Border to Coast Pensions Partnership Ltd reduces stake in Golub Capital BDC by 14.9% in Q3
October 26, 2024
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Golub ($NASDAQ:GBDC) Capital BDC, Inc. is a publicly traded business development company that provides financing to middle-market companies. It focuses on providing debt and equity capital to businesses in various industries, including healthcare, technology, and consumer products. As of 2020, Golub Capital BDC has a market capitalization of over $1 billion and operates as a subsidiary of Golub Capital LLC. In the third quarter of 2020, Golub Capital BDC saw a decrease in ownership by Border to Coast Pensions Partnership Ltd. This pension fund, which manages assets for several local government pension schemes in the UK, had previously held a 14.9% stake in the company.
It is not uncommon for institutional investors like pension funds to regularly adjust their holdings to align with their investment objectives and risk tolerance. With a major stakeholder reducing their ownership, it could potentially impact the stock’s performance and overall investor sentiment. Investors should keep an eye on any future developments regarding Border to Coast’s involvement with Golub Capital BDC. As the company continues to navigate these uncertain times, investors may want to closely monitor its performance and any potential changes in ownership by major stakeholders.
Analysis
As an analyst, I have examined the fundamentals of GOLUB CAPITAL BDC to determine the company’s financial health and potential for growth. Upon analysis, I have found that GOLUB CAPITAL BDC is classified as a ‘cheetah’ company according to the Star Chart, indicating that it has achieved high revenue or earnings growth but may be considered less stable due to lower profitability. One of the key strengths of GOLUB CAPITAL BDC is its strong dividend track record. This is appealing to investors who are looking for consistent and reliable returns on their investments. Additionally, the company has shown strong growth potential in terms of revenue and earnings, which can be attractive to investors seeking capital appreciation. However, GOLUB CAPITAL BDC does have some weaknesses that investors should be aware of. Its asset quality is relatively weak compared to its peers, which may result in lower returns for investors. Additionally, its profitability is not as strong as other companies in the same industry, which can be a concern for investors looking for stable and consistent returns. One area of concern for GOLUB CAPITAL BDC is its low health score of 2/10. This indicates that the company may struggle to sustain its operations in times of crisis, such as economic downturns or unexpected events. This may be due to its lower cash flows and higher levels of debt, which can make it more vulnerable to financial instability. In conclusion, GOLUB CAPITAL BDC may be attractive to certain types of investors, such as those looking for strong dividend yields and potential for growth. However, its weaknesses in asset quality and profitability, as well as its low health score, should be carefully considered by investors before making any investment decisions. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for GBDC. More…
| Total Revenues | Net Income | Net Margin |
| 333.8 | 308.83 | 92.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for GBDC. More…
| Operations | Investing | Financing |
| 306.08 | 13.42 | -298.86 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for GBDC. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.7k | 3.14k | 15.03 |
Key Ratios Snapshot
Some of the financial key ratios for GBDC are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 42.9% | – | – |
| FCF Margin | ROE | ROA |
| 91.7% | 7.6% | 3.4% |
Peers
The Company’s investment activities are focused on leveraged buyouts, middle market lending, and mezzanine investments. Golub Capital BDC Inc is managed by Golub Capital LLC, an affiliate of Golub Capital Partners, LLC. OFS Capital Corp is a US-based closed-end investment company. The Company’s investment objective is to provide current income and capital gains. OFS Capital Corp invests primarily in middle-market companies in the form of mezzanine loans, first-lien, and second-lien loans, and equity securities. PhenixFIN Corp is a private equity firm specializing in growth capital, middle market, and mezzanine investments. PhenixFIN Corp was founded in 2006 and is based in Boston, Massachusetts. Princeton Capital Corp is a US-based investment company. The Company’s investment objective is to provide current income and capital gains. Princeton Capital Corp invests primarily in middle-market companies in the form of mezzanine loans, first-lien, and second-lien loans, and equity securities.
– OFS Capital Corp ($NASDAQ:OFS)
OFS Capital Corp is a publicly traded business development company that provides financing solutions to middle market companies. The company has a market cap of 114.02M as of 2022. OFS Capital Corp’s investment objective is to generate both current income and capital appreciation through debt and equity investments. The company invests primarily in senior secured and mezzanine loans of middle market companies.
– PhenixFIN Corp ($NASDAQ:PFX)
PhenixFIN Corp is a publicly traded company with a market capitalization of $79.3 million as of 2022. The company is engaged in the business of providing financial services and products to consumers and businesses. The company offers a wide range of services, including credit cards, loans, and investment products. PhenixFIN Corp is headquartered in San Francisco, California.
– Princeton Capital Corp ($OTCPK:PIAC)
Princeton Capital Corporation is a publicly traded company with a market capitalization of $33.13 million as of 2022. The company is engaged in the business of lending and investing in real estate and other businesses. Princeton Capital Corporation is headquartered in New York, New York.
Summary
Border to Coast Pensions Partnership Ltd, a UK-based investment firm, reduced its stake in Golub Capital BDC, Inc. by 14.9% during the third quarter. This suggests that the firm may have a less optimistic outlook on the company’s financial performance. Additionally, Golub Capital BDC, Inc. is likely facing challenges or underperforming in the current market conditions. Investors should take note of this decrease in stake and closely monitor the company’s financial reports and market trends to make informed decisions about their investments in Golub Capital BDC, Inc.
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