Core Insights - Business Development Companies (BDCs) have become increasingly popular due to their high dividend yields, often exceeding 12.9% [3][4] - BDCs serve as crucial financing sources for middle-market companies that are too large for local banks but too small for major institutional investors [4] - Caution is advised when investing in BDCs, particularly those with sector concentration or high management fees [5][6] BDC Performance and Risks - TriplePoint Venture Growth BDC Corp. (TPVG) has a yield of 16.6% but has seen a total return decline of 15% this year, despite the tech sector's overall increase of over 21% [6][7] - Goldman Sachs BDC (GSBD) has underperformed the S&P 500 and charges high management fees, totaling approximately 3.9% on $1.5 billion in assets [8][9] - GSBD's investment income for the first half of 2025 was $94.1 million, yielding a 12.4% annualized return, which is insufficient to fully cover its 12.9% dividend yield [12][13] Alternative Investment Options - The Columbia Seligman Premium Technology Growth Fund (STK) has outperformed both the S&P 500 and GSBD, offering a stable 5% dividend that has never been cut [15] - STK is currently trading at a 5.3% discount to its net asset value, presenting a buying opportunity for investors [16] - Compared to BDCs, STK offers fewer risks and potentially higher returns, making it a compelling alternative for income-focused investors [17]

Group 1 - The company emphasizes the importance of closed-end funds for identifying directional and arbitrage opportunities due to market price deviations [1] - BDC bonds are highlighted as attractive investment opportunities, outperforming BDC common equity, with multiple publications supporting this trend [2] Group 2 - The service provided by the company includes frequent picks for mispriced preferred stocks and baby bonds, along with weekly reviews of over 1200 equities and IPO previews [2]

Group 1 - The company emphasizes the importance of closed-end funds and actively seeks directional and arbitrage opportunities due to market price deviations [1] - BDC bonds are highlighted as attractive investment opportunities, outperforming BDC common equity, with multiple publications supporting this trend [2] Group 2 - The service provided by the investing group includes frequent picks for mispriced preferred stocks and baby bonds, along with weekly reviews of over 1200 equities and IPO previews [2]

Core Insights - Goldman Sachs BDC (NYSE: GSBD) has experienced a significant decline in its portfolio value over the past year, attributed to an increase in non-performing loans and a decrease in origination volumes [1] Group 1 - The reduction in portfolio value is linked to a rise in non-performing loans [1] - Falling origination volumes have also contributed to the decline in portfolio value [1]

Group 1 - Goldman Sachs BDC has experienced a significant reduction in its portfolio value over the last year [1] - The decline in portfolio value is attributed to an increase in non-performing loans and a decrease in origination volumes [1]

Core Points - Richard Kim, a former executive at Goldman Sachs and JPMorgan Chase, has been indicted on charges of securities and wire fraud for allegedly misappropriating approximately $4 million in investor funds for his start-up online casino company, Zero Edge, most of which he reportedly lost within a week through gambling [1][3][4] Group 1: Company Overview - Zero Edge was announced by Kim after leaving Galaxy Digital in March 2024, with plans to develop a blockchain and cryptocurrency-enabled gaming app [2] - The company was incorporated in April 2024 in the Cayman Islands but never launched its casino and entered voluntary liquidation in December 2024 [5] Group 2: Financial Misconduct - Kim misappropriated about $3.8 million of investor funds shortly after closing a $4.3 million seed financing round in June 2024, transferring the funds to personal accounts for leveraged cryptocurrency trades and gambling [3][4] - In an email to investors, Kim admitted responsibility for the loss of $3.67 million, but concealed the fact that he had used the funds for personal gambling rather than a treasury management strategy [4] Group 3: Legal Proceedings - Kim was arrested on April 15, 2024, after a criminal complaint was filed by the Manhattan U.S. Attorney's office, and he was released on a $250,000 bond [5][6] - Since his arrest, judges have extended deadlines for prosecutors to either obtain a grand jury indictment or drop the charges, indicating ongoing discussions for a possible resolution [7] Group 4: Background and Investor Response - Kim reported his conduct to the Securities and Exchange Commission in July 2024, claiming gross negligence in misusing company funds but denying fraudulent intent, attributing his actions to a gambling addiction [8] - Galaxy Digital, where Kim had been a venture fund investor for six years, stated that they reported his conduct to authorities upon learning of his actions at Zero Edge [10]

