man Alternatives Goldman Sachs BDC, Inc. Investor Presentation QUARTER ENDED SEPTEMBER 30, 2024 WWW.GOLDMANSACHSBDC.COM Disclaimer and Forward-Looking Statement The information contained in this presentation should be viewed in conjunction with the earnings conference call of Goldman Sachs BDC, Inc. ("GSBD" or the "Company") (NYSE: GSBD) held on November 8, 2024, and the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2024. The information contained herein may not be used, reprod ...

Financial Data and Key Metrics Changes - The net investment income per share for Q3 2024 was $0.58, and the net asset value per share was $13.54, a decrease of approximately 1% from the previous quarter due to net realized and unrealized losses [8] - GAAP and adjusted after-tax net investment income for Q3 2024 were $68.2 million and $67.2 million respectively, compared to $67 million and $65.2 million in the prior quarter [24] - Total investment income for Q3 2024 was $110.4 million, an increase from $108.6 million in Q2 2024, primarily due to incremental deployment [25] Business Line Data and Key Metrics Changes - Gross originations more than doubled year-over-year, totaling approximately $376.6 million in 34 new investment commitments [11][13] - Sales and repayments activity increased by 45% from the prior quarter, totaling $329 million, with 72% of repayments coming from 2021 and older vintages [12] Market Data and Key Metrics Changes - Sponsor M&A volumes grew by 17.5% year-over-year in Q3 2024, driven by $1.4 trillion of private equity dry powder [9] - The weighted average yield of the investment portfolio at amortized cost was 10.9%, down from 11% in the prior quarter [18] Company Strategy and Development Direction - The company is focused on recycling older vintage investments into new originations, with a proactive portfolio management strategy [12][15] - The management anticipates a rebound in M&A activity in 2025, supported by the Goldman Sachs ecosystem [10][15] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about M&A activity post-election, indicating a positive sentiment in the market [31] - The company expects to be busy assessing new opportunities in Q1 2025, with actual deployment likely occurring in Q2 or later [36] Other Important Information - The company declared a fourth-quarter dividend of $0.45 per share, marking the 39th consecutive quarter of this dividend [8] - Investments on non-accrual status decreased to 2.2% of the total investment portfolio at fair value from 3.4% in the previous quarter [21] Q&A Session Summary Question: Recycling opportunities in the portfolio - Management noted a strong quarter of sales and repayments, with full exits in at least four portfolio companies from 2021 or earlier, indicating a positive pace of repayments and recycling [28] Question: Re-pricing activity in the portfolio - Management observed a stabilization in spreads during the quarter, with expectations for a slowdown in re-pricing activity [30] Question: Outlook for M&A activity post-election - Management reported an energetic and optimistic sentiment regarding M&A activity, particularly from the sponsor community, expected to increase in 2025 [31] Question: Credit quality and risk rating changes - A slight increase in risk-rated 3 and 4 categories was attributed to one underperforming name in the business services sector [33][34]

分组1 - Goldman Sachs BDC reported quarterly earnings of $0.58 per share, exceeding the Zacks Consensus Estimate of $0.57 per share, but down from $0.64 per share a year ago, representing an earnings surprise of 1.75% [1] - The company posted revenues of $110.41 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 1.79%, and down from $120.06 million year-over-year [2] - Goldman Sachs BDC shares have declined approximately 10.2% year-to-date, contrasting with the S&P 500's gain of 24.3% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.51 on revenues of $114.25 million, and for the current fiscal year, it is $2.19 on revenues of $446.82 million [7] - The Zacks Industry Rank for Financial - SBIC & Commercial Industry is in the bottom 27% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Performance - Net investment income per share for Q3 2024 was $0.58, with adjusted net investment income per share at $0.57, resulting in an annualized net investment income yield of 16.8%[2] - Total investment income for Q3 2024 was $110.4 million, an increase from $108.6 million in Q2 2024, attributed to higher levels of new originations[4] - The company reported net investment income after taxes of $68,182 for the