Golub Capital BDC, Inc. (GBDC): Business Model Canvas [Dec-2025 Updated]

You're trying to get a clear picture of how a major player like Golub Capital BDC, Inc. actually makes its money, especially with its $8.8 billion private credit portfolio as of late 2025. Honestly, mapping out their operating model using the Business Model Canvas cuts through the noise; we see they fund this through a stable public capital structure, primarily making money via interest income-hitting about $870.8 million in FY2025-while keeping investors happy with a portfolio that's nearly all floating-rate debt for that interest rate hedge. Dive below to see the nine blocks that explain exactly how this middle-market financing machine works with its sponsor-centric approach.

Golub Capital BDC, Inc. (GBDC) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that fuel Golub Capital BDC, Inc.'s (GBDC) deal origination and operational structure as of late 2025. These partnerships are defintely critical to maintaining that $8.8 billion investment portfolio size as of September 30, 2025.

GC Advisors LLC: External Investment Manager and Affiliate of Golub Capital

The relationship with GC Advisors LLC, the external investment adviser, dictates the fee structure you need to watch closely. The Investment Advisory Agreement sets the terms for how the manager is compensated for sourcing and managing the 417 portfolio companies.

• Base management fee is set at 1.0% of net assets.
• Incentive fee rate stands at 15.0%.
• The hurdle rate for the incentive fee is 8.0%.
• Capital gain incentive fees paid were reported in the amount of $1.2 million in a recent filing context.
• The broader Golub Capital platform manages over $85 billion in capital under management.

Private Equity Sponsors: Primary Source of Deal Flow for Middle-Market Loans

The strength of the relationship with private equity sponsors is what keeps the origination pipeline full. Golub Capital has consistently been recognized as a top bookrunner, which speaks directly to its deep ties with sponsors executing leveraged buyouts.

This sponsor-driven flow is the engine for GBDC's investment activity.

Commercial Banks: Providers of Credit Facilities and Syndicated Loan Arrangements

Financing partners, often commercial banks, provide the leverage that allows GBDC to scale its investments. The structure of GBDC's own liabilities reflects reliance on these external credit sources.

• 49% of GBDC's debt funding is unsecured debt as of September 30, 2025.
• The weighted average cost of debt for GBDC was 5.6% as of September 30, 2025.
• 99% of the portfolio is in floating rate loans, which impacts how GBDC structures its own borrowing costs with partners.

Co-investment Vehicles: Partnerships for Larger Deals

While the outline mentions specific co-investment examples, the latest available data focuses on the overall portfolio size and composition, which is supported by these types of arrangements for larger transactions.

The ability to deploy capital across 417 companies, with an average investment size of just 0.2% of the portfolio, suggests a need for partners to take down larger portions of deals when necessary.

Golub Capital BDC, Inc. (GBDC) - Canvas Business Model: Key Activities

You're looking at the core engine of Golub Capital BDC, Inc. (GBDC) operations, the things they absolutely must do well to keep the income flowing. These aren't just tasks; they are the daily grind that supports the dividend.

Direct Loan Origination: Sourcing and structuring loans to middle-market companies.

The sourcing and structuring part is all about putting new capital to work at attractive risk-adjusted returns. This activity directly feeds the income statement.

• Originated $556.8 million in new investments during the third quarter of fiscal year 2025.
• Captured 87.4% of this new origination volume in one-stop loans, which blend senior secured and junior debt.
• The portfolio's weighted average interest rate on new investments was 9.2% with a spread of 5.1% over the base rate.
• Golub Capital has been a Top 3 U.S. Middle Market Bookrunner each year from 2008-2024 for senior secured loans of up to $500MM, ranked by number of deals.

Credit Underwriting: Disciplined risk assessment and due diligence on borrowers.

This is where Golub Capital BDC, Inc. (GBDC) separates itself, focusing on downside protection before committing capital. It's about making sure the loans are high quality from the start.

The structure of the deployed capital shows a clear preference for security and rate protection:

The internal credit monitoring is also tight; nearly 90% of the investment portfolio remains in the highest internal rating categories.

