Goldman Sachs BDC, Inc. (GSBD) Bundle
An Overview of Goldman Sachs BDC, Inc. (GSBD)
General Summary of Goldman Sachs BDC, Inc. (GSBD)
Goldman Sachs BDC, Inc. (GSBD) is a publicly traded business development company that primarily invests in private middle-market companies. The company was formed in 2013 as a subsidiary of The Goldman Sachs Group, Inc. and focuses on providing debt and equity financing to these companies.
As of 2024, Goldman Sachs BDC's portfolio consists of investments across various sectors, with a significant emphasis on software, healthcare, and financial services. The total fair value of investments as of September 30, 2024, was approximately $3.44 billion, reflecting a diversified approach to portfolio management.
Goldman Sachs BDC's current sales revenue is generated primarily from interest income and investment gains, with total investment income reported at $330.57 million for the nine months ended September 30, 2024.
Company's Financial Performance in the Latest Financial Reports
In the latest financial reports, Goldman Sachs BDC has demonstrated solid financial performance. For the nine months ended September 30, 2024, the company reported:
- Net investment income: $196 million
- Net realized and unrealized gains (losses): $(170.64) million
- Total assets: $3.55 billion
- Total liabilities: $1.96 billion
- Net asset value (NAV) per share: $13.54
Goldman Sachs BDC's total investment income for the three months ended September 30, 2024, was $110.41 million, with a breakdown as follows:
| Income Type | Amount ($millions) |
|---|---|
| Interest income | 97.92 |
| Payment-in-kind income | 9.96 |
| Dividend income | 0.00 |
| Other income | 0.79 |
As of September 30, 2024, the company’s net increase in net assets from operations was $25.32 million.
Introduction to Company as a Leader in the Industry
Goldman Sachs BDC, Inc. stands out as one of the leading companies in the business development sector, leveraging its strong financial backing from The Goldman Sachs Group, Inc. The firm’s strategic focus on middle-market companies positions it well to capitalize on growth opportunities in a diverse range of industries.
With a robust investment strategy and a commitment to delivering value to its shareholders, Goldman Sachs BDC continues to enhance its reputation as a trusted partner for businesses seeking capital. The company is well-regarded for its expertise in managing complex financial transactions and its ability to adapt to changing market conditions, making it a formidable player in the business development landscape.
Mission Statement of Goldman Sachs BDC, Inc. (GSBD)
Mission Statement Overview
The mission statement of Goldman Sachs BDC, Inc. (GSBD) serves as a guiding framework for the company's strategic direction and long-term objectives. It reflects the organization's commitment to delivering value to its stakeholders through focused investment strategies and operational excellence.
Core Component 1: Commitment to High-Quality Investments
GSBD prioritizes high-quality investments as a cornerstone of its mission. This commitment is evident in the composition of its investment portfolio. As of September 30, 2024, the total investments at fair value amounted to $3,442.13 million, with the majority being in first lien/senior secured debt, which constitutes approximately 92.4% of the total portfolio. The weighted average yield on debt and income-producing investments stood at 11.8% at amortized cost, indicating a robust return on investment.
Core Component 2: Focus on Sustainable Growth
Sustainable growth is another key aspect of GSBD's mission statement. The company aims to enhance its portfolio through strategic acquisitions and partnerships. For instance, the number of portfolio companies increased to 167 by September 30, 2024, up from 144 the previous year. This growth is supported by a median EBITDA of $62.49 million among its portfolio companies, reflecting the financial health and growth potential of its investments.
Core Component 3: Commitment to Stockholder Value
GSBD emphasizes creating stockholder value through disciplined capital management and consistent distributions. For the nine months ended September 30, 2024, the net investment income was reported at $196 million, showcasing the company’s ability to generate profits. Furthermore, the total distributions to stockholders amounted to $155.70 million over the same period, reinforcing GSBD's commitment to returning value to its investors.
| Financial Metric | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Total Investments (at fair value) | $3,442.13 million | $3,414.33 million |
| Weighted Average Yield (at amortized cost) | 11.8% | 12.6% |
| Median EBITDA of Portfolio Companies | $62.49 million | $53.98 million |
| Net Investment Income | $196 million | $185.44 million |
| Total Distributions to Stockholders | $155.70 million | $147.82 million |
Vision Statement of Goldman Sachs BDC, Inc. (GSBD)
Vision Statement Overview
The vision statement of Goldman Sachs BDC, Inc. (GSBD) emphasizes its commitment to delivering superior risk-adjusted returns for its stockholders by investing in a diversified portfolio of debt and equity investments in middle-market companies. As of 2024, GSBD aims to leverage its expertise in asset management and investment strategies to navigate market complexities.