Financial Data and Key Metrics Changes - The net investment income per share for Q2 2025 was 38¢, and the net asset value (NAV) per share was $13.02, a decrease of 1.4% from the previous quarter's NAV, primarily due to a special dividend of 16¢ per share [13][14] - The adjusted NAV per share for Q2 2025, accounting for the special dividend, was $12.99, a non-GAAP measure introduced due to a change in dividend policy [14] - The net debt to equity ratio at the end of Q2 2025 was 1.12 times, down from 1.16 times at the end of Q1 2025 [14][23] Business Line Data and Key Metrics Changes - New investment commitments during the quarter totaled approximately $247.9 million across 15 portfolio companies, marking the highest level of new investment commitments since Q3 2024 [15][16] - 100% of originations during the quarter were in first lien senior secured loans, indicating a continued focus on maintaining exposure to the top of the capital structure [16] - The weighted average yield of debt and income-producing investments at the end of Q2 was 10.7%, slightly down from 10.8% at the end of Q1 [20] Market Data and Key Metrics Changes - Total M&A dollar volumes in the first half of 2025 were up 29% year-over-year, indicating resilience in the M&A market despite policy volatility [11] - The interplay between the broadly syndicated loan market and direct lenders remains strong, with significant refinancing activity noted [12] Company Strategy and Development Direction - The Goldman Sachs BDC is focused on leveraging its integration into the broader private credit platform to enhance origination capabilities and scale [4][10] - The management team emphasizes a selective approach to credit quality and discipline in investment decisions, particularly in a competitive deal environment [16] Management's Comments on Operating Environment and Future Outlook - Management noted that despite macroeconomic uncertainties, there are positive indicators for active and high-quality deployment across the credit complex as the year progresses [26] - The company believes it is in the second year of a five to seven-year M&A market recovery, with a backlog of deals building despite shifting macro conditions [13] Other Important Information - The board declared a supplemental dividend of 3¢ per share and a base dividend of 32¢ per share for Q3 2025, alongside a special dividend of 16¢ per share [14] - The company utilized its stock repurchase plan, repurchasing over 1 million shares for $12.1 million during the quarter [15] Q&A Session Summary Question: Thoughts on getting leverage back up in the second half of the year - Management indicated that some commitments slipped into the next quarter, but strong activity and new deal flow are expected to increase leverage over time [29] Question: Details on non-accruals and restructurings - Management provided details on exits from non-accrual status, including improvements in certain positions and a restructuring of a position into two securities [30]

Financial Performance - Net investment income per share for the quarter ended June 30, 2025, was $0.38, or $0.37 excluding purchase discount amortization, equating to an annualized net investment income yield on book value of 11.4%[11] - Net asset value ("NAV") per share as of June 30, 2025, decreased 1.4% to $13.02 from $13.20 as of March 31, 2025[11] - The company declared a third quarter 2025 Base Dividend of $0.32 per share and a special dividend of $0.16 per share[11] - Adjusted for the impact of the Supplemental Dividend related to the second quarter's earnings, the Company's second quarter adjusted NAV per share was $12.99[11] Investment Portfolio - As of June 30, 2025, the company's total investments at fair value and commitments were $3,795.6 million, comprised of investments in 162 portfolio companies across 40 industries[11] - The investment portfolio was comprised of 97.4% senior secured debt, including 95.9% in first lien investments[11] - During the quarter, the company had new investment commitments of approximately $247.9 million, of which $126.7 million were funded[11] - Investments on non-accrual status amounted to 1.6% and 2.5% of the total investment portfolio at fair value and amortized cost, respectively, as of June 30, 2025[11] Debt and Equity - The company's ending net debt-to-equity ratio was 1.12x as of June 30, 2025, compared to 1.16x as of March 31, 2025[11] - As of June 30, 2025, 49.9% of the company's approximately $1,803.1 million aggregate principal amount of debt outstanding was comprised of unsecured debt and 50.1% was comprised of secured debt[11]

Company Performance - Goldman Sachs BDC reported quarterly earnings of $0.38 per share, missing the Zacks Consensus Estimate of $0.40 per share, and down from $0.57 per share a year ago, representing an earnings surprise of -5.00% [1] - The company posted revenues of $90.97 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 3.74%, and down from $108.62 million year-over-year [2] - Over the last four quarters, Goldman Sachs BDC has surpassed consensus EPS estimates only once and has not beaten consensus revenue estimates during the same period [2] Stock Performance - Goldman Sachs BDC shares have declined approximately 7.2% since the beginning of the year, while the S&P 500 has gained 7.9% [3] - The company's current Zacks Rank is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the coming quarter is $0.40 on revenues of $94.85 million, and for the current fiscal year, it is $1.60 on revenues of $381.25 million [7] - The outlook for the industry, specifically the Financial - SBIC & Commercial Industry, is currently in the bottom 42% of over 250 Zacks industries, which may impact the stock's performance [8]

