Goldman Sachs BDC, Inc. (GSBD) Bundle
A Brief History of GS AcquisitionCo, Inc.
Company Overview
GS AcquisitionCo, Inc., a publicly traded company, has evolved significantly since its inception. As of 2024, it operates primarily in the financial services sector, focusing on investment management and capital markets.
Financial Performance
For the nine months ended September 30, 2024, GS AcquisitionCo reported a net investment income of $196.00 million, compared to $185.44 million for the same period in 2023. The company experienced a decrease in total investment income, which was $330.57 million in 2024, down from $339.54 million in 2023. This decline was primarily due to lower interest income, which decreased from $310.83 million to $291.89 million over the same period.
| Financial Metric | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Total Investment Income | $330.57 million | $339.54 million |
| Net Investment Income | $196.00 million | $185.44 million |
| Interest Income | $291.89 million | $310.83 million |
Expenses
The total expenses for the nine months ended September 30, 2024, were $130.76 million, down from $152.94 million in 2023. Interest and other debt expenses increased slightly from $83.21 million to $86.02 million. Management fees remained stable at approximately $26.45 million for both periods.
| Expense Type | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Total Expenses | $130.76 million | $152.94 million |
| Interest and Other Debt Expenses | $86.02 million | $83.21 million |
| Management Fees | $26.45 million | $26.76 million |
Asset Coverage and Debt
As of September 30, 2024, the company's asset coverage ratio was 183%, compared to 187% at the end of 2023. The total assets were reported at $3.34 billion, with liabilities primarily consisting of long-term debt obligations.
| Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $3.34 billion | $3.34 billion |
| Asset Coverage Ratio | 183% | 187% |
Market Performance
The market price of GS AcquisitionCo's shares at the end of September 2024 was $13.76, compared to $14.56 at the end of September 2023. The company had 117,161,940 shares outstanding as of the end of September 2024.
| Market Data | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Market Price per Share | $13.76 | $14.56 |
| Shares Outstanding | 117,161,940 | 109,563,525 |
Investment Strategy
As of 2024, GS AcquisitionCo focuses on a diverse portfolio of investments, including first lien and unsecured debt instruments. The company has committed significant resources to its investment strategy, which includes a weighted average yield on debt and income-producing investments of 11.8% at amortized cost.
| Investment Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Weighted Average Yield on Debt | 11.8% | 12.6% |
| Median EBITDA | $62.49 million | $53.98 million |
Distribution to Shareholders
For the nine months ended September 30, 2024, GS AcquisitionCo distributed $1.35 per share to common stockholders, consistent with the previous year.
| Distribution Data | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Distribution per Share | $1.35 | $1.35 |
A Who Owns Goldman Sachs BDC, Inc. (GSBD)
Ownership Structure
As of September 30, 2024, Goldman Sachs Group Inc. owned 5.5% of the outstanding shares of Goldman Sachs BDC, Inc. (GSBD), a slight decrease from 5.9% at the end of 2023.
Shareholder Composition
The ownership of GSBD is primarily institutional investors. The following table summarizes the major shareholders and their respective ownership percentages as of September 30, 2024:
| Shareholder | Ownership Percentage |
|---|---|
| Goldman Sachs Group Inc. | 5.5% |
| BlackRock, Inc. | 10.2% |
| The Vanguard Group, Inc. | 9.5% |
| State Street Corporation | 8.7% |
| Other Institutional Investors | 66.1% |
Recent Financial Performance
As of September 30, 2024, the total assets of Goldman Sachs BDC, Inc. amounted to $3.545 billion, with total liabilities at $1.959 billion. The company's net asset value per share was reported at $13.54.
Investment Portfolio Overview
The investment portfolio of GSBD as of September 30, 2024, is primarily composed of the following types of investments:
| Investment Type | Cost (in millions) | Fair Value (in millions) |
|---|---|---|
| 1st Lien/Senior Secured Debt | $3,273.04 | $3,153.30 |
| 1st Lien/Last-Out Unitranche | $166.12 | $163.30 |
| 2nd Lien/Senior Secured Debt | $55.66 | $42.89 |
| Unsecured Debt | $38.77 | $16.31 |
| Preferred Stock | $35.41 | $30.15 |
| Common Stock | $69.48 | $35.79 |
| Total | $3,640.33 | $3,442.13 |
Recent Shareholder Distributions
For the nine months ended September 30, 2024, the total distributions to stockholders amounted to $155.70 million, with a distribution per share of $1.35.
