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.

“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.

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

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.

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

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.