In an exclusive LFI interview, Alan George, head of structured products at Golub Capital, shared that despite volatility, the firm is seeing signs of stabilization in the loan and CLO markets. Golub Capital issued $6.8bn in PC CLOs in Q1, with a focus on extending liabilities, repricing and restructuring. George notes improving liquidity in the PC CLO secondary market, particularly for established players like Golub with $40bn in assets.
The firm retains equity in its CLOs through private funds or BDCs.
Golub’s strategy includes adding equity to deals when needed to mitigate risk, a tactic recognized by investors across market cycles. Amid 2025’s volatility, George notes heightened investor interest in mezzanine and CLO equity, particularly in PC CLOs.
LFI: What’s top of mind for you regarding PC CLOs, and could you contextualize this with BSL CLOs if possible?
George: Today, stability is key. When the market is as volatile as it’s been lately, it’s hard to model a consistent return profile for a CLO as there are too many variables changing too frequently. We’re now starting to see…
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