Download PDF

1. Company Snapshot

1.a. Company Description

Goldman Sachs BDC, Inc.is a business development company specializing in middle market and mezzanine investment in private companies.It seeks to make capital appreciation through direct originations of secured debt, senior secured debt, junior secured debt, including first lien, first lien/last-out unitranche and second lien debt, unsecured debt, including mezzanine debt and, to a lesser extent, investments in equities.


The fund primarily invests in United States.It seeks to invest between $10 million and $75 million in companies with EBITDA between $5 million and $75 million annually.

Show Full description

1.b. Last Insights on GSBD

Here is a 90-word analysis of the positive drivers behind Goldman Sachs BDC's recent stock performance: Goldman Sachs BDC's recent performance is driven by its strong dividend yield of 14.7%, supported by earnings and a well-constructed portfolio focused on first lien senior secured debt. The company's diverse sector exposure, including software, healthcare, and professional services, adds to its attractiveness. Despite a recent earnings miss, the BDC's forward dividend yield and favorable asset-liability spread are expected to lead to a solid EPS figure in Q4. As noted by a recent article, this creates a lucrative opportunity for income investors.

1.c. Company Highlights

2. Goldman Sachs BDC's Q3 2025 Earnings: A Resilient Performance

Goldman Sachs BDC, Inc. (GSBD) reported a net investment income per share of $0.40, beating analyst estimates of $0.37. The company's net asset value (NAV) per share stood at $12.75, representing a 2.1% decrease from the previous quarter, partly due to a $0.16 per share special dividend and markdowns on previously underperforming names. The actual EPS of $0.40 was accompanied by a third-quarter 2025 supplemental dividend of $0.04 per share, payable on December 15, 2025, and a fourth-quarter base dividend per share of $0.32 declared by the Board.

Publication Date: Nov -23

📋 Highlights
  • Net Investment Income and NAV Decline: GSBD reported NII per share of $0.40 and NAV per share of $12.75, a 2.1% drop from the prior quarter due to a $0.16 special dividend and asset markdowns.
  • Dividend Adjustments: Declared a $0.04 supplemental dividend for Q3 2025 (payable Dec 15, 2025) and a $0.32 base dividend for Q4 2025, reflecting strategic policy changes in a lower-yield environment.
  • Investment Activity: Committed $470.6M to 27 companies in first-lien loans, with a portfolio weighted average yield of 10.3% and net debt-to-equity of 1.17x.
  • M&A Market Resilience: Q3 2025 M&A volumes rose 40.9% YoY, leveraging GSBD’s proximity to Goldman Sachs’ investment banking resources for competitive advantage.
  • Portfolio Credit Quality: Weighted average interest coverage improved to 1.9x from 1.8x, while nonaccrual investments fell to 1.5% of fair value, and one new nonaccrual addition was offset by prior reductions.

Investment Activity and Portfolio Performance

During the quarter, GSBD made new investment commitments of approximately $470.6 million across 27 portfolio companies, with 100% of originations in first-lien loans. The company's portfolio had a weighted average yield of 10.3% and a net debt-to-EBITDA ratio of 5.8x, while the net debt-to-equity ratio stood at 1.17x as of September 30, 2025. The portfolio companies showed top-line growth and EBITDA growth quarter-over-quarter and year-over-year, with the weighted average interest coverage increasing to 1.9x from 1.8x.

Capital Management and Funding

GSBD issued $400 million of a 5-year investment-grade unsecured note with a coupon of 5.65% during the quarter, demonstrating its ability to access capital markets on favorable terms. The company's management believes that the current environment will continue to present opportunities for growth, driven by the M&A market and its unique position within the Goldman Sachs ecosystem.

Valuation and Outlook

With a P/E Ratio of 7.15 and a Dividend Yield of 20.5%, GSBD's valuation appears to reflect a relatively cautious outlook. Analysts estimate next year's revenue growth at -13.3%, which may put pressure on the company's net investment income. However, the company's proactive decision to adjust its dividend policy and cut the base dividend positions it well in a lower-yield environment. The proximity to its investment banking franchise serves as a competitive advantage in evaluating opportunities, potentially driving future growth.

3. NewsRoom

Card image cap

Goldman Sachs BDC, Inc. $GSBD Shares Sold by Advisors Asset Management Inc.