three months ended September 30, 2024, compared to $72,949 for the same period in 2023, reflecting a decrease of approximately 10.5%[16] - Total investment income for the three months ended September 30, 2024, was $110,413, a decrease from $120,056 in the same period of 2023[16] - Basic and diluted net investment income per share was $0.58, down from $0.67 in the previous period[17] - Basic and diluted earnings (loss) per share was $0.32, compared to $0.47 in the previous period[17] Investment and Debt - Total investments at fair value and commitments as of September 30, 2024, were $4,017.5 million, with 97.6% in senior secured debt[2] - The weighted average yield on debt and income-producing investments at fair value was 13.9% as of September 30, 2024[8] - As of September 30, 2024, 66.7% of the company's $1,887.8 million total debt outstanding was unsecured[2] - Total debt outstanding as of September 30, 2024, was $1,878,107, up from $1,826,794 as of December 31, 2023[14] - The total liabilities increased to $1,959,406 as of September 30, 2024, compared to $1,920,994 as of December 31, 2023[14] Asset Valuation - The net asset value (NAV) per share decreased by 1.0% to $13.54 from $13.67 as of June 30, 2024[2] - The net asset value per share decreased to $13.54 as of September 30, 2024, down from $14.62 at the end of 2023[14] - Investments on non-accrual status represented 2.2% of the total investment portfolio at fair value as of September 30, 2024[8] Dividends - The company declared a regular fourth quarter 2024 dividend of $0.45 per share, payable to shareholders of record as of December 31, 2024[2] - The company declared a dividend of $0.45 per share, payable on January 27, 2025, to stockholders of record as of December 31, 2024[12] Operational Metrics - Gross originations during the quarter were approximately $376.6 million, with net funded investment activity of $(69.4) million[2] - The company's ending net debt-to-equity ratio improved to 1.16x as of September 30, 2024, down from 1.19x as of June 30, 2024[2] - The weighted average net debt to EBITDA ratio for portfolio companies was not specified but is calculated based on fair value of debt investments[12] Market and Management - The company primarily invests in middle-market companies in the United States through secured and unsecured debt[18] - The company is externally managed by Goldman Sachs Asset Management, L.P.[18] - Forward-looking statements indicate potential risks and uncertainties that could materially affect actual results[19] - Investor contact for inquiries is Austin Neri at 212-902-1000[20] Gains and Losses - Net realized and unrealized gains (losses) totaled $(30,865,000), compared to $(21,292,000) in the previous period[17] - Net change in unrealized appreciation (depreciation) from non-controlled/non-affiliated investments was $56,413,000, compared to $(17,813,000) in the previous period[17] - Net increase in net assets from operations was $37,081,000, compared to $51,595,000 in the previous period[17] Share Metrics - Weighted average shares outstanding increased to 116,942,390 from 109,535,156 in the previous period[17] - The company had an investment of $1.5 million in a money market fund as of September 30, 2024[12]

Financial Performance - The company originated approximately $8.51 billion in aggregate principal amount of debt and equity investments from its formation in 2012 through September 30, 2024[166]. - As of September 30, 2024, the total investments amounted to $3,640.33 million, with a fair value of $3,442.13 million[177]. - The company primarily generates revenue through interest income from investments, with additional income from various fees and capital gains[171]. - Total investment income for the three months ended September 30, 2024, was $110.41 million, compared to $120.05 million for the same period in 2023, representing a decrease of 6.8%[190]. - Net investment income after taxes for the three months ended September 30, 2024, was $68.18 million, down from $72.95 million in the prior year, a decline of 6.5%[190]. - The company’s total investment income for the nine months ended September 30, 2024, was $330.57 million, slightly down from $339.54 million in the previous year[193]. - The company declared a quarterly distribution of $0.45 per share payable on January 27, 2025, to holders of record as of December 31, 2024[223]. Investment Portfolio - The portfolio includes $3,273.04 million in first lien/senior secured debt, with a fair value of $3,153.30 million as of September 30, 2024[177]. - The number of portfolio companies increased to 