Golub hires MD for mid-market lending

The firm has added former Fifth Third Bancorp executive Brian Crabb, bolstering its Chicago-based mid-market lending team during a particularly active period for both Golub and the private equity debt market.

Golub Capital has hired Brian Crabb as a managing director in the firm’s middle market lending group.

Crabb joins Golub from Fifth Third Bancorp, where he was a managing director and led the group’s private equity lending team, Fifth Third Sponsor Leveraged Finance, created in 2009. He previously held positions at Capital Source, GE Capital and Heller Financial. Crabb will be based in Golub’s Chicago office.

“With Brian’s experience and long-standing relationships, we are confident he will deepen our private equity relationships in the Midwest,” head of middle market lending a Golub Andy Steuerman said in a statement.

Crabb’s hire comes during a particularly active period of lending for Golub. The firm has provided financing for three private equity transactions this month, participating in Roark Capital Group’s acquisition of massage business Massage Envy, Linden Capital’s recapitalisation of dental practice management company Northwest Management Services and ABRY Partners’ investment in outpatient information services business SourceMedical.

A number of general partners have indicated that the environment for financing has picked up recently. David Cardenas, partner at Olympus Partners told Private Equity International Monday the lending market has been particularly hot “just in the last few weeks”, adding that the availability of financing first picked up midway through the summer.

“If you have the right asset, it’s a nice time to approach the market with it,” said David Fiorentino, partner at JW Childs, which agreed to sell healthcare staffing firm CHG Healthcare Services to Ares Management and Leonard Green & Partners Tuesday.

Golub Capital specialises in providing financing for mid-market private equity transactions, lending up to $200 million per deal.  The firm has been offering unitranche debt since 2005 and has its own brand of the product called Golub One Loan Debt, or GOLD loans. Rather than having a separate interest rate for senior and mezzanine debt, the unitranche structure employs a single blended rate that averages out the cost of the two forms of capital.

Golub Capital was founded in 1994 and has more than $6 billion of capital under management.