Golub Capital Partners 11 Fund Summary - · PDF file17.02.2017 · Golub Capital Partners 11 Fund Summary Sector: Strategy: Sub-Strategy: Cash Flow Lending U.S. Middle Market Lending

Golub Capital Partners 11 Fund Summary

Sector: Strategy: Sub-Strategy:

Cash Flow Lending U.S. Middle Market Lending Sr. Sponsor Focus

IDD: January 2017 ODD: January 2017

Firm Overview

Founded in 1994, Golub Capital (“Golub”) is a leading private credit asset manager focused on lending senior debt to private equity owned companies. Golub currently manages close to $18 billion in credit assets and is a leading originator and manager of middle market debt facilities. Golub’s platform is comprised of two primary sub-strategies: (i) direct lending (first lien loans, unitranche loans and some sub debt) and (ii) broadly syndicated loans (first lien loans). Investments are executed and managed in various fund structures designed to meet specific investor requirements (e.g. leverage, taxes, returns, regulatory, etc.).

Golub currently employs close to 300 professionals including approximately 100 investment professionals across four primary offices: NY (headquarters), Chicago, Charlotte and San Francisco. In addition, there are two satellite offices in the U.S. Virgin Islands (St. Thomas and St. Croix) where Kevin Falvey (Head of Portfolio Monitoring) and his team of over 20 employees are located; per management, this location is partially for tax reasons.

Fund Summary General Partner Golub Capital Sector Cash Flow Lending Strategy U.S. Middle Market Lending Sub-Strategy Sr. Sponsor Focus Main Office New York Geography U.S. Target Size $1 billion target

Management Fees 1.25% on gross assets (50 bps fee paid on broadly syndicated loans)

Carried Interest 20% Closing Schedule: First Close expected early 2017 Investment Period 5.5 years Extensions None Harvest Period 3-4 years following investment period Extensions None

Strategy

Golub is raising capital for the latest vintage of its GCP fund series - Golub Capital Partners 11 (“GCP 11”), which commenced fund raising early 2017.

GCP 11 will include a diversified portfolio of senior secured and one-stop (unitranche) loans to U.S. middle market companies with EBITDA of $10-$60 million. The portfolio is anticipated to comprise over 400 separate loans at any one time and to be diversified across various industries, sponsors and use of proceeds (LBO, refi, etc.). Golub pursues a generalist approach but excludes more cyclical industries, like commodities or consumer discretionary such as apparel businesses, and has dedicated teams focused on the following verticals (i) healthcare, (ii) software, digital and technology services and (iii) specialty retail and restaurants. In many cases (upwards of 40% of loans since 2011), Golub loans are portfolio companies they lent to in the past. Golub originated loans are typically floating rate securities and include maintenance covenants; albeit broadly syndicated loans are increasingly “covenant-lite.”

PRIVATE & CONFIDENTIAL

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Except as otherwise agreed between Aksia and the Intended Recipient, Aksia is under no future obligation to review, revise or update its recommendations or opinions. NOT TAX, LEGAL OR REGULATORY ADVICE: An investor should consult his, her or its tax, legal and regulatory advisors before allocating to a private investment fund or other investment opportunity. Aksia is not providing due diligence or tax advice concerning the tax treatments of a private investment fund’s or investment opportunity’s holdings of assets or an investor’s allocations to such private investment fund or opportunity. RESPONSIBILITY FOR INVESTMENT DECISIONS: The Intended Recipient is responsible for performing his, her or its own reviews of any funds or other investment vehicles or opportunities described herein including, but not limited to, a thorough review and understanding of each vehicle’s or opportunity’s offering materials. 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Such investments or investment vehicles may use leverage, hold significant illiquid positions, suspend redemptions indefinitely, provide no opportunity to redeem, modify investment strategy and documentation without notice, short sell securities, incur high fees and contain conflicts of interests. Such private investment funds or opportunities may also have limited operating history, lack transparency, manage concentrated portfolios, exhibit high volatility, depend on a concentrated group or individual for investment management or portfolio management and lack any regulatory oversight. For a description of the risks associated with a specific private investment fund or investment opportunity, investors and prospective investors are strongly encouraged to review each private investment fund or opportunity’s offering materials which contain a more specific description of the risks associated with each investment. Offering materials may be obtained from the fund manager. 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PRIVATE & CONFIDENTIAL

CONFIDENT IAL | FOR DISCUSSION PURPOSES ONLY

GOLUB CAPITAL PARTNERS 11, L.P.

PRESENTATION TO NEW MEXICO STATEINVESTMENT COUNCIL

Q4 2016

CONFIDENT IAL | © 2016 GOLUB CAPITAL LLC


This document and any other information relating to Golub Capital Partners

11, L.P. (the “Fund”) and Golub Capital Partners International 11, L.P. (“GCP

11 Offshore,” and collectively with the Fund, “GCP 11”) is being provided to

you on a confidential basis solely to assist you in deciding whether or not to

proceed with a further investigation of GCP 11. Acceptance of this

document constitutes an agreement to keep all information relating to GCP

11 strictly confidential, and not to use such information for any other

purpose. Such information, including this document, may not be

reproduced in whole or in part, and may not be delivered to any person

without the consent of Golub Capital.

