Golub Capital planning UAE presence to raise more funds for private credit investment

Golub Capital, a $60-billion direct lender and asset manager, plans to set up a UAE office to broaden the pool of its regional investors and raise more money for its private credit strategies, its chief executive has said.

A permanent presence in the UAE will not only open new avenues of funding for Golub in the Arab world’s second-largest economy, but also across the wider Gulf and Mena regions, Lawrence Golub told media in an interview in Abu Dhabi.

A future base in the UAE is in line with the company’s plans to increase its global footprint. However, Golub has yet to decide where in the Emirates it will set up its base.

“At some point in the future, we’ll have a permanent office here,” Mr Golub said of the UAE.

“We have expanded to London and we have 20 people there. We just recently announced opening a small office in Hong Kong. So, opening an office in the Gulf region will be very consistent with the other places. We are big believers in having regular local presence.”

The primary focus of the company’s office in the UAE would be to raise funds for its private credit strategies as it maintains its focus on its core industry verticals.

Established in 1994, Golub lends to companies in four sectors: software and technology, financial services and diversified industries, restaurant and retail, and health care.

It lends primarily to private equity-backed, mid-market companies – commercial entities that are larger than small and medium-sized organisations but smaller than big corporations – in the US.

The company has managed more than $150 billion in loans since 2004. It was the lead lender in 90 per cent of the more than 2,300 transactions it has carried out during that period in its private credit business.

Private credit refers to non-bank lending where the debt is not issued or traded on the public markets.

It is a fast-growing asset class that extends loans to smaller companies and is referred to as private lending.

Private credit offers direct lending, broader syndicated and mezzanine loans.