Golub and Ares lead BDC peer group
The guest highlighted Golub Capital and Ares Management as highly respected, top-tier institutional platforms in the Business Development Company (BDC) space.
The argument
When asked to name public BDCs he thinks highly of outside his own firm, the guest pointed to his former firm Golub Capital for its strong credit culture and Ares Management for its long-standing track record and execution.
The thesis, stress-tested
✓ What validates it
- ✓Consistent net asset value (NAV) stability in quarterly earnings reports
- ✓Low non-accrual rates relative to the broader BDC sector
▸ Risks discussed
- ▸Broad macroeconomic headwinds affecting middle-market corporate borrowers
- ▸Potential compression of net interest margins as benchmark interest rates shift
Hear it yourself
"And yet, just looking at the public valuations, it appears that your BDC, which owns things, probably syndicated loans, is trading at a discount that in some instances is greater than BDCs than other BDCs that own mostly private credit."
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