Dec -03

Source: defenseworld.net

Card image cap

Why I'm Parking 45% Of My BDC Capital In These 2 Names

Dec -02

Source: seekingalpha.com

Card image cap

Goldman Sachs acquires ETF firm for $2 billion in latest deal to bolster asset management division

Dec -01

Source: cnbc.com

Card image cap

Creative Planning Sells 17,845 Shares of Goldman Sachs BDC, Inc. $GSBD

Nov -25

Source: defenseworld.net

Card image cap

Goldman Sachs BDC: Big Discount And High Yield Isn't The Bargain You Think

Nov -20

Source: seekingalpha.com

Card image cap

Dividend Power Dogs: 12 Ideal Safer November Stars

Nov -16

Source: seekingalpha.com

Card image cap

Goldman Sachs stands by top lawyer Kathy Ruemmler after her emails with Jeffrey Epstein exposed

Nov -13

Source: cnbc.com

Card image cap

Goldman Sachs BDC: This Is Not A ~14% BDC Yield To Buy

Nov -12

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.27%)

6. Segments

Lending Services

Expected Growth: 9.27%

Goldman Sachs BDC's 9.27% growth in Lending Services is driven by increasing demand for middle-market loans, expansion into new industries, and a strong origination pipeline. Additionally, the company's diversified portfolio, disciplined underwriting, and active portfolio management contribute to its growth. Furthermore, the company's ability to leverage Goldman Sachs' vast resources and expertise also supports its growth momentum.

7. Detailed Products

Senior Secured Loans

Goldman Sachs BDC provides senior secured loans to middle-market companies, offering a flexible and customized financing solution to meet their capital needs.

Unitranche Loans

Goldman Sachs BDC offers unitranche loans, which combine the benefits of senior and subordinated debt into a single loan facility, providing a simplified and efficient financing solution.

Second Lien Loans

Goldman Sachs BDC provides second lien loans, which offer a flexible and patient source of capital to support companies' growth and expansion plans.

Equity Co-Investments

Goldman Sachs BDC makes equity co-investments alongside its debt investments, providing companies with a comprehensive financing solution and aligning its interests with those of its portfolio companies.

Structured Equity

Goldman Sachs BDC offers structured equity solutions, which provide companies with a flexible and customized financing solution that combines debt and equity features.

8. Goldman Sachs BDC, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Goldman Sachs BDC, Inc. operates in a niche market, providing financing solutions to middle-market companies. The threat of substitutes is low due to the specialized nature of its services.

Bargaining Power Of Customers

While Goldman Sachs BDC, Inc. has a diversified portfolio of customers, some of its borrowers may have significant bargaining power due to their size and financial stability.

Bargaining Power Of Suppliers

Goldman Sachs BDC, Inc. has a strong brand and financial position, which reduces its dependence on suppliers. The company's suppliers have limited bargaining power.

Threat Of New Entrants

While there are barriers to entry in the business development company (BDC) industry, new entrants may still pose a threat to Goldman Sachs BDC, Inc. due to the relatively low capital requirements.

Intensity Of Rivalry

The BDC industry is highly competitive, with many established players competing for a limited number of investment opportunities. Goldman Sachs BDC, Inc. faces intense rivalry from other BDCs and alternative lenders.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 53.28%
Debt Cost 6.26%
Equity Weight 46.72%
Equity Cost 9.80%
WACC 7.92%
Leverage 114.04%

11. Quality Control: Goldman Sachs BDC, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Trinity Capital

A-Score: 7.9/10

Value: 7.3

Growth: 5.6

Quality: 8.5

Yield: 10.0

Momentum: 6.5

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
Central Securities

A-Score: 7.3/10

Value: 4.8

Growth: 4.6

Quality: 8.5

Yield: 9.0

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
PennantPark

A-Score: 6.8/10

Value: 7.0

Growth: 3.2

Quality: 7.0

Yield: 10.0

Momentum: 4.0

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
Fidus

A-Score: 6.8/10

Value: 3.5

Growth: 3.9

Quality: 7.3

Yield: 10.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Goldman Sachs BDC

A-Score: 6.4/10

Value: 6.5

Growth: 4.3

Quality: 6.4

Yield: 10.0

Momentum: 1.5

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
Rand Capital

A-Score: 5.6/10

Value: 7.8

Growth: 5.6

Quality: 3.8

Yield: 10.0

Momentum: 2.0

Volatility: 4.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

10.08$

Current Price

10.08$

Potential

-0.00%

Expected Cash-Flows