[Company Overview and Quarterly Highlights](index=1&type=section&id=Company%20Overview%20and%20Quarterly%20Highlights) Goldman Sachs BDC, Inc. reported Q2 2025 financial results, declared dividends, and provided an overview of its operations [Company Release and Q2 2025 Overview](index=1&type=section&id=Company%20Release%20and%20Q2%202025%20Overview) GSBD reported Q2 2025 financial results and declared a Q3 base dividend of $0.32, a special dividend of $0.16, and a Q2 supplemental dividend of $0.03 per share - GSBD reported **Q2 2025** financial results and filed its 10-Q with the SEC[2](index=2&type=chunk) - Declared **Q3 2025** base dividend of **$0.32 per share** and special dividend of **$0.16 per share**[3](index=3&type=chunk) - Declared **Q2 2025** supplemental dividend of **$0.03 per share**[3](index=3&type=chunk) [Quarterly Financial and Operational Highlights](index=1&type=section&id=Quarterly%20Financial%20and%20Operational%20Highlights) NAV per share decreased 1.4% to $13.02, with net investment income at $0.38 and adjusted net investment income at $0.37 per share, alongside a $131.5 million net investment outflow and improved debt-to-equity ratio Key Financial Metrics (Quarter-over-Quarter) | Metric | Q2 2025 | Q1 2025 | Change | | :-------------------------------- | :------ | :------ | :----- | | Net investment income per share | $0.38 | N/A | N/A | | Adjusted net investment income per share | $0.37 | N/A | N/A | | Earnings per share | $0.34 | N/A | N/A | | NAV per share | $13.02 | $13.20 | -1.4% | | Ending net debt-to-equity ratio | 1.12x | 1.16x | -0.04x | - As of June 30, 2025, total investments and commitments at fair value were **$3,795.6 million**, comprising **162 portfolio companies** across **40 industries**, with **97.4%** in senior secured debt (**95.9%** in first lien investments)[3](index=3&type=chunk) - Net investment outflow of **$131.5 million**, primarily due to new investment commitments of approximately **$247.9 million** (**$126.7 million** funded) and total sales and repayment activities of **$288.8 million**[3](index=3&type=chunk) - As of June 30, 2025, non-accrual investments represented **1.6%** and **2.5%** of the total portfolio at fair value and amortized cost, respectively[3](index=3&type=chunk) - The company repurchased **1,047,183 shares** for **$12.1 million** during the quarter[3](index=3&type=chunk) [About Goldman Sachs BDC, Inc.](index=8&type=section&id=About%20Goldman%20Sachs%20BDC%2C%20Inc.) GSBD is a BDC externally managed by Goldman Sachs Asset Management, investing in US middle-market companies through secured and unsecured debt, plus equity, to generate current income and capital appreciation - GSBD is a specialized finance company regulated as a **Business Development Company (BDC)**[21](index=21&type=chunk) - Primarily invests in **U.S. middle-market companies**[21](index=21&type=chunk) - Aims to generate current income and capital appreciation through directly originated secured and unsecured debt, and select equity investments[21](index=21&type=chunk) [Financial Performance Analysis](index=2&type=section&id=Financial%20Performance%20Analysis) Analysis of Q2 2025 financial results, including investment income, expenses, and net asset changes [Selected Financial Highlights](index=2&type=section&id=Selected%20Financial%20Highlights) Q2 2025 total investment income decreased to $91.0 million from $96.9 million due to a smaller portfolio, while net expenses before taxes slightly declined to $45.6 million, driven by lower interest costs offset by higher incentive fees Selected Financial Highlights (Quarter-over-Quarter) | Metric (in $ millions, except per share data) | June 30, 2025 | March 31, 2025 | | :------------------------------------------ | :------------ | :------------- | | Investment portfolio, at fair value | $3,264.5 | $3,384.7 | | Total debt outstanding | $1,803.1 | $1,874.9 | | Net assets | $1,513.4 | $1,548.0 | | Ending net debt to equity | 1.12x | 1.16x | | Net asset value per share | $13.02 | $13.20 | | Total investment income | $91.0 | $96.9 | | Net investment income after taxes | $44.5 | $49.6 | | Net realized and unrealized gains (losses) | $(5.2) | $(18.0) | | Net investment income per share | $0.38 | $0.42 | | Adjusted net investment income per share | $0.37 | $0.41 | - Total investment income decreased by **$5.9 million** quarter-over-quarter due to a smaller portfolio[4](index=4&type=chunk) - Net expenses before taxes decreased by **$0.4 million** quarter-over-quarter, primarily due to lower interest and other debt expenses, partially offset by increased incentive