Portfolio Management: Monitoring the 417 portfolio companies for credit quality.

Once a loan is on the books, the management activity shifts to active monitoring. You need to know the health of every borrower in the portfolio.

As of late 2025, Golub Capital BDC, Inc. (GBDC) was actively managing its investments across 417 portfolio companies.

• Investments on non-accrual status remained very low at 60 basis points of the total investment portfolio fair value as of Q3 2025.
• The average investment size across the portfolio was 0.2% of the total portfolio value, showing strong diversification compared to the BDC peer group average of 0.5%.
• The total investment portfolio fair value was reported around $9.0 billion in Q3 2025.

Capital Management: Issuing debt and equity to fund the $8.8 billion portfolio.

This is the financial engineering part-making sure Golub Capital BDC, Inc. (GBDC) has the cheapest and most reliable sources of funding to support its lending activities, specifically funding the stated $8.8 billion portfolio.

Liquidity and leverage management are key here. As of Q3 2025, the net debt to equity ratio ended at 1.26x. The GAAP debt-to-equity ratio, net, was 1.19x in Q1 2025.

Funding sources show a reliance on both secured and unsecured debt:

• 42% of the company's debt funding comes from unsecured notes.
• Total available liquidity was reported at $947 million as of June 30, 2025.
• Unrestricted cash and cash equivalents stood at $99.8 million as of June 30, 2025.
• Availability on the JPM Credit Facility was $547.3 million.

On the equity side, management signaled confidence by repurchasing shares; Golub Capital BDC, Inc. (GBDC) bought back approximately 2.4 million shares for $34.3 million during Q3 2025. Finance: draft 13-week cash view by Friday.

Golub Capital BDC, Inc. (GBDC) - Canvas Business Model: Key Resources

You're looking at the core assets that power Golub Capital BDC, Inc.'s (GBDC) ability to generate income and sustain operations. These aren't just line items; they are the engines of the business.

Golub Capital Platform: The affiliation with the broader Golub Capital platform is a massive resource, providing access to significant scale and expertise. As of October 1, 2025, Golub Capital had over $85 billion of capital under management, a gross measure that includes leverage. This scale supports the BDC's investment capacity and sourcing power.

Proprietary Deal Flow: The firm's ability to consistently source attractive deals is critical. This stems from long-standing relationships with private equity sponsors, which has resulted in incumbencies with more than 650 borrowers. Furthermore, Golub Capital was the lead lender on approximately 90% of its middle market transactions since 2013.

Investment Portfolio: GBDC maintains a substantial and defensively positioned portfolio. As of September 30, 2025, the investment portfolio was valued at $8.8 Billion. This portfolio is structured to prioritize downside protection and predictable cash flows. You can see the composition details here:

The portfolio's heavy tilt toward first lien and floating rate debt is a deliberate resource allocation choice, helping to manage both credit and interest rate risk. For instance, the BDC originated $556.8 million in new investment commitments during Q3 2025.

Permanent Capital Structure: Being a publicly traded Business Development Company (BDC) provides access to stable, permanent capital sources, which is a key advantage over non-traded peers. This is supported by a flexible funding structure:

• Total available liquidity was $947 million as of June 30, 2025.
• Weighted average cost of debt was reported at 5.7%.
• 42% of the company's debt funding comes from unsecured notes, offering structural flexibility.
• The company successfully priced a public offering of $250 million 7.050% Notes Due 2028 in September 2025.

This structure helps GBDC maintain a competitive cost of capital. Finance: draft 13-week cash view by Friday.

Golub Capital BDC, Inc. (GBDC) - Canvas Business Model: Value Propositions

You're looking at how Golub Capital BDC, Inc. (GBDC) delivers distinct value to its investors, focusing on security and high income generation from middle-market lending. The core of this value is built on a conservative investment structure combined with specialized financing products.

One-Stop Financing: Golub Capital BDC, Inc. focuses heavily on providing simplified financing solutions, primarily through one-stop loans. These hybrid structures capture higher yields while maintaining strong downside protection, which is key for middle-market buyouts backed by private equity sponsors. As of the third quarter of fiscal year 2025, one-stop loans represented approximately 87.4% of new investment commitments originated during that quarter, and they continue to represent around 87% of the total portfolio at fair value.

