Why Golub Capital

Low Default Rates
1.Payment default rate of Golub Capital first lien middle market leveraged loans is defined as (a) the aggregate principal amount of first lien middle market leveraged loans on a cost basis that are classified as Payment Defaults during the calendar year divided by (b) the aggregate principal amount of first lien middle market leveraged loans outstanding at the end of the period. The Payment Default rate is based on a composite of Golub Capital loans and does not reflect the performance of loans held by any vehicle managed by Golub Capital or its affiliates, including financing securitizations (CLOs). The default rate data for Golub Capital Middle Market Loans started in 2004, the inception of the Golub Capital Partners Funds. A loan is classified as a Payment Default if there is an uncured payment default with respect to principal or interest.

Note: As of December 31, 2023. There is no guarantee that future investments will maintain historical default rates. This page only identifies default rates related to Golub Capital’s middle market funds and strategies, which is a subset of Golub Capital’s products and investment strategies. Although the Fund is expected to have a portfolio comprised of a majority of directly or indirectly privately originated and privately negotiated investments, predominantly through direct lending to U.S. private companies in the middle market and upper middle market in the form of one stop and other senior secured loans, the Fund may invest in other assets as well, including second lien and subordinated loans and liquid credit instruments, which may have different historical default rates than that shown above.

2. Represents the average Loss Rate from 2004 – Q4 2023. The Loss Rate is defined as (a) the sum of (i) realized losses on assets classified as either Defaults or Payment Defaults net of interest and fees received over the life of the loan plus (ii) unrealized losses on assets classified as either Defaults or Payment Defaults, based on the fair value of such unrealized assets as of the date of this analysis; divided by (b) total first lien middle market loan principal outstanding at the end of the period.

Select Accolades
Note: As of December 31, 2023. Please see Additional Footnotes below, which are an integral part of this presentation. The awards may not be representative of any one client’s experience with Golub Capital and should not be viewed as indicative of future performance. Any selection to receive the awards and/or rankings may have been based on a limited universe of participants, and therefore there can be no assurance that a different sampling of participants might not achieve different results. In order to use these awards and recognitions received from Private Debt Investor, Private Equity Wire, Creditflux, GlobalCapital and DealCatalyst in these and other materials, Golub Capital has provided them with de minimis compensation for such use, and in certain instances, to be identified as an award recipient on Private Debt Investor’s website and materials used in association with its awards, Golub Capital has provided Private Debt Investor de minimis compensation.
3. Selections were made based on which firms won the most PDI awards in each category since 2013. Awards were published in PDI’s ‘The Decade’ issue, released in June 2023. In order to use the awards and recognitions received from PDI in Golub Capital materials as well as to be identified as an award recipient on PDI’s website and materials used in association with certain of its awards, Golub Capital has provided de minimis compensation to PDI.
4. Based on the number of votes cast on Private Debt Investor’s website. Peer group consisted of firms that applied or were nominated. All awards given on March 1st of the referenced year and based on the period of January 1st to September 30th of the prior year.
5. Based on the average ranking of each CLO relative to its peers by the following performance metrics, in order to recognize managers who have achieved the greatest performance for all classes of investors: change in junior overcollateralization; weighted average rating factor, average collateral value, weighted average spread, cash-on-cash return to equity; and equity volatility. Peer group consists of CLOs that invested in middle market collateral that are within their reinvestment period and listed on CLO-I (Creditflux’s database). Please note the 2021 award was given on September 9, 2021 and based on the period of January 1, 2020 through March 31, 2021.
6. Based on the number of votes casted by the GlobalCapital audience based on a shortlist determined by the GlobalCapital editorial team. All awards based on the performance of the prior calendar year. The 2022 award was given on July 1, 2022.
7. Based on the number of votes cast in an online poll of the entire Private Equity Wire readership, where participants are asked to make their choice among the shortlisted firms in each category. The pre-selection data for the GP fund manager shortlisted was provided by Bloomberg. The 2021 award was given on September 16, 2021.
8. Winners selected by the SCI editorial team based on submitted pitches, color from other market participants and SCI’s independent reporting. Awards given on October 4, 2022 and based on the period between October 1, 2021 and September 30, 2022.
9. Based on the number of votes submitted online by LSTA member organizations. Peer group consisted of firms that applied or were nominated. Award was given on May 16, 2023 and based on US CLO deals completed in calendar year 2022.
10. Based on a 2020 survey by The Korea Economic Daily Global Edition to determine Korean LPs’ preferred global asset managers across five asset classes. The 2020 award was given on December 18, 2020, and based on the period of January 1, 2020, to November 30, 2020.

