Golub Capital is committing at least $1bn of its own capital to a new platform designed to invest in private equity continuation vehicles, marking a significant strategic expansion into the fast-growing GP-led secondaries market.
The firm will also raise external capital for a dedicated fund targeting continuation structures in private equity-owned middle-market companies across the US and Europe, according to a statement released Thursday. The strategy will primarily focus on single-asset continuation funds, where sponsors roll high-performing portfolio companies into new vehicles to extend ownership and provide liquidity to existing investors.
The effort will be led by Greg Cashman, Golub’s co-head of direct lending and a nearly 30-year veteran of the firm.
Golub currently manages around $80bn in assets and operates a $1.7bn co-investment programme that partners alongside private equity firms on direct deals – experience the firm plans to leverage as it moves further into GP-led opportunities.
The timing reflects a broader market shift. With deal exits still constrained by higher interest rates and muted M&A activity, private equity managers have increasingly turned to continuation vehicles to retain quality assets and unlock liquidity. According to Jefferies Financial Group, GP-led secondaries accounted for nearly 20% of all PE exits in H1 2025, up from 13% last year.
Golub joins a growing list of major alternative asset managers – including Warburg Pincus, Leonard Green & Partners, New Mountain Capital, and HIG Capital – launching strategies to provide capital into this segment. Institutional investors, such as the Teacher Retirement System of Texas meanwhile, have also begun allocating to the space, attracted by the combination of yield, downside protection, and sponsor alignment.