Risk Mitigation for Investors: The portfolio positioning is deliberately conservative to protect capital. Golub Capital BDC, Inc. maintains a high concentration in the most secure part of the capital structure. As of September 30, 2025, 92% of the investment portfolio consisted of First Lien Senior Secured Debt. This is notably higher than the BDC peer average of 80% for first lien loans. Furthermore, the portfolio is granular, with an average investment size of just 0.2% of the total portfolio, and the largest single borrower represented only 1.5% of the debt investment portfolio as of June 30, 2025.

The following table summarizes the key statistical data underpinning these risk and structure propositions as of late 2025:

High Current Income: Golub Capital BDC, Inc. offers an attractive income stream, fully covered by its earnings. For the quarter ended June 30, 2025, the company declared a quarterly base distribution of $0.39 per share, which was in line with the adjusted Net Investment Income (NII) per share of $0.39 for that period. Based on the Net Asset Value (NAV) per share as of September 30, 2025 ($14.97), the annualized regular quarterly distribution implied a yield of 10.4%. More recently, the forward dividend yield as of December 1, 2025, was reported at 11.07%, with a TTM dividend payout of $1.56 per share.

Interest Rate Hedge: The portfolio is structured to benefit from or remain stable against interest rate movements. This is achieved because the assets are predominantly floating-rate, and the liabilities are managed to match that structure. As of September 30, 2025, 99% of the investment portfolio was comprised of Floating Rate Loans. On the liability side, approximately 80% of GBDC's total debt funding was floating rate or swapped to a floating rate as of the Q3 2025 earnings call.

The following list details the income and rate structure metrics:

• Quarterly Distribution (Q3 2025): $0.39 per share
• Adjusted NII Per Share (Q3 2025): $0.39
• Annualized Yield on NAV (as of Sep 30, 2025): 10.4%
• Forward Dividend Yield (as of Dec 1, 2025): 11.07%
• Portfolio Floating Rate Loans: 99%
• Weighted Average Rate on New Investments (Q3 2025): 9.2%

Finance: review the impact of the 15% incentive fee reduction on the next quarter's projected NII by Monday.

Golub Capital BDC, Inc. (GBDC) - Canvas Business Model: Customer Relationships

You're managing capital for investors who look for reliable income from the middle market, so Golub Capital BDC, Inc. focuses its customer relationships on two main groups: the private equity sponsors who bring the deals and the investors who provide the capital.

Sponsor-Centric: High-touch, reliable execution for private equity clients.

Golub Capital BDC, Inc. is built to be a dependable financing partner for private equity sponsors. The manager, Golub Capital LLC, has over 30+ Years of experience and manages over $85+ Billion of capital under management, which is a gross measure including leverage. This scale helps them deliver on the promise of reliable execution for their sponsor clients.

The relationship is grounded in highly selective underwriting, which shows their commitment to quality over volume. For instance, in the third quarter of fiscal year 2025, Golub Capital BDC, Inc. closed on just 3.1% of the deals reviewed. This selectivity results in a highly diversified portfolio where the largest borrower represents only 1.5% of the debt investment portfolio, and the top 10 borrowers account for below 12%.

The portfolio structure itself reflects a relationship built on downside protection for the underlying companies they finance:

• First Lien Senior Secured Debt makes up 92% of the portfolio as of September 30, 2025.
• The average investment size is only 0.2% of the total portfolio, which is nearly twice the diversification compared to the BDC peer average of 0.5%.
• The portfolio consisted of 417 investments as of September 30, 2025.

Investor Relations: Regular SEC filings and quarterly earnings calls for transparency.

For the capital providers, Golub Capital BDC, Inc. maintains a regular cadence of communication. You can expect transparency through required regulatory filings and scheduled investor events. For example, the company announced its fiscal year 2025 fourth quarter results for release on November 18, 2025, with an earnings conference call scheduled for November 19, 2025.