The Fund and GCP 11 Offshore, GCP 11’s offshore sister fund, will invest in

substantially similar assets. GCP 11 Offshore is available for investment by

non-U.S. or U.S. tax exempt investors only. For additional information

regarding GCP 11 Offshore, including a copy of GCP 11 Offshore’s

confidential private investment memorandum, please contact Golub

Capital.

Some of the statements in this presentation constitute forward looking

statements, which may be predictions about future events, future

performance or financial condition. Actual results could differ materially

from those implied or expressed in such forward-looking statements for

any reason, and future results could differ materially from historical

performance. These materials do not constitute an offer to sell or a

solicitation of an offer to buy limited partnership interests in GCP 11. No

such offer or solicitation in GCP 11 will be made prior to the delivery of the

GCP 11’s private placement memorandum, limited partnership agreement

and associated documentation. Before making the investment decision

with respect to GCP 11, potential investors are advised to read carefully

GCP 11’s private placement memorandum, limited partnership agreement

and related subscription documents, and to consult with their tax, legal and

financial advisors.

These materials contain a preliminary summary of the investment strategy

and principal business terms of GCP 11; this summary does not purport to

be complete and is qualified in its entirety by reference to the more detailed

discussions contained in GCP 11’s private placement memorandum. These

materials have been prepared solely as preliminary materials to determine

investor interest regarding GCP 11 and may not be used or reproduced for

any other purpose. The strategies described herein are subject to change.

Any past performance described herein is not an indication of future

results.

The Fund is managed by GC Advisors LLC, an investment adviser registered

with the United States Securities and Exchange Commission (“SEC”). GCP 11

Offshore is managed by GC Investment Management LLC, an investment

adviser registered with the SEC in reliance upon GC Advisors LLC’s

registration. For a detailed description of GC Advisors LLC and GC

Investment Management, LLC and their respective investment advisory

fees, see GC Advisors LLC’s Form ADV Parts 1 and 2A on file with the SEC.

Golub Capital Partners 11, L.P.

2/17/2017


Table of Contents

3

SECTION 01 Overview of Golub Capital 04

SECTION 02 Why U.S. Middle Market Lending 9

SECTION 03 The Golub Capital Advantage 19

SECTION 04 Why GCP 11 24

APPENDIX A Direct Lending Canvas & Golub Capital Capabilities 30

APPENDIX B Experienced Team of Professionals 34


Overview of Golub Capital 01

CONFIDENT IAL | FOR DISCUSSION PURPOSES ONLY 5

Overview of Golub Capital

− Over $20 billion of capital under management1

− Founded in 1994

− Over 300 employees with more than 100 investment professionals

− Award-winning middle market lending franchise2

− Top-performing broadly syndicated loan business3

Golub Capital Credit Platform

Direct Lending Broadly Syndicated Loans

Over $18 billion under management1,4,5

− First lien loans

− One-stop loans

− Flexible debt for high growth companies

− Junior debt & equity co-investments

− Capital markets capabilities

Over $3 billion under management1,5

− First lien loans

− Second lien loans

− CLO Liabilities

1. Invested and available capital as of January 1, 2017.

2. Please see page titled, “Golub Capital Industry Recognition.”

3. Since 2007, Golub Capital has generated average annual equity cash flows in excess of 20% on its BSL CLO equity tranches. Additional support for this claim is available on request.

4. Includes Middle Market Lending and Late Stage Lending.

5. Investments are indirectly held through holding companies, financing securitizations (CLOs) or bank credit facilities.

Source: Golub Capital internal analysis as of January 1, 2017.


Over $20 Billion1

TaxEfficientFunds

PEARLSSeparateAccounts

PrivateLimited Partnerships

BusinessDevelopmentCompanies4

6

Diversified Sources of Equity Capital

.

1. Invested and available capital as of January 1, 2017.

2. Includes Golub Capital BDC, Inc. (NASDAQ: GBDC) and Golub Capital Investment Corporation.

Note: Please refer to Important Investor Information at the end of this presentation.

Vehicle: Primarily, the Golub Capital Partners Funds (“GCP Funds”)

Capital Under Management: Over $15 B1

Vehicle: Public and Private Business Development Companies


Vehicle: Separately Managed Account


Vehicle: Golub Capital Insurance Fund (“GIDF”)


Golub Capital Industry Recognition

1. Golub Capital has been a top 3 US Middle Market Bookrunner each year from 2008 through Q4 2016 for senior secured loans of up to $500MM for leveraged buyouts (according to Thomson Reuters LPC and internal data; based on number of deals). Please see page titled, “Leading Market Position.”

2. Golub Capital has been recognized as the “Best Business Development Company (2015)” based upon an annualized two-year return.

3. Golub Capital paid a nominal fee for consideration in these award nominations.

Note: Such recognitions included herein are not indicative of future performance.

− U.S.A. Credit Asset Manager of the Year3 (2014)

− Top 3 US Middle Market Bookrunner1

(2008– Q4 2016)

− Senior Lender Firm of the Year3

(2012)

− Middle Market Lender of the Year (2010)

− Lender of the Year, Americas (2015)

− Senior Lender of the Year, Americas (2015)

− Business Development Company of the Year (2015)

− Best Business Development Company2

(2015)

− U.S.A. Lender of the Year3 (2016)

− Pharma & Medical Device Deal of the Year, Americas3 (2015)


2.30%

0.93%

0%

1%

2%

3%

8

Disciplined Credit Selection Drives Below-Average Default Rates

Historical Market BSL Default Rates vs. Golub Capital Middle Market Default Rates2004–2016 (ANNUAL AVERAGE)

137 bps

1. Standard & Poor’s Leveraged Commentary & Data (The S&P/LSTA Leveraged Loan Index is a market value-weighted index designed to measure the performance of the U.S. broadly syndicated leveraged loan market. The S&P/LSTA Leveraged Loan Index typically encompasses anywhere from 90%-95% of the entire broadly syndicated leveraged loan market). Leveraged loan default rate by principal amount.