167 as of September 30, 2024, from 144 as of December 31, 2023[180]. - The median EBITDA for portfolio companies was $62.49 million as of September 30, 2024, up from $53.98 million as of December 31, 2023[180]. - Performing investments accounted for 95.5% of total investments as of September 30, 2024, down from 96.2% as of December 31, 2023[185]. - The percentage of investments graded 3 or 4 (indicating higher risk) was 9.5% as of September 30, 2024, compared to 10.4% as of December 31, 2023[184]. - The company invests primarily in U.S. middle-market companies, defined as those with annual EBITDA between $5 million and $200 million[166]. Debt and Financing - The company is permitted to borrow amounts such that its asset coverage ratio is at least 150% after borrowing, subject to Investment Company Act limitations[176]. - As of September 30, 2024, the asset coverage ratio based on the aggregate amount outstanding of senior securities was 183%, indicating a strong leverage position[203]. - The Revolving Credit Facility has an aggregate committed borrowing amount of $1,695 million, with an uncommitted accordion feature allowing an increase to $2,542.50 million under certain conditions[210]. - As of September 30, 2024, the company had outstanding borrowings of $524.67 million in USD, €0 million in Euros, £30.95 million in GBP, and CAD 83.52 million in Canadian Dollars[209]. - The company closed an offering of $360 million aggregate principal amount of 3.75% unsecured notes due 2025, maturing on February 10, 2025[213]. - The company issued $500 million aggregate principal amount of 2.875% unsecured notes due 2026, maturing on January 15, 2026[214]. - The company completed an offering of $400 million aggregate principal amount of 6.375% unsecured notes due 2027, maturing on March 11, 2027[215]. Risk Management - The company may originate "covenant-lite" loans, which have fewer financial maintenance covenants, potentially increasing risk in case of borrower default[166]. - The company regularly evaluates unfunded commitments using a proprietary risk management framework to plan capital resources and ongoing liquidity[203]. - Approximately 99.4% of the company's performing debt investments bore interest at a floating rate as of September 30, 2024[225]. - A 300 basis point increase in interest rates would result in a net income increase of $61.52 million, while a 300 basis point decrease would lead to a net income decrease of $61.52 million[226]. Management and Fees - The management fee and incentive fee compensate the investment adviser for identifying, evaluating, and monitoring investments[173]. - Management fees remained relatively stable at $8.85 million for the three months ended September 30, 2024, compared to $8.87 million for the same period in 2023[194]. Changes in Investments - The net increase in portfolio for the three months ended September 30, 2024, was $47.77 million, compared to a decrease of $88.96 million in the same period last year[188]. - The total new investment commitment amount in new portfolio companies was $157.34 million, significantly up from $49.12 million in the prior year, an increase of 219.5%[188]. - The total new investment commitment amount in existing portfolio companies was $219.48 million, up from $119.28 million, reflecting an increase of 84.0%[188]. - The weighted average yield on new investment commitments was 9.9% for the three months ended September 30, 2024, down from 11.6% in the same period last year[188]. - The number of new portfolio companies with new investment commitments increased to 15 from 8 in the prior year, indicating a growth of 87.5%[188]. Unrealized Gains and Losses - Net realized and unrealized gains (losses) for the three months ended September 30, 2024, were $(30.87) million, compared to $(21.29) million in the same period last year[191]. - The net change in unrealized appreciation on investments was $56.06 million for the three months ended September 30, 2024, compared to a depreciation of $19.90 million for the same period in 2023[197]. - Unrealized depreciation for the nine months ended September 30, 2024, was $121.01 million, while unrealized appreciation was $84.49 million[197]. - The restructuring of investments in Pluralsight, Inc. and the sale of Zodiac Intermediate, LLC contributed significantly to the net change in unrealized appreciation for the three months ended September 30, 2024[200]. - The company experienced a significant realized loss of $43.25 million from the restructuring of investments in Pluralsight, Inc. during the nine months ended September 30, 2024[195].

