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- **M&A Surge Continues**: Q3 2025 M&A volumes up 40.9% YoY, with activity expected to persist into 2026 due to private equity dry powder and corporate activity.
- **Investment Momentum Strong**: $470.6M in new commitments, highest since Q4 2021, with 100% first lien loans and 7 lead roles in 13 new deals.
- **Credit Quality Stable**: 1.5% nonaccruals, stable debt metrics, and minimal impact from Dental Brands ($800K exposure).
- **Financial Resilience**: GAAP NII of $0.40 per share, 12.5% annualized yield, and $400M notes issuance at 5.65%.
- **AI Strategy Focused**: Emphasis on mission-critical software companies with a proprietary risk framework to mitigate AI disruption risks.

**【Management Opening Remarks】**
- Q3 2025 M&A volumes surged 40.9% YoY, driven by risk-on sentiment, lower borrowing costs, and clearer market valuations. Base rate cuts are expected to boost deal activity into 2026.
- Adjusted dividend policy to $0.32 base dividend, reducing reliance on special dividends. Emphasis on credit selection in a competitive market.
- AI strategy focuses on mission-critical software companies with a proprietary risk framework. Q3 net investment income per share was $0.40, with a $0.04 special dividend.

**【CEO Commentary】**
- New investment commitments of $470.6M across 27 companies, highest since Q4 2021. 100% of originations in first lien loans, 7 leads in 13 new portfolio companies.
- Notable deals include $1.5B financing for Walgreens' Shields Health Solutions and Newtek Merchant Solutions refinancing.
- Leveraging Goldman Sachs platform to access high-quality opportunities, maintaining selective approach despite market activity.

**【Portfolio and Credit Quality】**
- Total investments at fair value $3.2B (98.2% senior secured loans). $374.4M repayments, 86% from legacy assets, reducing pre-2022 exposure.
- Repurchased 2.1M shares ($25.1M), accretive to NAV. Portfolio yield 10.3%, stable debt metrics (5.8x net debt/EBITDA), 1.5% nonaccruals.

**【CFO Financial Commentary】**
- Total assets $3.8B, debt $1.8B, net assets $1.5B. Net debt/equity 1.17x, below 1.25x target. Issued $400M 5.65% notes hedged to floating.
- GAAP NII $45.3M ($0.40 per share), 12.5% annualized yield. PIK income 8.2%, stable.

**【Q&A Highlights】**
- Sustained M&A activity into 2026 driven by private equity dry powder and corporate strategic deals.
- No expectation of spread widening; platform enables higher spreads via unique originations.
- Dental Brands nonaccrual minimal impact ($800K exposure), stable credit quality with legacy markdowns.

Goldman Sachs BDC (GSBD) Q3 2025 Earnings Call Transcript

- **Leadership Refresh**: New Co-CEOs Vivek Bantwal and David Miller, with Tucker Greene as President, aim to leverage Goldman Sachs' private credit platform for growth.
- **Strong Q2 Performance**: NII of $0.38 per share, NAV of $13.02, and 1.12x debt-to-equity ratio reflect disciplined portfolio management.
- **Resilient Market Activity**: $247.9M in new investments and $288M in repayments highlight active portfolio rotation, with notable exits in software and specialty logistics.
- **Credit Quality Improving**: Nonaccruals down to 1.6%, with successful resolutions of legacy positions like Lithium and Pro-PT.
- **Dividend Confidence**: $0.32 base + $0.16 special dividend declared for Q3, signaling core earnings strength.

**【Management Opening Remarks】**
- **Leadership Transition**: Alex Chi announced his departure after 31 years, with Vivek Bantwal and David Miller becoming Co-CEOs, and Tucker Greene assuming the role of President of GSBD. The transition aims to leverage Goldman Sachs' private credit platform for enhanced origination and deal flow.
- **Platform Strength**: Emphasis on the integration of GSBD into the broader private credit platform, which has improved origination capabilities and access to proprietary deal flow.

**【CEO Commentary】**
- **Market Overview**: Despite policy volatility (e.g., Liberation Day tariffs), the M&A market remained resilient with 29% YoY growth in H1 2025. Sponsors are acting in tariff-insensitive sectors like software and financial services, aligning with GSBD's strategic focus.
- **Q2 Financial Highlights**: 
  - Net Investment Income (NII) per share: $0.38 (GAAP) / $0.37 (adjusted), annualized yield of 11.4%.
  - NAV per share: $13.02 (down 1.4% QoQ due to special dividend), adjusted NAV: $12.99.
  - Debt-to-equity ratio: 1.12x (below target of 1.25x).
- **Dividend Policy**: Declared a $0.32 base dividend and $0.16 special dividend for Q3, reflecting confidence in core earnings.

**【CFO Financial Commentary】**
- **Portfolio Activity**: 
  - New investment commitments: $247.9M (highest since Q3 2024), 100% in senior secured loans.
  - Repayments: $288M (80% from legacy pre-2022 investments), including notable exits like Rubrik (2.5x revenue growth) and Zep.
- **Credit Quality**: 
  - Weighted average yield: 10.7%.
  - Nonaccruals: 1.6% of fair value (down from 1.9%), with improvements in Pro-PT and Lithium (restructured into cash-paying and equity-linked securities).
- **Leverage Management**: $793M borrowing capacity under revolving credit facility; Truist RCF spread reduced by 10bps.