2. Data calculated as the aggregate principal amount of leveraged loans on a cost basis that experienced an uncured payment default during the year, expressed as a percentage of aggregate outstanding leveraged loans at the end of the period. Data is a composite of Golub Capital loans and not specifically loans that are held by any Golub Capital managed entity including CLOs.

Note: There is no guarantee that future investments will maintain historical default levels. All indices designed, calculated and published by third parties and presented herein are the property of their respective owners. Golub Capital makes no representations about the accuracy or appropriateness of the data reported by such third party data sources and such companies have not endorsed the contents of this presentation.

Golub Capital2Industry1


Why U.S. Middle Market Lending 02


A Snapshot of the U.S. Middle Market

Source: National Center for the Middle Market, 4Q 2016 Middle Market Indicator Infographic

MORE THAN

$10 trillionIN ANNUAL REVENUE

48 million

GLOBAL ECONOMY

3rdLARGEST

NEARLY

33%OF PRIVATE SECTOR GDP

TOTAL JOBS


Banks have significantly reduced their U.S. middle market lending activity

11

The Departure of Banks from the U.S. Middle Market

Source: Standard & Poor’s High-End Middle Market Lending Review 4Q 2016.

All indices designed, calculated and published by third parties and presented herein are the property of their respective owners. Golub Capital makes no representations about the accuracy or appropriateness of the data reported by such third party data sources and such companies have not endorsed the contents of this presentation.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Domestic bank FinCo/Institutional

Market Participation For Middle Market Loans


U.S. Middle Market Firms Outpace the Broader Market

0%

2%

4%

6%

8%

10%

12%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16

GCAI S&P 500 GDP

Y-O

-Y R

ev

en

ue

Gro

wth

%

As of December 31, 2016.Source: Golub Capital Middle Market Report 4Q 2016. Golub Capital Altman Index (“GCAI”) measures the median revenue and earnings growth of more than 150 privately owned companies in the Golub Capital loan portfolio for the first two months of each calendar quarter. It compares these results to the financial performance of public companies in well-known market indexes, including the S&P 500 and S&P SmallCap 600, as well as the quarterly Gross Domestic Product (“GDP”). The index is produced by Golub Capital in collaboration with renowned credit expert Dr. Edward I. Altman. For more information, including a description of the methodology used to create the report, please visit golubcapital.com/middle-market-report.


U.S. Middle Market Loans: An Attractive Asset Class

Sources: Standard & Poor’s High-End Middle Market Lending Review 4Q 2016. Middle market defined as issuers with EBITDA of $100MM or less, Standard & Poor’s LCD Interactive High-Yield Report and LCD News.

Note: Golub Capital proprietary analysis based on the characteristics of typical middle market loans, broadly syndicated loans, and high yield bonds as of December 31, 2016. Characteristics of individual assets could vary significantly from the indicative terms presented above.

Middle Market Loans Broadly Syndicated Loans High Yield Bonds

Borrower Size EBITDA less than $100MM EBITDA $100MM+ EBITDA $100MM+

Borrower DebtCapital Structure

Simple /More Conservative

Complex /Less Conservative

Complex /Less Conservative

Security Interest Senior Secured Senior Secured Generally Unsecured

Covenants Maintenance Covenants Typically Cov-Lite Cov-Lite

Interest Rate Sensitivity Low / Floating Rate Low / Floating Rate High / Fixed Rate

Lender Influence on Debt Structure High Low Low

Credit MonitoringCapability

High Potentially Limited Limited

Workout Process More Control Less Control Less Control


The Golub Capital Advantage 03


The Golub Capital Advantage

15

Source: Golub Capital internal analysis as of December 31, 2016.

Note: This slide is accompanied by the footnotes at the end of this presentation.

1. Recurring business from private equity relationships1

2. Repeat opportunities from over 200 borrowers2

3. Lead arranger on more than 90% of new deals3

4. A leading provider of buy-and-hold and one-stop solutions4

5. Proven credit discipline5

6. Gold standard infrastructure, team and technology6

7. Alignment of interests with limited partners7


We believe private equity sponsors give Golub Capital early looks and last looks because of our reliability, market leadership and broad product offerings

16

Recurring Business From Private Equity Relationships


At least one debt financing with over

220middle market

sponsors

75%Of our deals in 2016, 2015, 2014,

2013 and 2012 were with repeat sponsors

Over

140sponsors

Multiple financings with over


We believe lending to sponsor-backed companies is less risky and helps us select better credits, maintain better portfolio performance and achieve better problem resolution than lending to non-sponsored companies

17

The Sponsor Advantage

− Sponsors filter for quality and tend to be highly selective

− Sponsors specialize in creating equity value and implementing credit-enhancing strategies

− Sponsor-backed deals have a lower chance of default*

Credit Selection

Portfolio Performance

Problem Resolution − Access to operating partners with turnaround expertise

− Capacity to change management in underperforming companies

− Aligned, motivated ownership

− Managerial and operational resources help avoid downside scenarios

− Ability to invest additional equity to overcome temporary setbacks

* Source: Dai, S. (2016, August 16). PE Loans Post Lower Default Rates Than Nonsponsored Loans. WSJ Pro PE.