Market Capitalization
The market capitalization of GSBD as of September 30, 2024, was approximately $1.586 billion.
Investment Returns
The weighted average yield on debt and income-producing investments at amortized cost was reported at 11.8%, while the yield at fair value was 13.9%.
Goldman Sachs BDC, Inc. (GSBD) Mission Statement
Mission Overview
The mission of Goldman Sachs BDC, Inc. (GSBD) is to deliver attractive risk-adjusted returns to its stockholders by investing primarily in senior secured loans and other debt investments in middle-market companies. The firm aims to achieve this through a disciplined investment approach, leveraging the extensive expertise of Goldman Sachs Asset Management.
Financial Performance Metrics
As of September 30, 2024, GSBD reported the following financial metrics:
| Metric | Value |
|---|---|
| Total Assets | $3,545,494,000 |
| Total Liabilities | $1,959,406,000 |
| Total Net Assets | $1,586,088,000 |
| Net Asset Value per Share | $13.54 |
| Weighted Average Yield on Debt (at fair value) | 13.9% |
| Weighted Average Leverage (net debt/EBITDA) | 6.3x |
| Median EBITDA of Portfolio Companies | $62.49 million |
Investment Strategy
GSBD primarily focuses on the following investment strategies:
- Investing in senior secured loans to middle-market companies.
- Utilizing a disciplined underwriting process to assess credit risk.
- Maintaining a diversified portfolio across various industries.
- Seeking to control or obtain significant influence over the rights of investors in the loans.
Portfolio Composition
As of September 30, 2024, the investment portfolio composition is detailed below:
| Investment Type | Cost | Fair Value |
|---|---|---|
| 1st Lien/Senior Secured Debt | $3,273,037,000 | $3,153,300,000 |
| 1st Lien/Last-Out Unitranche | $166,123,000 | $163,304,000 |
| 2nd Lien/Senior Secured Debt | $55,656,000 | $42,885,000 |
| Unsecured Debt | $38,771,000 | $16,314,000 |
| Preferred Stock | $35,413,000 | $30,147,000 |
| Common Stock | $69,480,000 | $35,791,000 |
| Total Investments | $3,640,329,000 | $3,442,129,000 |
Recent Financial Results
For the three months ended September 30, 2024, GSBD reported:
| Financial Metric | Value |
|---|---|
| Net Investment Income | $68,182,000 |
| Net Realized Gain (Loss) | $(83,736,000) |
| Net Change in Unrealized Appreciation (Depreciation) | $52,871,000 |
| Distributions to Stockholders | $(52,723,000) |
| Total Increase (Decrease) in Net Assets | $(9,806,000) |
Market Position
Goldman Sachs BDC, Inc. operates in a highly competitive market for investment opportunities, focusing on middle-market companies. The firm leverages the extensive network and resources of Goldman Sachs to identify and manage investments effectively.
Conclusion
The mission of Goldman Sachs BDC, Inc. aligns with its operational strategies and financial goals, aiming to provide strong returns through disciplined investment practices.
How Goldman Sachs BDC, Inc. (GSBD) Works
Company Overview
Goldman Sachs BDC, Inc. (GSBD) operates as a business development company (BDC) that primarily invests in private middle-market companies. The company aims to provide flexible financing solutions to its portfolio companies, focusing on senior secured loans, subordinated debt, and equity investments.
Financial Performance
As of September 30, 2024, GSBD reported a net asset value (NAV) of $13.54 per share, down from $14.62 at the end of December 2023. The market price per share was $13.76 at the same date. The following table summarizes key financial metrics:
| Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Net Assets | $1,586,088,000 | $1,601,825,000 |
| Shares Outstanding | 117,161,940 | 109,563,525 |
| Net Investment Income | $196,000,000 | $185,437,000 |
| Net Realized Gains (Losses) | ($128,957,000) | ($44,209,000) |
| Distributions per Share | $1.35 | $1.35 |
Investment Strategy
GSBD focuses on investing in a diversified portfolio of middle-market companies. The company primarily engages in:
- First lien/senior secured loans
- Second lien loans
- Subordinated debt
- Equity investments
As of September 30, 2024, GSBD held investments in 167 portfolio companies, with a weighted average yield on debt investments at amortized cost of 11.8%.
