising interest rates could make debt repayment more challenging for borrowers. Although a significant portion of GBDC's portfolio is in first-lien, senior secured loans (92%), the overall credit quality and potential for defaults in its middle-market lending activities remain a fundamental risk.

3. Lack of Liquidity for Investments

   GBDC's investment strategy involves holding debt and equity instruments in private middle-market companies. These investments typically lack an active trading market, making them illiquid. Consequently, GBDC may face challenges in disposing of these investments quickly or at favorable prices if it needs to, such as in response to changes in market conditions or disagreements with portfolio company management. This illiquidity could lead to a decrease in the value of its investments.

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Golub Capital BDC (GBDC) primarily focuses on providing financing solutions to U.S. middle-market companies. These solutions include first-lien senior secured loans, second-lien secured loans, unitranche loans, and subordinated debt investments, along with minority equity investments. Their target market consists of U.S. middle-market companies, typically with annual revenues between $50 million and $1 billion, and often sponsored by private equity firms.

The addressable market for Golub Capital BDC's main products and services, primarily direct lending within the private credit sector, is substantial within the United States.

• The private credit market in the U.S. was approximately $1.25 trillion as of December 2024.
• Globally, the private credit market is estimated to reach USD 1.67 trillion in 2025, with North America accounting for the largest share.
• The broader U.S. middle market, which encompasses the companies GBDC targets, consists of nearly 200,000 companies. Some estimates place the combined revenue of this market at $4 trillion.

Therefore, the addressable market for Golub Capital BDC's main products and services is estimated to be approximately $1.25 trillion (U.S.) within the private credit sector, serving a U.S. middle market comprised of nearly 200,000 companies.

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Here are 3-5 expected drivers of future revenue growth for Golub Capital BDC (GBDC) over the next 2-3 years:

1. Growth in Investment Portfolio Size: Golub Capital BDC has consistently expanded its investment portfolio, reaching $9.0 billion in fair value as of June 30, 2025, representing a 3.9% increase from the prior quarter. This growth is driven by new investment commitments, such as the $556.8 million originated in Q3 2025. A larger investment portfolio directly translates to increased interest income, which is a primary component of the company's revenue.
2. Favorable Interest Rate Environment for Floating-Rate Loans: A significant majority of GBDC's investment portfolio, specifically 92% as of June 30, 2025, consists of first-lien senior secured floating-rate loans. Therefore, a stable or increasing benchmark interest rate environment is expected to lead to higher interest income generated from these floating-rate assets, contributing positively to revenue growth. While there was a slight decline in investment income yield in Q3 2025 due to modestly lower base rates and spread compression, historically high base rates have generally supported earnings.
3. Effective Deployment of Capital and Increased Leverage within Target Range: GBDC's ability to efficiently deploy its available capital and potentially increase its net leverage further, within its targeted range of 0.85 to 1.25 turns (with an average of 1.21 turns in Q3 2025), is a key driver. The company has indicated that increasing net leverage within their target of 1.10 to 1.15 turns would serve as an additional tailwind for profitability, which implies a larger asset base and subsequently higher revenue-generating capacity.
4. Robust Origination Volume from Existing Sponsor Relationships and New Borrowers: GBDC benefits from a strong origination engine that consistently generates new investment opportunities. The company continues to leverage its established relationships with private equity sponsors, which account for approximately half of its origination volume, and has also observed an increase in deal activity with new borrowers. This sustained deal flow is critical for the continuous expansion of its investment portfolio and, consequently, its revenue.

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Share Repurchases

• Golub Capital BDC repurchased 1,300,928 shares of common stock during fiscal year 2023 for an aggregate purchase price of approximately $16.9 million at an average price of $12.96 per share.
• In the second quarter of fiscal year 2025, the company repurchased 2.4 million shares for $34.3 million at an average price of $13.99 per share.
• As of May 29, 2024, a $150 million share repurchase plan remained in effect.

Share Issuance

• In May 2020, GBDC completed a transferable rights offering, selling 33,451,902 shares of common stock and raising approximately $306.7 million in gross proceeds.
• In the second quarter of fiscal year 2025, GBDC issued 2.4 million shares at a premium to its Net Asset Value (NAV), raising approximately $38 million.
• In 2024, GBDC stockholders approved the issuance of shares in connection with the merger with Golub Capital BDC 3, Inc. Under the terms of the merger, GBDC 3 stockholders were to receive newly issued GBDC shares based on an exchange ratio determined prior to the closing.

Outbound Investments

• As of June 30, 2025, GBDC's investment portfolio reached a fair value of $9.0 billion.
• In the third quarter of fiscal year 2025, the company originated $556.8 million in new investment commitments, while recording $305.8 million in exits and sales.
• The company's investment objective is to generate current income and capital appreciation primarily by investing in senior secured and one-stop loans to U.S. middle-market companies, with over 90% of the portfolio consisting of first lien senior secured floating rate loans as of June 30, 2025.