Note: Not all sponsored deals will have all of these characteristics. Past performance is no guarantee of future results.


44%

61%

49%53% 51%

2012 2013 2014 2015 2016

We expect that Golub Capital’s existing middle market portfolio of over 210 borrowers will continue to generate repeat financing opportunities

18

Existing Borrower By %

Repeat Opportunities From Existing Borrowers

1. Loans are made by various Golub Capital entities.


Advantages of Being an Incumbent Lender

− Generally, the first call to lead follow-on transactions (add-ons, refinancings, recapitalizations)

− Ability to maintain borrower relationships in connection with sponsor-to-sponsor transactions

Over the past 5 years, approximately 40% of the firm’s new commitments were with companies where Golub Capital had been an existing lender1


We believe acting as a lead arranger provides distinct advantages versus a participating role

19

Golub Capital as a Lead Arranger or Co-Bookrunner*

Golub Capital as a Lead Arranger

* As a percentage of all transactions executed by the Middle Market Lending Business of GC Advisors LLC and its affiliates. Excludes add-ons.

Source: Golub Capital internal analysis as of December 31, 2016. Past performance is no guarantee of future results.

− Lead arrangers control pricing, deal structure and terms

− Lead arrangers generally receive higher deal fees

− Lead arrangers typically have more time and more access to management during diligence prior to investing

− Lead arrangers have better portfolio monitoring capabilities

Lead discussion with sponsor and obligor

First to receive monthly financial and covenant packages

Control workout process in the event of a default to secure the highest possible recovery value

− Lead arrangers enjoy the advantages of incumbencies, and incumbencies can provide steady deal flow

“Go to” lender for add-on opportunities, refinancings and financing for new owners

76% 76%

88%90%

95% 94%

0%

25%

50%

75%

100%

2011 2012 2013 2014 2015 2016


Leading Provider of One-Stop Loans and Buy-and-Hold Solutions

40% Equity

45% Senior

15% Mezzanine1

50% Equity

50% One-Stop

Senior/Mezzanine Structure One-Stop Structure

One-stop loans and buy-and-hold solutions provide a win-win for limited partners and sponsors

Win-Win of the One-Stop

− For investors2

First lien, first-out senior secured debt Yield premium to traditional senior debt3

Better protection than junior debt

− For sponsors Greater ease of execution One class of debt; no intercreditor complexities Lower cost of debt over time

Win-Win of the Buy-and-Hold Solution

− For investors2

Differentiated offering

Advantage of leading transactions4

Well positioned for repeat business5

− For sponsors

Greater certainty of closing

No flex; no syndication risk

Typically one relationship lender, not many desk buyers

1. May be capitalized with second lien debt.

2. Golub Capital internal analysis as of December 31, 2016.

3. Standard & Poor’s Leveraged Commentary & Data Middle Market Review 4Q 2016

4. Please see slide titled, “Golub Capital as Lead Arranger.”

5. Please see slide titled, “Repeat Opportunities from Existing Borrowers”

Source: Standard & Poor’s Leveraged Commentary & Data. Golub Capital internal analysis as of December 31, 2016. This is an example structure; the actual structure of any particular investment may vary materially from that shown. Investments are indirectly held through holding companies, financing securitizations (CLOs) or bank credit facilities


1,402

1,581

1,927

2,268

2,388 2,384

58 74 60 59 79 57

0

500

1,000

1,500

2,000

2,500

2011 2012 2013 2014 2015 2016

21

Direct Origination Engine with Proven Credit Discipline

We believe Golub Capital’s direct origination strategy, scale and market position create a wide deal funnel, allowing us to maintain selectivity and credit discipline

* Includes Middle Market Lending deals only.Past performance is no guarantee of future results.

NU

MB

ER

OF

DE

AL

S

Deals Reviewed Deals Closed* % of Deals Closed

4.1% 4.7% 3.1% 2.6% 3.3% 2.4%


Gold Standard Resources

Infrastructure Characteristics

− Best-in-class infrastructure and technology

− Carefully designed systems and workflows

− Policies and procedures structured to promote quality and reduce risk

* Investments are indirectly held through holding companies, financing securitizations (CLOs) or bank credit facilities.

Compliance

Fund and Client Financial Reporting

Human Resources

Investor Relations

Legal

Marketing

Operations

Operational Risk Management

Technology Solutions

Treasury

First Lien Loans*

One-Stop Loans*

Flexible Debt for High Growth Companies*

Junior Debt and Equity Co-Investment*

Capital Markets Capabilities

First Lien Loans*

Second Lien Loans*

CLO Liabilities*

Investment Products

Broadly Syndicated Loans

Middle Market Lending and Late Stage Lending

Resources


Alignment of Interest

− Principals, employees and their families have over $250MM committed in the Firm’s various funds

Affiliate Investments

Aligned Compensation

Attractive Fee Structure − Preferred return and full clawback

− No fee on undrawn commitments

− Senior professionals share in the Firm’s performance through GC Ownership Plan

− Compensation of investment professionals tied to credit losses

− Compensation structure drives focus on deal performance rather than deal volume


Why GCP 11 04


Proprietary GCP Fund Structure


2. Please see slides titled, “GCP Portfolio Highlights.”

There is no guarantee that all of these objectives will be met. Investment carries the risk of loss.