Financial Data and Key Metrics Changes - The net investment income per share for Q2 2024 was $0.59, an increase of 7.3% from the previous quarter [5] - The net asset value (NAV) per share decreased to $13.67, a decline of approximately 6% [5] - The total investment income for Q2 2024 was $108.6 million, down from $111.5 million in Q1 2024 [16] - The weighted average yield of the investment portfolio decreased to 11% from 11.9% in the prior quarter [13] - The weighted average net debt-to-EBITDA ratio remained flat at 6.1 times [13] Business Line Data and Key Metrics Changes - The company originated $440 million in new investment commitments during the quarter, marking the highest level of originations since the integration of the Goldman Sachs private credit platform [12] - As of June 30, 2024, total investments in the portfolio were $3.52 billion, with 98% in senior secured loans [13] - Investments on nonaccrual status increased to 3.4% of the total investment portfolio at fair value from 1.6% as of March 31, 2024 [14] Market Data and Key Metrics Changes - The company experienced significant growth in originations, with investment activity up nearly four times on a dollar basis compared to the first half of 2023 [12] - The current weighted average interest coverage of the companies in the investment portfolio remained flat at 1.5 times [13] Company Strategy and Development Direction - The company aims to continue recycling capital and bolstering the portfolio with compelling new originations [8] - The focus remains on highly profitable borrowers with strong growth and best-in-class technology, particularly in recurring revenue loans [6][20] - The company is leveraging its integration into the broader Goldman Sachs private credit platform to enhance origination capabilities [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about maximizing shareholder value despite markdowns in the quarter [18] - The improving M&A environment is expected to contribute positively to future origination opportunities [9] - Management acknowledged the challenges faced by certain portfolio companies but emphasized a selective approach to new investments [20] Other Important Information - The Board declared a third-quarter dividend of $0.45 per share, marking the company's 38th consecutive quarter of this dividend [9] - The company has $1 billion of capacity available under its secured revolving credit facility [15] Q&A Session Summary Question: On ARR loans, is the EBITDA flip a catalyst for credit events? - Management indicated that EBITDA flips could be a factor in underperformance, as companies may cut back on essential spending to generate EBITDA [19] Question: What is the target leverage profile? - The target leverage remains around 1.25 times, with the company finishing the quarter at 1.09 times, indicating capacity for new loans [21] Question: Are there changes in the approach to recurring revenue loans? - Management confirmed that the approach to recurring revenue loans has not changed, focusing on companies with best-in-class technology and sustainable growth [23] Question: Can you clarify the deal flow increase? - Management noted that both the quantity and quality of deals have improved, with a significant increase in originations compared to the previous year [24] Question: What is the comfort level with PIK income? - Management expressed comfort with current PIK levels, noting a slight decrease but indicating it would normalize below 10% [26] Question: What caused the decline in portfolio yield? - The decline in yield was primarily due to the impact of nonaccruals on income [27]

Group 1: Earnings Performance - Goldman Sachs BDC reported quarterly earnings of $0.57 per share, exceeding the Zacks Consensus Estimate of $0.52 per share, but down from $0.58 per share a year ago, representing an earnings surprise of 9.62% [1] - The company posted revenues of $108.62 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 3.08% and down from $112.08 million year-over-year [2] - Over the last four quarters, Goldman Sachs BDC has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Group 2: Stock Performance and Outlook - Goldman Sachs BDC shares have declined approximately 2.5% since the beginning of the year, while the S&P 500 has gained 9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.55 on revenues of $114.94 million, and for the current fiscal year, it is $2.14 on revenues of $454.64 million [7] Group 3: Industry Context - The Financial - SBIC & Commercial Industry, to which Goldman Sachs BDC belongs, is currently ranked in the bottom 36% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor decisions [5][6]