Debt Structure
As of September 30, 2024, GSBD's total liabilities were $1,959,406,000, with a significant portion attributed to debt financing. The breakdown of liabilities is as follows:
| Liability Type | Amount |
|---|---|
| Debt (net of debt issuance costs) | $1,878,107,000 |
| Interest and other debt expenses payable | $8,186,000 |
| Management fees payable | $8,855,000 |
| Distribution payable | $52,723,000 |
Cash Flow Analysis
For the nine months ended September 30, 2024, GSBD generated cash flows primarily from operating activities. Below is a summary:
| Cash Flow Type | Amount |
|---|---|
| Net cash provided by operating activities | ($10,666,000) |
| Net cash provided by financing activities | $11,284,000 |
| Cash at end of period | $52,957,000 |
Portfolio Composition
GSBD's investment portfolio includes a mix of debt and equity investments across various industries. The following table illustrates the composition of the portfolio as of September 30, 2024:
| Investment Type | Fair Value | Cost |
|---|---|---|
| Non-controlled/non-affiliated investments | $3,336,893,000 | $3,502,026,000 |
| Non-controlled affiliated investments | $105,236,000 | $138,303,000 |
| Total Investments | $3,442,129,000 | $3,640,329,000 |
Market Trends and Challenges
GSBD operates within a competitive environment influenced by market conditions, interest rates, and economic factors. As of September 30, 2024, the weighted average leverage of the portfolio was 6.3x, with a median EBITDA of $62.49 million. The company continues to monitor these factors to optimize its investment strategy and manage risks effectively.
How Goldman Sachs BDC, Inc. (GSBD) Makes Money
Revenue Generation
Goldman Sachs BDC, Inc. primarily generates revenue through:
- Interest income from debt investments
- Capital gains on equity investments
- Fees from investment management and advisory services
Investment Income Breakdown
For the three months ended September 30, 2024, GSBD reported the following investment income:
| Source | Amount ($ thousands) |
|---|---|
| Interest income from non-controlled/non-affiliated investments | 97,917 |
| Payment-in-kind income | 9,961 |
| Dividend income from non-controlled affiliated investments | 468 |
| Other income | 794 |
| Total Investment Income | 110,413 |
Expenses
For the same period, GSBD's expenses were as follows:
| Expense Type | Amount ($ thousands) |
|---|---|
| Interest and other debt expenses | 29,298 |
| Management fees | 8,855 |
| Incentive fees | — |
| Professional fees | 1,335 |
| Total Expenses | 40,741 |
Net Investment Income
For the three months ended September 30, 2024, GSBD reported:
- Net investment income before taxes: $69,672 thousand
- Income tax expense: $1,490 thousand
- Net investment income after taxes: $68,182 thousand
Portfolio Overview
As of September 30, 2024, GSBD's investment portfolio included:
| Investment Type | Amortized Cost ($ millions) | Fair Value ($ millions) |
|---|---|---|
| First Lien/Senior Secured Debt | 3,273.04 | 3,153.30 |
| First Lien/Last-Out Unitranche | 166.12 | 163.30 |
| Second Lien/Senior Secured Debt | 55.66 | 42.89 |
| Unsecured Debt | 38.77 | 16.31 |
| Total Investments | 3,640.33 | 3,442.13 |
Yield on Investments
The weighted average yield on investments as of September 30, 2024, was:
| Investment Type | Weighted Average Yield (%) |
|---|---|
| First Lien/Senior Secured Debt | 11.2 |
| First Lien/Last-Out Unitranche | 12.6 |
| Second Lien/Senior Secured Debt | 12.3 |
| Unsecured Debt | 3.8 |
| Total Portfolio Yield | 10.9 |
Distributions to Stockholders
For the three months ended September 30, 2024, distributions to stockholders totaled:
- Total distributions: $52,723 thousand
- Distributions per share: $0.45
Market Data
As of September 30, 2024, the market price and NAV were as follows:
- Market price per share: $13.76
- Net asset value (NAV) per share: $13.54
- Shares outstanding: 117,161,940
Financial Ratios
Key financial ratios as of September 30, 2024:
| Ratio | Value (%) |
|---|---|
| Ratio of net expenses to average net assets | 11.22 |
| Ratio of net investment income to average net assets | 16.34 |
| Portfolio turnover | 24 |
Goldman Sachs BDC, Inc. continues to leverage its investment strategy in middle-market companies, focusing on secured debt with a substantial portion of its income generated from interest payments, complemented by capital gains and advisory fees.
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Resources:
- Goldman Sachs BDC, Inc. (GSBD) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Goldman Sachs BDC, Inc. (GSBD)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Goldman Sachs BDC, Inc. (GSBD)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.