Advantages of GCP 111,2

1. Diversification

2. Immediate access to a seasoned, healthy portfolio

3. Efficient ramp-up and ramp-down periods

4. Access to diversified leverage facilities


GCP Portfolio Highlights1

Top 10 Investments12%

14%

2%

2%

3%

3%

3%

4%

6%

7%

8%

10%

18%

20%

Other

Insurance

Printing and Publishing

Aerospace and Defense

Personal and Non Durable Consumer Products (Mfg. Only)

Diversified/Conglomerate Manufacturing

Automobile

Personal, Food and Miscellaneous Services

Beverage, Food and Tobacco

Electronics

Retail Stores

Diversified/Conglomerate Service

Healthcare, Education and Childcare

Investments by IndustryPosition Size (0.2% avg. size)

Top 25 Investments25%

Remaining 413 Investments75%


2. Industries with less than 2% exposure.

Reflects Golub Capital Partners Domestic Funds portfolio highlights as of December 31, 2016.

2


1. Please see slide titled, “GCP Portfolio Highlights.”

2. The Portfolio Life-cycle illustration depicts the ramp-up and ramp-down periods a typical private credit fund experiences during its life-cycle.

3. The “J Curve” effect refers to losses that may occur at the beginning of a fund’s life, such as those that commonly occur with a traditional private equity fund. GCP 11 may experience somewhat lower returns at the beginning of its life, but it is designed to avoid this traditional J Curve effect. For more information on J Curve risk and other risks the fund may be subject to, please see the private placement memorandum for the fund

27

The GCP structure seeks to avoid sub-optimal ramp-up and ramp-down periods and J-curve risk

GCP Funds Deliver Efficient Structure

J-curve Illustration3

Economic Benefit

Time

1.Ownership in an existing, diversified portfolio of loans1 over the entire fund life

2. Immediate quarterly distributions

3. No J-curve risk

Re

turn

s

GCP 11Sample Private Equity Fund

Portfolio Life-cycle Illustration2

Time

GCP 11Sample Private Credit Fund

Portfolio fully invested

Po

rtfo

lio


Leverage primarily takes the form of long-term financing securitizations (CLOs), of which the GCP funds typically retain the junior securities, or bank credit facilities

28

FINANCING SECURITIZATIONS(CLOs)*

Efficient Use of Leverage

Favorable

LessFavorable

BANK CREDIT FACILITIES

VeryFavorable

* Source: Golub Capital internal analysis and views as of December 31, 2016. These views are dependent upon market conditions and may change based upon market conditions.

FLEXIBILITY LOW COST TENOR AVAILABILITY FLEXIBILITY LOW COST TENOR AVAILABILITY


A Compelling Investment Opportunity


2. National Center for the Middle Market, “4Q 2016 Middle Market Indicator.”

3. Standard & Poor’s “LCD Middle Market Review 4Q 2016” – New-issue first-lien yield-to-maturity.

4. Please see slide titled, “Leading Market Position.”

5. Please see slide titled, “Gold Standard Resources.”

6. Performance is available upon request. Past performance is no guarantee of future results.

7. Please see slide titled, “GCP Funds Deliver Efficient Structure.”

8. P&I Magazine, “Investing In Middle Market Loans Supplement” (accessible at: http://bit.ly/1SM6vDo).

9. Golub Capital’s investment professionals, and their families, have over $250MM committed as limited partners to Golub Capital’s funds.

Based on Golub Capital internal analysis as of December 31, 2016.

We believe Middle Market Lending is an attractive investment in today’s environment

− Designed to excel in uncertain times and offers strong principal protection2

− Historically generated returns above large corporate loans3

− Provides a natural hedge against interest rates

Right Strategy:Middle Market Lending1

We believe Golub Capital is well-positioned to capitalize on the opportunity in middle market lending

− Leading market position with direct sponsor origination model4

− Broad product offering in the middle market5

− 20+ year operating history in the middle market

− Proprietary sourcing from repeat business with private equity firms and current borrowers

Right Manager:Golub Capital

Right Structure:GCP 11

We believe GCP 11 is the right vehicle for investing in middle market lending

− History of strong returns for precedent Golub Capital funds6

− Investor-friendly fee structure with no “J curve”7

− Historically low volatility with quarterly cash distributions of profit8

− Alignment of interests with management9


Appendix:Direct Lending Canvas & Golub Capital Capabilities A


Characteristics Golub Capital Focus Potential Alternative Options

Geographic Focus U.S. Non-U.S. or Mixed

Borrower Size Middle Market Small or Large Companies

Capital Structure Focus Senior Debt Junior Debt or Mixed

Borrower Ownership Sponsored Non-Sponsored

Risk Appetite Clean Business Storied Businesses

Investment Model Asset Manager Syndicator or Mixed

Sourcing Strategy Originator Desk Buyer

Suite of Products Broad Product Offering Limited Product Offering

Track Record* Long, Consistent Short, More Volatile

Capital Base Diversified, Long-Term Capital Base Single Investor

Direct lending strategies may vary on a broad number of characteristics – we believe investors should focus on a few main points and choose managers which meet the objectives they are seeking

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Direct Lending Canvas

* Performance is available upon request. Past performance is no guarantee of future results.This list is meant as a sample of potential ways in which managers may differ. Investors should determine which characteristics are right for their desired investment profile.Source: Golub Capital internal analysis as of December 31, 2016.


