Golub Capital’s GCRED Clears Q3 Redemptions in Full as Demand Falls to 4.8%

Golub Capital Private Credit Fund fulfilled 100% of investor redemption requests in its third-quarter tender offer, a sharp reversal from the prior quarter, when demand outstripped the fund’s cap and forced a 59% proration.

Repurchase requests for the tender period that closed July 29 totaled 4.8% of common shares outstanding, below the nontraded business development company’s 5% quarterly cap, according to an August shareholder letter. All tendered shares will be repurchased at net asset value as of June 30, 2026: $24.17 per share for both Class I and Class S shares.

The result marks a turnaround from GCRED’s prior tender, when redemption demand reached 8.5% of shares outstanding and the fund, known as GCRED, prorated fulfillment at approximately 59%, AltsWire reported in May. As in that quarter, requests were concentrated among a small subset of shareholders – about 5% of GCRED’s more than 12,000 shareholders – the company said.

The easing adds to a broader pullback in redemption pressure across several nontraded BDCs this summer. Vista Credit Strategic Lending Corp. saw second-quarter demand fall to 1.8% of shares after being prorated the prior quarter, while Morgan Stanley’s North Haven Private Income Fund prorated its second-quarter tender below the manager’s own guidance. Blackstone Private Credit Fund, the sector’s largest nontraded BDC, held its program at the standard 5% cap in the second quarter after upsizing it the prior quarter to meet a demand surge.

GCRED generated an 8.9% annualized net return to shareholders since inception through June 30, up slightly from 8.8% the prior quarter, according to the letter. The fund reported approximately $4 billion in liquidity sources and had new subscriptions of approximately 17.7 million shares year-to-date through July 29, up from about 14 million shares through April 30.

Several of the fund’s credit metrics weakened in the same period. As of June 30, GCRED’s portfolio totaled approximately $9.6 billion in fair value across 454 portfolio companies, down from $9.9 billion and 498 companies as of March 31. First lien senior secured loans made up 96% of the portfolio, down from 99% the prior quarter, with an average loan-to-value ratio of 45%, up from 43.4%. Approximately 97% of investments carried Golub Capital’s two highest internal performance ratings, down slightly from 98%, and 0.1% of the portfolio was on non-accrual, up from less than 0.1% the prior quarter.

GCRED’s aggregate NAV held roughly steady at approximately $4.5 billion as of June 30, the company reported, while debt and short-term borrowings outstanding declined to approximately $5.3 billion from $5.6 billion the prior quarter. The fund’s debt-to-equity leverage ratio eased to 1.20x from 1.25x, and its GAAP net debt-to-equity ratio fell to 1.18x from 1.23x.

According to a recent AltsWire review of consolidated statements of operations, payment-in-kind income rose at seven of the nine largest nontraded BDCs where the measure can be compared directly in the quarter ended March 31, 2026. Across the nine funds, total PIK income reached approximately $285.4 million against $200.7 million a year earlier, an increase of roughly 42%.

Apollo Debt Solutions BDC recorded the sharpest increase, to $16.1 million from $5.3 million, up 205%. On a percentage basis, the comparison differs: Apollo told investors in June that its PIK income of approximately 2.9% was roughly half its nontraded BDC peer average. Ares Strategic Income Fund’s PIK income more than doubled to $29.2 million, and GCRED’s rose 141% to $11.6 million. Blackstone Private Credit Fund, the largest in the group, reported $131.8 million against $97.9 million.

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