Goldman Sachs BDC, Inc.

What they do

GSBD invests in debt and other securities of middle-market companies, primarily originating senior secured loans. As of June 30, 2026, its portfolio comprised 98.6% senior secured debt, with 96.9% in first lien investments, across 173 portfolio companies in 39 industries. The company is externally managed by an affiliate of Goldman Sachs and seeks current income and capital appreciation.

Revenue drivers

• Interest income from investments — Primary revenue source; net investment income per share for Q2 2026 was $0.38, or $0.37 adjusted for purchase discount amortization.
• First lien senior secured debt — Largest portfolio segment at 96.9% of investments; generates interest income with priority in the capital structure.
• Second lien and other debt investments — Smaller portion of the portfolio; higher yield but higher risk, including non-accruals (e.g., Wine.com, Chase Industries).

Recent performance

For Q2 2026, GSBD reported EPS of $0.21 and NII per share of $0.38. NAV per share decreased 0.9% to $12.06 from $12.17 at March 31, 2026. Total investments at fair value were $3,195.2 million as of June 30, 2026, down from $3,228.9 million. Net funded investment activity was negative at -$26.6 million, with new commitments of $12.9 million and funding of $114.3 million against $145.9 million in sales and repayments. Non-accruals represented 2.9% of the portfolio at fair value and 5.0% at amortized cost.

Strategy

The company aims to maintain a conservative balance sheet, targeting a net debt-to-equity ratio of 1.25x, and had decreased to that level by August 6, 2026. It declared a base dividend of $0.32 per share and a supplemental dividend of $0.03 per share for Q2 2026. In May 2026, the Board authorized a new 10b5-1 stock repurchase program of up to $75 million. Management continues to focus on restructuring and exiting non-accrual investments, as seen with Chase Industries and Thrasio.

Risks

• Credit risk on non-accrual investments — As of June 30, 2026, investments in 10 portfolio companies were on non-accrual, representing 5.0% of the portfolio at amortized cost.
• Interest rate risk — A large portion of the portfolio is floating-rate debt, and changes in SOFR or other benchmarks could affect net investment income.
• Leverage risk — At 1.35x net debt-to-equity as of June 30, 2026, the company is leveraged and could be exposed to repayment or liquidity pressures in market stress.
• Concentration in first lien loans — While first lien provides collateral protection, a significant downturn in middle-market borrowers could lead to higher losses and reduced income.

Outlook

Management expects to continue generating stable net investment income to support quarterly dividends. The company has reduced leverage to its target of 1.25x, providing flexibility for new investments. They plan to continue managing non-accruals and may deploy capital as opportunities arise. The 10b5-1 program demonstrates a commitment to returning capital to shareholders, subject to market conditions.