Gold Standard Team

As of December 31, 2016.

* Golub Capital’s “Middle Market Lending” team includes: Origination, Underwriting, Capital Markets, Restructuring/Workouts, Late Stage Lending, and PEARLS/Club Finance investment professionals.

Middle Market Lending*85 Investment Professionals, including:12 Originators57 Underwriters

Portfolio Monitoring12 Investment Professionals

Broadly Syndicated Loans10 Investment Professionals

Business Development, Marketing & Investor Relations

Investing Corporate

Organizational Summary

Executive Management

Finance, Operations & Administration135 Team Members

Legal, Compliance & Strategic Finance18 Team Members

Treasury - Structured Finance2 Team Members

Business Development7 Professionals

Corporate Strategy & Development5 Team Members

Product Specialist7 Team Members

Marketing18 Team Members

Investor Relations23 Team Members


Golub Capital has invested over $15MM in customized loan management systems, proprietary portfolio monitoring capabilities and workflow automation.

33

Our technology systems are flexible and scalable to support growth, manage operational risk and streamline processes

− Allows Golub Capital’s deal professionals, senior management, finance and operations teams to manage the portfolio, examine analytics in real time and enhance decision-making

− Permits Golub Capital to provide key third party constituents with detailed reports on portfolios

Gold Standard Technology

Customized Reporting

Customized Dashboards

Forecasting Analysis

WorkflowManagement

Portfolio ManagementRepository


Appendix: Experienced Team of Professionals B


Experienced Team of Professionals

NAME TITLEYEARS

EXPERIENCE PREVIOUS WORK EXPERIENCE

Lawrence E. Golub Chief Executive Officer 32 years Bankers Trust; Wasserstein Perella; Allen & Company

David B. Golub President 29 years Centre Partners; Centre Pacific; Corporate Partners/Lazard

Middle Market Lending

Andrew H. SteuermanHead of Middle Market Lending &Late Stage Lending

27 years Albion Alliance; Bankers Trust; New York Life

Gregory W. Cashman Senior Managing Director 24 years Bristol-Myers Squibb; Arthur Andersen

Spyro G. Alexopoulos Managing Director 18 years Silver Point Capital; GE Capital

Brian J. Carroll Managing Director 19 years CapitalSource; GE Capital; Ernst & Young

Hyun J. Chang Managing Director 14 years JP Morgan; ABN AMRO

Brian M. Crabb Managing Director 17 years Fifth Third Bank; CapitalSource; GE Capital

John C. (Chip) Cushman Managing Director 21 years GE Antares; Oaktree Capital Management; Deutsche Bank

Peter B. Fair Managing Director 23 years NXT Capital; Velocity Financial Group; TriplePoint Capital

Matthew B. Fulk Managing Director 15 years Indosuez Capital

Patrick W. Hayes Managing Director 29 years GE Capital Corporation; Heller Financial

Michael C. Loehrke Managing Director 20 years Monroe Capital; GE Asset Management; Arthur Andersen

Michael M. Meagher Managing Director 13 years Deutsche Bank; Preferred Real Estate Investments, Inc.

Troy A. Oder Managing Director 19 years Merrill Lynch Capital; Fleet Capital; Arthur Andersen



NAME TITLEYEARS


Middle Market Lending (continued)

Stefano F. Robertson Managing Director 21 years Antares Capital; Antares Special Opp. Partners; LaSalle Bank

Marc C. Robinson Managing Director 20 years Fulcrum Strategy; Freeport Financial; GE Capital

Robert G. Tuchscherer Managing Director 18 years GE Antares Capital; Heller Financial

Jason J. Van Dussen Managing Director 21 years CIT; FirstLight; GE Capital

Joseph T. Wilson Managing Director 30 years Citigroup; JP Morgan

Jon A. Charette Principal 16 years RBS Securities; First Union Capital Markets

Craig Palmer Principal 16 years Balyasny Asset Management; Merrill Lynch; LaSalle Bank

Robert B. Sverbilov Director 9 years NXT Capital; Medley Capital; Exigen Capital

Broadly Syndicated Loans

Christina D. Jamieson Head of Broadly Syndicated Loans 32 years Morgan Stanley Investment Management; Bank One/First Chicago

Dan P. Baginski Director of Investments 22 years GSO Capital Partners; RBC Capital Partners; Mizuho Financial Group

Scott M. Morrison Director of Research 22 years Deerfield Capital Management; NationsBank

Kenneth A. Selle Head Loan Trader 33 years Deerfield Capital Management; Bank One Capital Markets

Structured Products

Craig Benton Head of Structured Products 16 years Wachovia

Alan George Director, Structured Products 12 years LaSalle Bank



NAME TITLEYEARS


Corporate Strategy & Development

Gregory A. RobbinsManaging Director, Head of Corporate Strategy and Development

19 years Indosuez Capital; Saw Mill Capital

Jonathan D. Simmons Director 12 years Churchill Financial; JP Morgan

Ravdeep S. Anand Director 14 years Pernod Ricard; Pillsman Partners; Evercore Partners, Deutsche Bank