The direct return to investors is a key relationship metric. For the third quarter of fiscal year 2025, the declared regular quarterly distribution was $0.39 per share. Based on the Net Asset Value (NAV) per share of $15.00 as of June 30, 2025, this represented an annualized dividend yield of 10.4%. The NAV per share at the end of Q3 2025 was $15.00.

Here's a quick look at the recent income and distribution figures:

Dedicated Portfolio Team: Active management and monitoring of borrower performance.

The team actively manages the assets to ensure the income stream remains robust, which is critical for the BDC structure. The total investment portfolio at fair value stood at $8.96 billion as of June 30, 2025. The team's focus is on senior secured floating rate loans, with 99% of the portfolio being floating rate as of September 30, 2025.

The active management involves both originating new assets and managing existing ones. In Q3 2025, the company originated $556.8 million in new investments. The portfolio's weighted average interest rate on these new investments was 9.2%. The team's approach is heavily weighted toward the most secure part of the capital structure, with one-stop loans representing around 87% of the portfolio at fair value.

The portfolio composition shows the team's focus on credit quality and structure:

• Total Investment Portfolio (Fair Value): $8.96 billion (as of 06/30/2025).
• One-Stop Loans: 87.4% of the portfolio.
• Weighted Average Interest Rate on Portfolio: 9.2%.
• Median EBITDA of Portfolio Companies: $72.4 Million.

If onboarding takes 14+ days, churn risk rises, but for GBDC, the focus is on the quality of the deal flow they review, closing on only 3.1% in Q3 2025. Finance: draft the Q4 2025 portfolio composition breakdown by Friday.

Golub Capital BDC, Inc. (GBDC) - Canvas Business Model: Channels

Direct Origination: The primary channel for sourcing middle-market loans.

Golub Capital BDC, Inc. focuses on directly originating senior secured loans to U.S. middle market private companies, often backed by private equity sponsors. This channel is supported by the firm's established history, having been a Top 3 U.S. Middle Market Bookrunner each year from 2008-2024 for senior secured loans up to $500MM, ranked by number of deals, based on London Stock Exchange Group (LSEG) Data & Analytics and internal data. Golub Capital BDC, Inc. leverages its scale to lead deals, acting as sole or lead lender in 90% of its transactions in the quarter ended September 30, 2025.

The investment portfolio at fair value was $8,961,549 thousand as of June 30, 2025, growing to nearly $9.0 billion in fair value as of that date. Origination activity for the quarter ended June 30, 2025, saw $557 million in new investment commitments, with $411 million funded, while closing on just 3.1% of deals reviewed. For the subsequent quarter ended September 30, 2025, funded new investment commitments were $60 million, net of $371 million in repayments and exits, with the company closing on just 3.8% of deals reviewed.

The weighted average LTV for deals closed in the quarter ended June 30, 2025, was approximately 34%, which tightened to approximately 42% for the quarter ended September 30, 2025. The weighted average rate on new investments for the quarter ended September 30, 2025, was 8.9%.

NASDAQ Stock Exchange: Public trading of GBDC shares for investor access.

Golub Capital BDC, Inc. trades publicly under the ticker symbol GBDC on the NASDAQ Stock Exchange. The Net Asset Value (NAV) per share was $15.00 as of June 30, 2025, decreasing slightly to $14.97 as of September 30, 2025. The Board declared a quarterly distribution of $0.39 per share for the third fiscal quarter of 2025. This distribution represented an annualized yield of approximately 10.6% based on the stock price of $14.72 on August 4, 2025.

Capital management through the exchange includes share repurchases. Golub Capital BDC, Inc. repurchased 2.9 million shares during the fiscal year 2025, with an additional 2.5 million shares repurchased since the end of the quarter ended September 30, 2025. During the quarter ended September 30, 2025, 368,000 shares were repurchased.

• Ticker Symbol: GBDC
• NAV per Share (June 30, 2025): $15.00
• NAV per Share (September 30, 2025): $14.97
• Quarterly Distribution Declared (Q3 2025): $0.39 per share
• Stock Closing Price (August 4, 2025): $14.72

Investor Relations Website: Distribution of financial results and presentations.