fees[5](index=5&type=chunk) [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) Total investment income for Q2 2025 was $91.0 million, down from $108.6 million year-over-year, with net investment income after taxes at $44.5 million, and a net increase in net assets from operations of $39.3 million, significantly improved from a prior year decrease Consolidated Statements of Operations (Quarter-over-Quarter and Year-over-Year) | Metric (in thousands) | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :------------------------------------------ | :------ | :------ | :------ | :------ | | Total investment income | $90,970 | $108,617 | $187,910 | $220,160 | | Total expenses | $45,611 | $40,416 | $91,615 | $90,023 | | Net investment income after taxes | $44,453 | $66,958 | $94,067 | $127,818 | | Net realized and unrealized gains (losses) | $(5,164) | $(121,392) | $(23,153) | $(139,770) | | Net increase (decrease) in net assets from operations | $39,289 | $(54,213) | $70,842 | $(11,761) | | Basic and diluted net investment income per share | $0.38 | $0.59 | $0.80 | $1.14 | | Basic and diluted earnings (loss) per share | $0.34 | $(0.47) | $0.60 | $(0.10) | - Net realized and unrealized losses significantly decreased from **$121.4 million** in Q2 2024 to **$5.2 million** in Q2 2025[20](index=20&type=chunk) - Incentive fees increased from **zero** in Q2 2024 to **$8.5 million** in Q2 2025[20](index=20&type=chunk) [Investment Portfolio & Activity](index=2&type=section&id=Investment%20Portfolio%20%26%20Activity) Overview of Q2 2025 investment activities, portfolio composition, and key performance metrics [Investment Activity Summary](index=2&type=section&id=Investment%20Activity%20Summary) Q2 2025 saw $247.9 million in new First Lien/Senior Secured Debt commitments ($126.7 million funded) and $288.8 million in sales and repayments, resulting in a net investment outflow of $131.5 million Investment Activity by Type (Q2 2025) | Investment Type | New Investment Commitments ($ Millions) | % of Total Commitments | Sales and Repayments ($ Millions) | % of Total Sales/Repayments | | :------------------------ | :------------------------------------ | :--------------------- | :-------------------------------- | :-------------------------- | | 1st Lien/Senior Secured Debt | $247.9 | 100.0% | $279.1 | 96.6% | | Unsecured Debt | — | — | $9.4 | 3.3% | | Total | $247.9 | 100.0% | $288.8 | 100.0% | - New investment commitments involved **nine new** and **six existing** portfolio companies[6](index=6&type=chunk) - Sales and repayments were primarily driven by **full repayments and exits from ten portfolio companies**[6](index=6&type=chunk) [Portfolio Composition and Metrics](index=3&type=section&id=Portfolio%20Composition%20and%20Metrics) As of June 30, 2025, the portfolio comprised 162 companies, with 90.2% in First Lien/Senior Secured Debt by fair value, a weighted average yield of 12.0%, and non-accrual investments at 1.6% of fair value Portfolio Composition (June 30, 2025) | Investment Type | $ Millions (Fair Value) | % of Total | | :------------------------ | :---------------------- | :--------- | | 1st Lien/Senior Secured Debt | $2,944.4 | 90.2% | | 1st Lien/Last-Out Unitranche | $187.3 | 5.7% | | 2nd Lien/Senior Secured Debt | $49.4 | 1.5% | | Unsecured Debt | $8.3 | 0.3% | | Preferred Stock | $41.2 | 1.3% | | Common Stock | $33.5 | 1.0% | | Warrants | $0.4 | <0.1% | | Total | $3,264.5 | 100.0% | Selected Portfolio Metrics (Quarter-over-Quarter) | Metric | June 30, 2025 | December 31, 2024 | | :---------------------------------------------------------------- | :------------ | :---------------- | | Number of portfolio companies | 162 | 164 | | Percentage of performing debt bearing a floating rate | 99.4% | 99.4% | | Weighted average yield on debt and income producing investments, at amortized cost | 10.7% | 11.2% | | Weighted average yield on debt and income producing investments, at fair value | 12.0% | 14.1% | | Weighted average leverage (net debt/EBITDA) | 5.8x | 6.2x | | Weighted average interest coverage | 1.8x | 1.8x | | Median EBITDA | $66.69 million | $66.14 million | - As of June 30, 2025, non-accrual investments represented **1.6%** and **2.5%** of the total portfolio at fair value and amortized cost, respectively[7](index=7&type=chunk) [Financial Position and Capital Management](index=3&type=section&id=Financial%20Position%20and%20Capital%20Management) Review of the company's liquidity, capital resources, and consolidated balance sheet as of Q2 2025 [Liquidity and Capital Resources](index=3&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, total