Business Development & Investor Relations

Alissa GradManaging Director, Co-Head of Business Development

16 years D.B. Zwirn & Co.; TAG Associates; JP Morgan

Karen Halliday Managing Director 25 years Silver Point Capital; GE Capital; Deutsche Bank/Bankers Trust

Richard D. Jacobson Managing Director 22 years Stern Capital; Indosuez Capital; SG Cowen; Chemical Bank

Ross Van der Linden Managing Director 18 yearsStormHarbour Securities/Fusion Advisory Partners; Wells Fargo/Wachovia

Michele D. Joyeux Co-Head of Business Development 12 years Ernst & Young

Mary P. Zillitto Director of Investor Relations 11 years Tekmark Global Solutions

Adam B. Kneller Director 11 years Welton Investment Partners; Seix Investment Advisors; BlackRock

Product Specialist

Jonathan Sachs Director 10 years J.P. Morgan Asset Management; UBS Global Asset Management



NAME TITLEYEARS


Corporate

Frank P. StraubChief Financial Officer &Chief Administrative Officer

21 years Deerfield Capital Management; Archipelago Exchange

Joshua M. LevinsonCo-General Counsel &Chief Compliance Officer

15 years Magnetar Capital; King & Spalding; Wilson Sonsini

Jenifer S. Brooks Chief Marketing Officer 21 years Bloomberg, L.P.; Siegel & Gale; Fulbright & Jaworski, L.L.P.

Susan M. Czarnecki Senior Director of Technology 32 years Morgan Stanley Investment Management; Van Kampen Investments

Judith A. RuschSenior Director, Operational Risk, Change Management & Administration

28 years GE Asset Management; Antares Capital; Ernst & Young

Martin J. McGrathChief Financial Officer, Private Funds

21 yearsTygris Commercial Finance; Merrill Lynch Capital; GE Commercial Finance

Ross A. TeuneChief Financial Officerof Golub Capital BDC

22 years Merrill Lynch Capital; Antares Capital; Heller Financial


Investment Committee Member Biographies

32 years of principal investing experience

− Established the capital markets group and debt restructuring practice for Wasserstein Perella & Co., Inc.

− Engaged in principal investing, work outs and M&A at Allen & Company Incorporated

Active in civic and charitable activities

− Member of the Financial Control Board of the State of New York

− President of the Harvard University JD-MBA Alumni Association

− Treasurer for 15 years of the White House Fellows Foundation

Education

− Harvard College, AB ‘80, magna cum laude

− Harvard Law School, JD ’84, Harvard Law Review

− Harvard Business School, MBA ’84, Baker Scholar

Lawrence GolubChief Executive Officer




− Joined Golub Capital in 2003 (served as a director since 1995). Prior thereto:

− Managing Director of Centre Partners/Lazard

− Founder and former chairman of Centre Pacific LLC, a manager of leveraged loans and high yield bonds with over $3 billion under management while he was employed there

Board Memberships

− Board member of Burton Snowboards

− Former board member of Tyco Toys (NYSE), Dollar Financial (NASDAQ) and numerous private companies

− Board member (formerly Chairman) and long-standing Director of the Michael J. Fox Foundation for Parkinson’s Research

Past civic and charitable activities

− Hudson Guild Board of Directors

− World Policy Institute Advisory Board

Education

− Harvard College, AB ‘83, magna cum laude

− Oxford University, Mphil ‘85, Marshall Scholar

− Stanford Business School, MBA ‘87, Arjay Miller Scholar

David GolubPresident




− Heads Golub Capital’s Middle Market Lending and Late Stage Lending groups – overseeing origination, deal execution and capital markets and is a member of the firm’s investment and watch list committees. Prior thereto:

Managing Director at Albion Alliance

Vice President at Bankers Trust Alex Brown

Senior member of the Private Equity Group atNew York Life Insurance Company

− Advisory director of a number of Golub Capital’s portfolio companies

Education

− Pace University, BBA in Finance

− St. John’s University, MBA

Andrew H. SteuermanHead of Middle Market Lending& Late Stage Lending


− Member of Golub Capital’s investment and watch list committees, and originates, executes and monitors investments for the firm. Prior thereto:

Manager of Business Development for the venture capital arm of Bristol-Myers Squibb’s Consumer Medicines Division

Senior Accountant of Arthur Andersen & Co.

− Director or advisory director of a number of Golub Capital’s portfolio companies

Education

− University of Virginia, BS in Commerce

− Darden School of Business, MBA

Gregory W. CashmanSenior Managing Director


Additional Footnotes

Golub Capital Advantage

1. Please see slide titled, “Recurring Business From Private Equity Relationships.”

2. Please see slide titled, “Repeat Opportunities from Existing Borrowers.”

3. Please see slide titled, “Golub Capital as Lead Arranger.”

4. Please see slide titled, “Leading Provider of One-Stop Loans and Buy-and-Hold Solutions.”

5. Please see slide titled, “Direct Origination Engine with Proven Credit Discipline.”

6. Please see slide titled, “Gold Standard Resources.”

7. Please see slide titled, “Alignment of Interest.”


Important Investor Information

Golub Capital (including its various affiliates) creates and manages multiple investment funds. One of its control affiliates, GC Advisors LLC (“GC Advisors”), is registered as an investment adviser with the United States Securities and Exchange Commission (“SEC”). A number of other

investment advisers, such as GC Investment Management LLC, GC Synexus Advisors, LLC and Golub Capital International Management, LLC (collectively, the “Relying Advisers”), are registered in reliance upon GC Advisors’ registration. GC Advisors and the Relying Advisers

manage certain of Golub Capital’s affiliated funds. For a detailed description of GC Advisors and the Relying Advisers and their investment advisory fees, please see GC Advisors’ Form ADV Parts I and 2A on file with the SEC. The beneficial owners of Golub Capital are also the

beneficial owners of GC Advisors and the Relying Advisers. Certain references to Golub Capital relating to its private fund business may include activities other than the activities of GC Advisors or the Relying Advisers, or may include the activities of other Golub Capital affiliates in addition to

the activities of GC Advisors and the Relying Advisers.

