Golub Capital BDC Prorates Q2 Redemptions as Demand Outruns Quarterly Cap

Golub Capital Private Credit Fund received repurchase requests totaling approximately 8.5% of common shares outstanding for the tender period opening May 1, 2026 — above the fund’s 5% quarterly cap — and will fulfill approximately 59% of those requests on a prorated basis, the firm disclosed in a shareholder letter this month.

The perpetual nontraded business development company, known as GCRED, will repurchase approximately 8.89 million shares at $24.14 net asset value per share as of March 31. Requests were concentrated among a small subset of shareholders, Golub Capital said, with approximately 5% of GCRED’s more than 12,000 shareholders accounting for the bulk of the tendered shares.

The shortfall reflects a liquidity management dynamic that has emerged across the nontraded private credit sector as redemption demand has outpaced the quarterly caps built into these structures.

AltsWire previously reported that Apollo Debt Solutions BDC’s recent tender offer drew redemption requests for more than twice the shares the fund was willing to repurchase under its 5% quarterly cap. The fund accepted approximately 45% of the shares tendered.

HPS Corporate Lending Fund paid approximately $610.8 million on or about April 30 to repurchase shares tendered in its first-quarter 2026 share repurchase offer, accepting roughly 54% of the shares investors sought to redeem.

Golub Capital said the fund maintains approximately $4.1 billion in liquidity and expects to sustain its quarterly repurchase program at the 5% cap “for the foreseeable future.” The fund has also seen new subscriptions totaling approximately 14 million shares year-to-date through April 30, 2026.

“The program seeks to balance offering limited and periodic liquidity with a careful matching of the tenor of the fund’s capital base and its investment portfolio,” the firm said in the letter.

Golub Capital said the portfolio’s credit metrics held up through the quarter. As of the end of March, approximately 99% of the portfolio was in first lien investments at fair value, with an average loan-to-value of 43.4% across 498 portfolio companies. The firm said approximately 98% of investments carried Golub Capital’s two highest internal performance ratings, and less than 0.1% of the portfolio was on nonaccrual.

As of March 31, the fund’s aggregate NAV was approximately $4.5 billion, the fair value of its portfolio investments was approximately $9.9 billion, and it had approximately $5.6 billion of debt and short-term borrowings outstanding. The company’s debt-to-equity leverage ratio was 1.25x and GAAP debt-to-equity ratio, net, was 1.23x.

GCRED, which focuses on senior secured, floating rate loans to U.S. middle-market companies, has generated an 8.8% annualized net return since inception through March 31, which Golub Capital said outperformed U.S. broadly syndicated loans by 1.3 percentage points and investment grade corporate bonds by 3.6 percentage points.

Visit the AltsWire directory page.