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In 2013 Q1, BDCs might find themselves paying for a robust 2012 Q4 (when companies rushed to...

Friday, February 8, 12:54 PM ET
In 2013 Q1, BDCs might find themselves paying for a robust 2012 Q4 (when companies rushed to close deals ahead of tax hikes). "Our deal pipeline in Q1 is much slower than it was last quarter," said Golub Capital (GBDC) CEO David Golub on the earnings call (transcript). "It's not anemic ... but there's no question that we and others in the market are feeling the full-forward effect of last quarter."

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This news story has 6 comments:

Micro_Cap_Maven Comments (23)

Each of the BDCs is very different, have unique portfolios and varying dynamics and outcomes. GBDC sounds like a retailer blaming slow performance on the weather ;)

8 Feb, 01:34 PM Reply Like

Nicholas Marshi Comments (213)

Wouldn't be too worried about the first quarter results. Golub, as well as Fifth Street and PennantPark, booked numerous deals towards quarter end that will contribute more to 2013 than 2012. Also lower new investment pace this year means (most likely) lower repayments as well. The BDCs might miss the one time fees which boosted results in the IVQ of 2012, but those should resume later in year. Also, a robust deal environment gives hope that many BDCs will be able to realize long held equity investments in 2013, like PennantPark just did with Realogy (held since 2007). We project that the BDC industry should see a 2-4% growth in distributions in 2013 across the 30 plus companies we track.

8 Feb, 01:50 PM Reply Like

eccomi Comments (4)

I am a mere academic. i have no idea what BDC's are. I have no idea what SEEKING ALPHA means when it encloses BDC's within GBDC's. Searching GOOGLE provided the best laughs I have had in a week..

I have held ARCC stock for a number of years, without running into these acronyms.

Help, anyone?

9 Feb, 02:46 AM Reply Like