The performance results are presented for Golub Capital’s managed funds as indicated. The performance presented does not represent the return of any individual investor. An individual’s net or

gross return may differ significantly due to differences in timing of investment. In fact, net or gross returns may be significantly higher or lower than an investor’s estimated return. Gross returns show gross performance of Golub Capital funds. Gross performance does not reflect a

deduction for management fees and/or incentive fees. Net returns reflect the deduction of all fund expenses including performance and investment advisory fees. For more detailed financial information, please refer to the financial statements that are provided as part of the standard

reporting package each quarter. Past performance does not guarantee future results.

Golub Capital investments are valued at each quarter-end at their fair value consistent with ASC Topic 820 and Golub Capital’s valuation policies and procedures. The Internal Rate of

Return (“IRR”) is the annualized effective compound rate of return and is based on starting capital accounts, distributions, capital calls, and ending capital accounts. The IRR performance calculation includes historical cash flows (in the case of investments, this includes the initial

investment, interest and principal received, and any additional receipts or payments, and in the case of funds, this includes all capital contributions and distributions) as well as the current fair value of each portfolio loan or other investment still outstanding. The current fair value of

outstanding portfolio loans or other investments that are not actively traded is determined in accordance with the valuation policies and procedures as summarized in GC Advisors’ Form ADV Part 2A.

The determination of the current fair value of each portfolio loan or other investment is based on several inputs, including, among other factors, scheduled payments and comparable market yields. Because many of the loans or other investments are not actively traded, this determination of

current fair value is a material factor in determining IRR performance. Actual amounts subsequently realized on an investment may differ materially from the current fair value, and accordingly the actual IRR performance may differ materially from that stated herein.

The value of investments and the income derived from investments can go down as well as up. Future returns are not guaranteed, and a loss of principal may occur. An investment in any

Golub Capital affiliated fund will be subject to a variety of risks (which are described in that affiliated fund’s confidential offering memorandum), and there can be no assurance that any Golub Capital affiliated fund will meet its investment objective or that any such fund will not

incur losses. Certain statements herein constitute forward-looking statements, which relate to future events, future performance or financial condition, and are subject to change for any reason.

Special Disclosure related to Golub Capital Insurance Fund (“GIDF”): The Golub Capital Insurance Fund Series of the SALI Multi-Series Fund, L.P. (the “Series”) is a private investment fund for which GC Advisors LLC serves as nondiscretionary subadviser. The

investment manager, SALI Fund Management, LLC (the “Adviser”) retains investment discretion over the Series, and GC Advisors makes investment recommendations to the Adviser. While the Adviser is not bound to follow the recommendations of GC Advisors, it has historically done so.

The GIDF investment objective is to provide investors with exposure to the credit markets, with an emphasis on U.S. middle market lending. Investments in the Series are available only to variable life insurance and variable annuity contracts sold through licensed insurance brokers in compliance

with applicable laws. GIDF may invest its capital into funds managed by GC Advisors and/or its affiliates. As such, GIDF should not be considered a proper diversification tool by investors who also invest in funds advised by GC Advisors or its affiliates.

The portfolio funds’ investments are valued each quarter-end at their fair value consistent with ASC Topic 820 and GC Advisors and the Adviser’s valuation policies and procedures. The fair value of outstanding portfolio loans or other investments that are not actively traded is

determined by GC Advisors and the Adviser in accordance with their valuation policies and procedures, which are summarized in the GC Advisors’ and the Adviser’s Form ADV Part 2A. This determination is based on several inputs, including, among other factors, scheduled

payments and comparable market yields. Because many of the loans or other investments are not actively traded, this determination of fair value is a material factor in determining performance. Actual amounts subsequently realized on an investment may differ materially

from the fair value, and accordingly the actual performance may differ materially from that stated herein.

The Adviser is an investment adviser registered with the SEC. For a detailed description of the

Adviser and its investment advisory fees see the Adviser’s Form ADV Parts 1 and 2A on file with the SEC.

Before making the investment decision with respect to the Series and related insurance

company products, potential investors are advised to read carefully the Series Supplement, limited partnership agreement and related insurance contract, and to consult with their tax, legal and financial advisors. As described in the Series Supplement, investments in hedge

funds and funds of hedge funds are speculative and should only be made by sophisticated investors that can afford the risk of loss.

This document is intended for investor information and broker-dealer/financial institution

internal use only. Do not copy. Do not distribute.

Documents

Golub Capital Partners 11 Fund Summary - · PDF file17.02.2017 · Golub Capital Partners 11 Fund Summary Sector: Strategy: Sub-Strategy: Cash Flow Lending U.S. Middle Market Lending