**【Q&A Highlights】**
- **Leverage Outlook**: Management expects leverage to rise as new commitments fund, with a focus on selective deployment in high-quality credits.
- **Nonaccrual Resolution**: Exits of Kawa Solar and Lithium (restructured into equity-linked securities) demonstrate proactive credit management. One new nonaccrual added (Streamland Media).

Goldman Sachs BDC (GSBD) Q2 2025 Earnings Call Transcript

- **Portfolio Resilience**: 96% first lien, 3% tariff exposure, non-accruals drop to 1.9%. 
- **Yield Dynamics**: 10.8% portfolio yield, 15% EBITDA growth, 1.9x interest coverage.
- **Dividend Discipline**: $0.42 NII, 12.4% annualized yield, leverage below 1.25x target.
- **Strategic Focus**: 88% repayments redeployed, 100% new deals in first lien.

**【Management Overview】**
- **Macro Environment & Tariff Impact**: 3% of portfolio fair value (4/163 companies) exposed to China supply chain tariffs. 96% of investments in first lien with attractive LTV. New M&A activity delayed, but refinancings pivot to direct lending. New investments in low/mid 9% yields, spreads widened 25bps QoQ.

**【CEO Insights】**
- **Investment Activity**: $87.8M new commitments across 14 companies (6 new, 100% first lien). Notable deals: Vermont Information Processing (admin agent, largest lender) and Celero Commerce (long-term relationship). 88% of $179M repayments redeployed into new originations.

**【Portfolio Performance】**
- **Yield & Metrics**: Portfolio yield 10.8% (vs 11.2% prior qtr). EBITDA growth 15% YoY, net debt/EBITDA 5.8x (down from 6.2x). Interest coverage 1.9x (up from 1.8x). Non-accruals 1.9% of fair value (down from 2%).

**【Financial Results】**
- **Earnings**: GAAP NII $0.42/sh, NAV $13.20 (down 1.6% vs prior qtr). Special dividend $0.16/sh, supplemental $0.05/sh. Leverage 1.16x (target 1.25x). PIK income 11% of total (down from 15%).

**【Q&A Highlights】**
- **Yield Decline**: Driven by exiting high-coupon non-accruals, not repricing. New deals widened spreads 25bps. No immediate tariff impact on fair value, ongoing monitoring.


Goldman Sachs BDC (GSBD)-9 May 25-2025 Q1 Earnings call transcript

- **Portfolio Restructuring Success**: 96.3% first-lien positions, $858M repayments from older vintages, and 99.9% first-lien originations in Q4. 
- **Dividend Flexibility**: $0.32 base + variable supplements, $0.16 special dividends Q1-Q3 2025, and 17.5% incentive fee cap. 
- **Financial Resilience**: 14.0% annualized yield, $152M undistributed taxable income, and 1.17x leverage ratio. 
- **Strategic Growth**: 2025 outlook driven by private equity activity, with selective ARR exposure (<50%) and low tariff risk.

**【CEO Summary Section】**
- **Direct Lending Platform Growth**: Committed $13 billion in 2024, doubling 2023 activity, with a focus on middle-market origination. First-lien positions increased to 96.3% of the portfolio (from 89.4% in 2021). 
- **Dividend Restructuring**: Reset quarterly dividend to $0.32 base + variable supplements (50% of excess NII). Declared $0.16 special dividends for Q1-Q3 2025, maintaining targeted leverage below 1.25x. 
- **Portfolio Harvesting**: $858.8 million in repayments in 2024, 82% from 2021+ vintages. Q4 2024 new commitments: $173 million (99.9% first-lien). 
- **Strategic Outlook**: Expect 2025 deal volume growth driven by private equity dry powder and DPI distributions. 

**【CFO Financial Commentary】**
- **Q4 2024 Financials**: GAAP NII of $0.48 per share, 14.0% annualized yield on book value. PIK income rose to 15% (12% excluding one-time adjustments). 
- **Debt Management**: Repaid $360 million senior notes, leaving $626 million undrawn on revolving credit. Undistributed taxable income: $152 million ($1.30 per share). 
- **Leverage**: Ended Q4 at 1.17x debt/equity, below 1.25x target. 65.1% of debt unsecured. 

**【Q&A Highlights】**
- **Leverage & Dividend Sustainability**: No plans to increase target leverage; $0.32 base dividend modeled with spread compression and refinancing costs. 
- **Tariff Exposure**: <5% portfolio companies have meaningful tariff-related exposure. 
- **PIK Income Growth**: Driven by selective portfolio company amendments, not broad credit deterioration. Risk-rated portfolio companies (3-4) decreased to 6.8% (from 9.5%). 
- **ARR Loan Reduction**: Software exposure now <50% of portfolio, down from prior levels. 
- **Incentive Fee Adjustment**: Reduced cap from 20% to 17.5%, maintaining 3-year lookback for fee calculation.

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