The primary digital channel for investor communication is the Investor Relations section of the www.golubcapitalbdc.com website. This is where materials for key events are posted, such as the Earnings Press Release, Earnings Call Notification, and the Earnings Presentation. For instance, the Earnings Presentation for the quarter ended June 30, 2025, was made available, and the Q4 2025 Earnings Call Presentation was published on November 19, 2025. Listeners are directed to the Events and Presentations link within the Investor Resources tab to access these documents.

The Investor Relations channel provides key financial updates:

• Adjusted Net Investment Income per Share (Q3 2025): $0.39
• Adjusted Net Investment Income per Share (Q4 2025): $0.39
• Adjusted Net Income per Share (Q3 2025): $0.34
• Adjusted Net Income per Share (Q4 2025): $0.38
• Nonaccruals as a percentage of portfolio at fair value (Q3 2025): 0.3%

Golub Capital BDC, Inc. (GBDC) - Canvas Business Model: Customer Segments

You're analyzing the core clientele for Golub Capital BDC, Inc. (GBDC), and it really boils down to three main groups that provide the capital and receive the debt financing. Honestly, the focus is sharp, which is what you'd expect from a seasoned manager like Golub Capital.

U.S. Middle-Market Companies: Borrowers

The primary customers are U.S. middle-market companies, almost exclusively backed by private equity sponsors. Golub Capital BDC, Inc. focuses on providing first lien senior secured loans to these businesses. As of the first quarter of fiscal year 2025, the median portfolio company EBITDA (earnings before interest, taxes, depreciation, and amortization) was reported at $65 million, with a core lending focus on companies having between $10 million and $100 million in EBITDA. The portfolio is heavily weighted toward these borrowers, with 92% of the investment portfolio consisting of first lien senior secured floating rate loans as of September 30, 2025. The total investment portfolio fair value stood at approximately $8.77 billion at the end of the fourth fiscal quarter of 2025, spread across 417 portfolio companies.

Private Equity Firms: Sponsors

Private Equity firms are critical partners, as they originate the deal flow. Golub Capital BDC, Inc. actively cultivates these sponsor relationships. For the fourth fiscal quarter of 2025, the company noted that it leaned on its existing sponsor relationships and portfolio company incumbencies for approximately half of its origination volume. This reliance on established partners helps modulate credit risk through deep due diligence and ongoing monitoring. Furthermore, Golub Capital BDC, Inc. acted as the sole or lead lender in 90% of its transactions during that quarter, indicating a strong position of influence with the sponsors.

• Sponsor relationships provided approximately 50% of origination volume in Q4 2025.
• Acted as sole or lead lender in 90% of transactions in Q4 2025.
• Focus on private equity-backed companies with resilient industry profiles.

Income-Focused Public Investors: Shareholders

The third segment is the public investor base, which seeks consistent, high current income. Golub Capital BDC, Inc. has a history of maintaining a steady distribution policy to attract and retain these shareholders. For the fiscal year 2025, the company paid cumulative distributions of $1.65 per share, which represented 10.9% of the end-of-year net asset value per share. The quarterly distribution for Q4 2025 was declared at $0.39 per share, which implied an annualized yield around 11.1% based on recent trading prices. Institutional investors, like JPMorgan Chase & Co., held approximately 42.38% of the company as of the second quarter of 2025, showing significant professional interest alongside retail participation.

The Net Asset Value (NAV) per share as of September 30, 2025, was $14.97. That figure is actually $0.34 above the NAV per share at its IPO in 2010, which is a key selling point for long-term income investors.

• FY 2025 Cumulative Distributions: $1.65 per share.
• Q4 2025 Declared Quarterly Distribution: $0.39 per share.
• NAV per Share (September 30, 2025): $14.97.
• Institutional Ownership (Q2 2025): Approximately 42.38%.

Golub Capital BDC, Inc. (GBDC) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive Golub Capital BDC, Inc.'s operating profile, which is heavily influenced by its fee structure designed for shareholder alignment. The costs here are primarily tied to managing the investment portfolio and servicing the debt used to finance those assets.

