Golub Capital CEO Defends Private Credit as the Smarter 60/40 Hedge.

Lawrence Golub, billionaire CEO of Golub Capital, pushed back against “private credit bubble” fears at the Forbes/SHOOK Summit in Las Vegas, arguing that direct lending strengthens 60/40 portfolios and has outperformed roughly half of private equity funds over decades.

With around $3 trillion now committed to private credit, Golub noted that most competition is concentrated in large syndicated loans, leaving the middle market less crowded and rich with opportunity. As PineBridge Investments highlights, private credit borrowers are typically middle-market companies generating $100 million–$3 billion in annual revenue, a segment banks often avoid.

Golub urged investors to focus on net returns after credit losses, not just spreads, emphasising that manager selection and credit discipline are key drivers of performance. With 90% repeat sponsor business, Golub said his firm (like other leading direct lenders) operates as a “finance company,” not a passive investor. Despite slower PE distributions, he concluded that private markets continue to deliver premium, persistent returns that strengthen the broader U.S. economy.

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