Financial Performance - Net investment income per share for Q2 2024 was $0.59, with adjusted net investment income per share at $0.57, yielding an annualized net investment income yield of 16.7%[2] - Total investment income for Q2 2024 was $108.6 million, down from $111.5 million in Q1 2024, primarily due to investments placed on non-accrual status[4] - Total investment income for Q2 2024 was $108,617,000, a decrease of 3.1% from $112,083,000 in Q2 2023[14] - Net investment income after taxes for the six months ended June 30, 2024, was $127,818,000, compared to $112,488,000 for the same period in 2023, reflecting a 13.7% increase[14] - Basic and diluted net investment income per share for Q2 2024 was $0.59, unchanged from Q2 2023[14] Asset and Liability Management - Net asset value (NAV) per share decreased by 6.0% to $13.67 from $14.55 as of March 31, 2024[3] - Total assets reached $3,629,325,000 as of June 30, 2024, up from $3,522,819,000 at the end of 2023, indicating an increase of about 3.0%[13] - Total liabilities rose to $2,033,431,000 as of June 30, 2024, compared to $1,920,994,000 as of December 31, 2023, representing an increase of approximately 5.8%[13] - The company had $1,955.1 million in total debt outstanding, with a combined weighted average interest rate of 5.35%[9] - The company’s total debt outstanding was $1,943,587,000 as of June 30, 2024, compared to $1,826,794,000 as of December 31, 2023, marking an increase of approximately 6.4%[13] Investment Activity - Gross originations for the quarter were $440.0 million, with net funded investment activity of $180.1 million[2] - New investment commitments were made across ten new portfolio companies and fifteen existing portfolio companies during the quarter[6] - Total investments at fair value and commitments amounted to $3,998.2 million, with 98.0% in senior secured debt[2] - Total investments at fair value increased to $3,518,742,000 as of June 30, 2024, compared to $3,414,329,000 as of December 31, 2023, reflecting a growth of approximately 3.1%[13] Dividend Information - The Company declared a regular third quarter 2024 dividend of $0.45 per share, payable to shareholders of record as of September 30, 2024[2] - The company declared a dividend of $0.45 per share, payable on October 28, 2024, to stockholders of record as of September 30, 2024[12] Non-Accrual Investments - As of June 30, 2024, investments on non-accrual status represented 3.4% and 7.6% of the total investment portfolio at fair value and amortized cost, respectively[8] - Net realized and unrealized losses on investment transactions for Q2 2024 amounted to $(121,392,000), compared to a gain of $1,332,000 in Q2 2023[14] - The company reported a net change in unrealized appreciation (depreciation) from non-controlled/non-affiliated investments of $(89,023,000) in Q2 2024[14] Operational Metrics - The ending net debt-to-equity ratio increased to 1.19x as of June 30, 2024, compared to 1.10x as of March 31, 2024[3][9] - The weighted average net debt to EBITDA ratio and interest coverage ratio are calculated based on the fair value of debt investments, excluding certain investments where these measures may not apply[1] - The ending net debt-to-equity leverage ratio was calculated using total borrowings net of cash, excluding unfunded commitments, as of June 30, 2024[12] Management Fees and Expenses - Total expenses for Q2 2024 were $40,416,000, down 13.4% from $46,704,000 in Q2 2023[14] - Management fees for Q2 2024 were $8,865,000, slightly down from $8,970,000 in Q2 2023[14] Company Focus - Goldman Sachs BDC, Inc. focuses on investing in middle-market companies primarily through secured and unsecured debt[15]

Investment Overview - The company has originated approximately $8.13 billion in aggregate principal amount of debt and equity investments from its formation in 2012 through June 30, 2024[151]. - As of June 30, 2024, the total investments amounted to $3,770.78 million, with a fair value of $3,518.74 million[160]. - The portfolio includes $3,423.49 million in first lien/senior secured debt, with a fair value of $3,245.85 million[160]. - The company focuses on lending to middle-market companies, defined as those with annual EBITDA between $5 million and $200 million[151]. - The company expects to qualify annually for tax treatment as a regulated investment company (RIC) under the Internal Revenue Code[151]. Financial Performance - Total investment income for the three months ended June 30, 2024, was $108.62 million, a decrease from $112.08 million for the same period in 2023[171]. - Net investment income after taxes for the three months ended June 30, 2024, was $66.96 million, compared to $64.50 million for the same period in 2023[172]. - Net realized and unrealized gains (losses) for the three months ended June 30, 2024, were $(121.39) million, a significant decline from $1.33 million for the same period in 2023[171]. - Interest income from investments decreased to $95.19 million for the three months ended June 30, 2024, down from $102.48 million for the same period in 2023[174]. - Payment-in-kind (PIK) income increased to $11.86 million for the three months ended June 30, 2024, compared to $8.79 million for the same period in 2023[174]. - The company reported a net increase (decrease) in net assets from operations of $(54.21) million for the three months ended June 30, 2024, compared to an increase of $65.66 million for the same period in 2023[171]. - The company experienced a net unrealized depreciation on investments of $(89.51) million for the three months ended June 30, 2024, compared to an appreciation of $6.35 million for the same period in 2023[171]. Investment Quality and Risk - Non-accrual investments rose to $284.73 million, accounting for 7.6% of total investments as of June 30, 2024, compared to 3.8% as of December 31, 2023[168]. - The median EBITDA for portfolio companies increased to $63.11 million as of June 30, 2024, from $53.98 million as of December 31, 2023[163]. - The percentage of performing debt bearing a floating rate was 99.5% as of June 30, 2024, compared to 99.9% as of December 31, 2023[163]. - The company may invest in covenant-lite loans, which have fewer financial maintenance covenants, potentially increasing risk in case of borrower default[151]. - The weighted average leverage (net debt/EBITDA) remained stable at 6.1x as of June 30, 2024[163]. Expenses and Fees - The management fee and incentive fee are the primary operating expenses, compensating the investment adviser for investment management[157]. - Total net expenses for the three months ended June 30, 2024, were $40.42 million, down from $46.70 million for the same period in 2023[171]. - Incentive fees decreased to $0 million and $10.88 million for the three and six months ended June 30, 2024, down from $7.84 million and $30.14 million for the same periods in 2023, driven by the performance of the investment portfolio[175]. Debt and Leverage - The company utilizes leverage through a revolving credit facility and various notes, aiming for an asset coverage ratio of at least 150% after borrowing[159]. - As of June 30, 2024, the asset coverage ratio based on the aggregate amount outstanding of senior securities was 181%, compared to 187% as of December 31, 2023[181]. - The company has a Revolving Credit Facility with a committed borrowing amount of $1,695.00 million, which can be increased to $2,542.50 million under certain conditions[188]. - The company issued $360.00 million of 3.75% unsecured notes due 2025, with interest payable semi-annually[191]. - The company issued $500.00 million of 2.875% unsecured notes due 2026, with interest payable semi-annually[192]. - The company issued $400.00 million of 6.375% unsecured notes due 2027, with interest payable semi-annually starting September 11, 2024[193]. Market and Interest Rate Sensitivity - A 300 basis point increase in interest rates would result in an increase of $81.08 million in interest income and a net income of $61.73 million[200]. - A 200 basis point increase would yield $54.05 million in interest income and a net income of $41.15 million[200]. - A 100 basis point increase would generate $27.03 million in interest income and a net income of $20.58 million[200]. - A 25 basis point decrease in interest rates would lead to a decrease of $6.76 million in interest income and a net income loss of $5.15 million[200]. - The company regularly measures its exposure to interest rate risk and manages it by comparing interest rate sensitive assets to liabilities[199]. - Interest rate sensitivity is a key factor in the company's earnings, influenced by the difference between investment and borrowing rates[199]. - The company acknowledges that significant changes in market interest rates could materially affect net investment income[199]. Shareholder Returns - The company declared a quarterly distribution of $0.45 per share on August 8, 2024, payable on October 28, 2024[198]. - The company has a voluntary dividend reinvestment plan (DRIP) for automatic reinvestment of cash distributions, with certain stockholders opting out[185]. - The company had a stock repurchase plan authorized for up to $75.00 million, which was temporarily suspended during the March Offering and expired on August 17, 2023[184]. Future Outlook - The company expects to generate cash from future offerings of securities, borrowings, and cash flows from operations to fund investments and operating expenses[180]. - The company may enter into credit facilities secured by certain assets, with terms depending on market conditions and business performance[181]. - Future hedging against interest rate fluctuations may involve using futures, options, and forward contracts[200].

PM Images Private Credit has been a popular topic lately. Articles about the trendy form of debt financing have been making rounds in the financial media and elsewhere. In May, Australia's Investment Magazine wrote that private credit opportunities had a moment to 'shine.' Later that month, Jamie Dimon said there could be "hell to pay" if the sector encountered trouble. Then in June, the Economist wrote that the private credit party had already ended! So there has been a lot of discussion of private credit ...