Midsized private companies post highest earnings growth since Covid — Golub

Earnings for middle market private companies tracked in the Golub Capital Altman Index grew 16% during the first two months of Q4 2023, marking the highest year-over-year increase since the second quarter of 2021.

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“Quarterly EBITDA growth of 16.3% year-over-year was the highest in the eight-year history of the Index, apart from the anomalous rebound from 2020 Covid shutdowns in Q2 2021,” said credit expert Edward Altman.

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Meanwhile, revenue grew 7.4% on Golub's measure.

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Out of the sectors tracked, technology continued to outperform, with earnings growth of 37% and revenue growth of 11.5%. The remaining three sectors tracked—Consumer, Healthcare, and Industrial—also showed double-digit growth.

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“We expected to see strong growth in Q4 2023 and the data exceeded even our expectations,” said Golub Capital CEO Lawrence Golub.

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The Golub Capital Altman Index (GCAI) measures the median revenue and earnings of approximately 110-150 private US companies in the loan portfolio of Golub Capital.

Reference: https://pitchbook.com/news/articles/midsized-private-companies-post-highest-earnings-growth-since-covid-golub

https://golubcapital.com/middle-market-report/current-report/