Management Fees are structured as a base fee of 1.0% of gross assets, specifically excluding cash. For the period ending September 30, 2025, Golub Capital BDC, Inc.'s total investments at fair value stood at approximately $8.8 billion. This base fee is a fixed cost component, calculated annually on that asset base, which translates to an estimated quarterly base management fee expense of around $22.0 million based on that asset level, assuming the 1.0% is applied consistently.

The Incentive Fees are tied directly to performance above a set benchmark. The structure calls for 15.0% of Net Investment Income (NII) earned above an 8.0% hurdle rate. This structure is a key part of the shareholder alignment story, as the manager only earns the incentive fee once shareholders have received a preferred return. For the fourth fiscal quarter of 2025, Adjusted Net Investment Income Per Share was $0.39, and the board declared a regular quarterly distribution of $0.39 per share, meaning the incentive fee hurdle was met but not significantly exceeded in that specific quarter based on the distribution level.

Interest Expense represents the cost of Golub Capital BDC, Inc.'s leverage. As of September 30, 2025, the weighted average cost of debt was reported at 5.6% annualized. This favorable cost is supported by the fact that approximately 81% of the funding structure is floating rate or swapped to floating, allowing the cost to adjust with base rates. This contrasts with the weighted average rate on new investments for the quarter, which was 8.9%.

Operating Expenses cover the general and administrative costs of running the BDC itself, separate from the investment advisory fees. For the fiscal year ended September 30, 2025, the reported Total Operating Expenses were $473.97 million. This figure encompasses all the day-to-day overhead required to operate the business development company.

Here's a quick look at the key cost structure metrics as of late 2025:

The structure shows a clear link between the manager's compensation and portfolio performance through the incentive fee, while the base fee is directly proportional to the size of the managed portfolio. The low cost of debt, at 5.6%, helps keep the overall cost of capital competitive, which is critical when investment spreads are compressing.

Golub Capital BDC, Inc. (GBDC) - Canvas Business Model: Revenue Streams

You're looking at the core ways Golub Capital BDC, Inc. (GBDC) brings in money to support its operations and distributions. For a BDC, this is almost entirely about the interest it earns on the loans it makes to middle-market companies.

Interest Income: Primary revenue source from debt investments. This is the engine room for Golub Capital BDC, Inc. (GBDC). For the fiscal year ending September 30, 2025, the company reported annual revenue of \$870.78 million. Given that debt investments are the focus, this figure closely represents the scale of the interest income stream for FY2025.

The revenue streams are detailed below, showing the primary drivers:

• Interest Income: Primary revenue source from debt investments, totaling \$870.78 million in FY2025 annual revenue.
• Fee Income: Origination, structuring, and commitment fees from borrowers.
• Capital Gains: Realized gains from the sale of equity or warrant investments.
• Dividends: Quarterly distribution of \$0.39 per share declared in Q4 2025.

To give you a clearer picture of the income components, especially around the end of the fiscal year, here's a look at the Q4 2025 figures. Remember, Adjusted Net Investment Income (Adjusted NII) is the key metric here, as it generally captures recurring interest and fee income:

The stream from Fee Income is embedded within the Adjusted Net Investment Income figure. For instance, in Q4 2025, Adjusted NII was \$104.3 million. This stream is bolstered by fees charged for setting up loans and keeping commitment lines open, which helped offset spread compression in that quarter.

Regarding Capital Gains, which are realized gains from selling investments, the latest data shows a net loss on a realized and unrealized basis for the fourth quarter. The Adjusted Realized and Unrealized Gain/(Loss) per share for Q4 2025 was (\$0.03), equating to a total loss of approximately \$8.2 million for the quarter. This shows that while the core business is generating steady income, investment performance can introduce volatility to the total revenue picture.

Finally, the commitment to shareholders is clear through the Dividends stream. Golub Capital BDC, Inc. declared a quarterly distribution of \$0.39 per share in Q4 2025, payable in December 2025. This level was maintained from the prior quarter.