Golub Capital Increases Risk Strategies Unitranche to $4.45 Billion
The latest $700 million incremental financing marks Golub Capital's 13th transaction with Risk Strategies since 2015
NEW YORK, Aug. 22, 2023 /PRNewswire/ -- Golub Capital acted as Administrative Agent, Lead Arranger and Joint Bookrunner on a $700 million delayed draw term loan for Risk Strategies, increasing the company's unitranche facility to $4.45 billion. Risk Strategies, a leading U.S. insurance broker, is a portfolio company of North American-focused middle market private equity firm, Kelso & Company.
Golub Capital helped the borrower achieve an optimal result by agreeing to hold a meaningful portion of the incremental loan, adding to its already significant position in the credit and leading a robust syndication process for the remainder. The Firm generated an oversubscribed book, allowing the transaction to be upsized from $500 million to $700 million while also tightening terms from initial talk.
"The unitranche market is open and private equity players value the scalability offered by unitranche facilities for their buy-and-build strategies," said Chip Cushman, Managing Director at Golub Capital. "We are proud to lead one of the largest unitranche facilities in the market today and to offer flexible financing solutions that support the long-term growth of high-quality borrowers."
Golub Capital started its relationship with Risk Strategies in 2015, when it was a $30 million EBITDA business. In 2019, the market-leading direct lender acted as Administrative Agent on a $1.64 billion unitranche facility to refinance Risk Strategies' existing debt facilities. Since then, the unitranche has more than doubled in size.
"Golub Capital has consistently been a reliable financing partner, providing the balance sheet capabilities and capital markets expertise that continues to support Risk Strategies' growth," said Michael Nichols, Partner and Managing Director at Kelso & Company.
About Golub Capital Sponsor Finance
Golub Capital is a market-leading, award-winning direct lender and experienced credit asset manager. We specialize in delivering reliable, creative and compelling financing solutions to companies backed by private equity sponsors. The firm's Direct Lending group provides buy-and-hold financing for sponsor-backed transactions with hold positions up to $700 million and arranges syndicated credit facilities up to $2 billion.
As of July 1, 2023, Golub Capital had over 825 employees and over $60 billion of capital under management, a gross measure of invested capital including leverage. The firm has lending offices in Chicago, New York, San Francisco and London. For more information, please visit golubcapital.com.
About Risk Strategies
Risk Strategies is the 9th largest privately held US brokerage firm offering comprehensive risk management advice, insurance and reinsurance placement for property & casualty, employee benefits, private client services, as well as consulting services and financial & wealth solutions. With more than 30 specialty practices, Risk Strategies serves commercial companies, nonprofits, public entities, and individuals, and has access to all major insurance markets. Risk Strategies has over 100 offices including Boston, New York City, Chicago, Toronto, Montreal, Grand Cayman, Miami, Atlanta, Dallas, Nashville, Washington DC, Los Angeles and San Francisco.
About Kelso & Company
Kelso & Company is one of the oldest and most established firms specializing in private equity investing. Since 1980, Kelso has invested approximately $19 billion of equity capital in 140 transactions. Kelso was founded by the inventor of the Employee Stock Ownership Plan (ESOP), and as a result, the principles of partnership and alignment of interest serve as the foundation of the firm's investment philosophy. Kelso benefits from a successful investment track record, deep sector expertise, a long-tenured investing team, and a reputation as a preferred partner to management teams and corporates. Kelso has significant experience investing in healthcare and financial services. For more information, please visit kelso.com.
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