Market-Leading Private Credit Platform
11. “Capital under management” is a gross measure of invested capital including leverage. As of January 1, 2024.

Deep Industry Expertise
Note: Amounts shown reflect number of transactions closed and dollar amounts of capital committed since 2013. Certain deals fall under multiple transaction categories and, therefore, are counted more than once (215 transactions amounting to $13.8bn in capital committed).
Source: Golub Capital. As of December 31, 2023.

Important Disclosure Information
Certain countries have been susceptible to epidemics or pandemics, most recently Covid-19. The outbreak of such epidemics or pandemics, together with any resulting restrictions on travel or quarantines imposed, has had and will likely continue to have a negative impact on the economy and business activity globally (including in the countries in which GCRED invests), and thereby is expected to adversely affect the performance of GCRED’s investments. Furthermore, the rapid development of epidemics or pandemics could preclude prediction as to their ultimate adverse impact on economic and market conditions, and, as a result, present material uncertainty and risk with respect to GCRED and the performance of its investments or operations.

Summary of Risks

• We have limited prior operating history and there is no assurance that we will achieve our investment objective.
• The majority of our portfolio investments will be recorded at fair value as determined in good faith by our board of trustees and, as a result, there could be uncertainty as to the value of our portfolio investments.
• Because subscriptions must be submitted at least five business days prior to the first calendar day of each month, you will not know the net offering price per share at which you will be subscribing at the time you subscribe.
• You should not expect to be able to sell your common shares of beneficial interest (“Common Shares”) regardless of how we perform.
• You should consider that you should not expect to have access to the money you invest for an extended period of time.
• We do not intend to list our Common Shares on any securities exchange, and we do not expect a secondary market in our Common Shares to develop prior to any listing.
• Because you should not expect to be able to sell your shares, you should not expect to be able to reduce your exposure in any market downturn.
• At the discretion of the board of trustees, we intend to implement a quarterly share repurchase program, but only a limited number of shares will be eligible for repurchase and repurchases will be subject to available liquidity, among other significant restrictions. As a result, we cannot guarantee that share repurchases will be available each quarter.
• An investment in our Common Shares is not suitable for you if you need access to the money you invest.
• You will bear substantial fees and expenses in connection with your investment.
• Because the incentive fee is based on the performance of our portfolio, the Investment Adviser may be incentivized to make investments on our behalf that are riskier or more speculative than would be the case in the absence of such compensation arrangement.
• We cannot guarantee that we will make distributions, and if we do, we may fund such distributions from sources other than cash flow from operations, including the sale of assets, borrowings, return of capital or offering proceeds, and although we generally expect to fund distributions from cash flow from operations, we have not established limits on the amounts we may pay from such sources. Any capital returned through distributions will be returned after the payment of fees and expenses.
• Distributions may also be funded in significant part, directly or indirectly, from temporary waivers or expense reimbursements borne by the Investment Adviser or its affiliates, that may be subject to reimbursement to the Investment Adviser or its affiliates. The repayment of any amounts owed to our affiliates will reduce future distributions to which you would otherwise be entitled.
• We use and expect to continue to use leverage, which will magnify the potential for loss on amounts invested in us.
• We qualify as an “emerging growth company” as defined in the Jumpstart Our Business Startups Act and we cannot be certain if the reduced disclosure requirements applicable to emerging growth companies will make our Common Shares less attractive to investors.
• We intend to invest in securities that are rated below investment grade by independent rating agencies or that would be rated below investment grade if they were rated. Below investment grade securities, which are often referred to as “junk,” have predominantly speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal. They may also be illiquid and difficult to value.
• Neither the U.S. Securities and Exchange Commission nor any state securities regulator has approved or disapproved of these securities or determined if the Prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
• This website must be read in conjunction with the Prospectus in order to fully understand all the implications and risks of an investment in GCRED. This website is neither an offer to sell nor a solicitation of an offer to buy securities. An offering is made only by the Prospectus. Prior to making an investment, investors should read the Prospectus, including the “Risk Factors” section therein, which contain the risks and uncertainties that we believe are material to our business’ operating results.