outstanding debt was $1,803.1 million with a 5.37% weighted average interest rate, $792.5 million available under the credit facility, $108.1 million in cash, and an improved net debt-to-equity ratio of 1.12x Debt and Liquidity (June 30, 2025) | Metric | Amount ($ Millions) | | :------------------------------------ | :------------------ | | Total debt outstanding | $1,803.1 | | Revolving Credit Facility outstanding | $903.1 | | Unsecured notes due 2026 | $500.0 | | Unsecured notes due 2027 | $400.0 | | Availability under Revolving Credit Facility | $792.5 | | Cash and cash equivalents | $108.1 | | Combined weighted average interest rate on debt | 5.37% | | Ending net debt-to-equity leverage ratio | 1.12x | - As of June 30, 2025, of the approximately **$1,803.1 million** in outstanding debt, **49.9%** was unsecured and **50.1%** was secured[3](index=3&type=chunk) [Consolidated Statements of Assets and Liabilities](index=6&type=section&id=Consolidated%20Statements%20of%20Assets%20and%20Liabilities) As of June 30, 2025, total investments at fair value were $3,264.5 million, down from $3,475.3 million, with total assets decreasing to $3,410.2 million, total liabilities to $1,896.8 million, and net assets at $1,513.4 million, resulting in a NAV per share of $13.02 Consolidated Statements of Assets and Liabilities (Year-over-Year) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :---------------- | | Total investments, at fair value | $3,264,506 | $3,475,258 | | Cash | $108,036 | $61,795 | | Total assets | $3,410,238 | $3,603,383 | | Debt (net of debt issuance costs) | $1,797,397 | $1,926,452 | | Total liabilities | $1,896,849 | $2,030,683 | | Total net assets | $1,513,389 | $1,572,700 | | Net asset value per share | $13.02 | $13.41 | - Cash significantly increased from **$61.8 million** as of December 31, 2024, to **$108.0 million** as of June 30, 2025[19](index=19&type=chunk) - Paid-in capital in excess of par value decreased from **$1,946.3 million** to **$1,934.1 million**[19](index=19&type=chunk) [Supplemental Information](index=3&type=section&id=Supplemental%20Information) Additional details on financial footnotes, non-GAAP measures, investor relations, and forward-looking statements [Endnotes and Non-GAAP Measures](index=4&type=section&id=Endnotes%20and%20Non-GAAP%20Measures) Endnotes clarify financial calculations, accounting for MMLC merger purchase discounts, non-GAAP measures like adjusted net investment income, and definitions for portfolio statistics such as weighted average leverage and interest coverage - Non-GAAP financial measures (adjusted net investment income per share, adjusted net investment income after taxes, adjusted net realized and unrealized gains/losses) are provided to exclude the full impact of the MMLC merger purchase discount[11](index=11&type=chunk) - Adjusted NAV per share is provided to account for declared and unpaid supplemental distributions, aligning with earnings for the relevant quarter[12](index=12&type=chunk) - Definitions for weighted average leverage (net debt/EBITDA) and interest coverage are provided, emphasizing the exclusion of certain investments not applicable to these metrics[14](index=14&type=chunk)[15](index=15&type=chunk)[16](index=16&type=chunk) [Conference Call and Investor Relations](index=3&type=section&id=Conference%20Call%20and%20Investor%20Relations) Goldman Sachs BDC, Inc. will host an earnings conference call on Friday, August 8, 2025, at 9:00 AM ET, with participation details and access to presentation slides and archived replays provided - The earnings conference call is scheduled for **Friday, August 8, 2025, at 9:00 AM ET**[9](index=9&type=chunk) - Investors can access the presentation slides and archived replay in the 'Investor Resources' section of the company's website[9](index=9&type=chunk) [Forward-Looking Statements](index=8&type=section&id=Forward-Looking%20Statements) This section contains a standard disclaimer for forward-looking statements, highlighting significant risks and uncertainties that may cause actual results to differ materially from expectations, with no obligation to update these statements - Press releases may contain forward-looking statements, identifiable by words such as 'may,' 'will,' 'should,' 'expect,' and 'anticipate'[22](index=22&type=chunk) - These statements involve significant risks and uncertainties, and actual results may differ materially from expectations[22](index=22&type=chunk) - The company undertakes no obligation to publicly update or revise any forward-looking statements, except as required by law[22](index=22&type=chunk)