Commitment to Middle-Market Companies
Goldman Sachs BDC, Inc. focuses on providing capital to middle-market companies, which are often underserved by traditional financing sources. The company believes that these investments are crucial for driving economic growth and innovation. As of September 30, 2024, GSBD has invested in a total of 167 portfolio companies, reflecting its robust engagement in this sector.
Maximizing Stockholder Value
The company aims to maximize stockholder value through strategic investments and effective risk management practices. As of September 30, 2024, GSBD reported a net asset value (NAV) per share of $13.54, a decrease from $14.62 at the beginning of the year. This reflects the challenges faced in the investment landscape, including realized losses and market volatility.
Investment Strategies and Portfolio Management
GSBD employs a disciplined investment approach, focusing on senior secured debt and equity investments. The weighted average yield on debt and income-producing investments at amortized cost was reported at 11.8% as of September 30, 2024, compared to 12.6% at the end of 2023. This illustrates the company's proactive management of its portfolio to enhance returns while managing risks effectively.
Financial Performance Metrics
The financial performance of Goldman Sachs BDC, Inc. as of September 30, 2024, includes the following key metrics:
| Metric | Value |
|---|---|
| Net Investment Income (Three Months Ended) | $68.18 million |
| Net Realized and Unrealized Gains (Losses) | $(30.87) million |
| Total Investment Income | $110.41 million |
| Total Expenses | $40.74 million |
| Basic and Diluted Earnings (Loss) per Share | $0.32 |
| Distributions per Share | $0.45 |
These figures highlight the company's ongoing efforts to maintain profitability while navigating a challenging economic environment.
Focus on Risk Management
Goldman Sachs BDC, Inc. places a strong emphasis on risk management to protect its investments and ensure sustainable growth. The asset coverage ratio as of September 30, 2024, stood at 183%, demonstrating the company's prudent leverage strategy. This metric is crucial for maintaining regulatory compliance and ensuring that the company can meet its financial obligations.
Commitment to Sustainability and Social Responsibility
As part of its vision, GSBD is increasingly focused on sustainability and social responsibility. The company aims to invest in businesses that not only provide financial returns but also contribute positively to society. This includes supporting companies with strong environmental, social, and governance (ESG) practices, aligning with broader trends in responsible investing.
Core Values of Goldman Sachs BDC, Inc. (GSBD)
Integrity
The core value of integrity is fundamental to Goldman Sachs BDC, Inc. (GSBD). It emphasizes the importance of honesty and transparency in all business dealings. This value is crucial in maintaining trust with investors, clients, and stakeholders.
In 2024, GSBD demonstrated its commitment to integrity by adhering to strict compliance standards and ethical guidelines. The company maintained a net asset value per share of $13.54 as of September 30, 2024, reflecting responsible financial management and transparency in reporting.
Client Focus
Client focus signifies the dedication of GSBD to prioritize the needs and interests of its clients. This value drives the company's investment strategies and operational decisions.
In 2024, GSBD reported total investment income of $330.57 million for the nine months ended September 30, 2024, showcasing its ability to generate substantial returns for clients. Additionally, the company has actively engaged in client feedback initiatives to refine its service offerings.
Excellence
Excellence reflects GSBD's commitment to achieving the highest standards in its operations and investment practices. This value fosters a culture of continuous improvement and innovation.
As of September 30, 2024, GSBD's portfolio included first lien/senior secured debt investments with a weighted average yield of 11.2%, underscoring its focus on high-quality investment opportunities. The company's rigorous investment selection process further exemplifies its pursuit of excellence.
Teamwork
Teamwork emphasizes the collaborative spirit within GSBD, fostering an environment where diverse talents work together towards common goals.
In 2024, GSBD's operational success was supported by a workforce that included 117,297,222 shares of common stock outstanding as of November 7, 2024. The company encourages cross-departmental collaboration to enhance decision-making and investment performance.
Innovation
Innovation drives GSBD to explore new approaches and technologies in the investment landscape. This value is essential for adapting to changing market conditions.
In 2024, GSBD originated approximately $8.51 billion in aggregate principal amount of debt and equity investments since its formation, highlighting its innovative strategies in capital deployment. The company continuously seeks to leverage technology to enhance operational efficiency and investment outcomes.
| Core Value | Description | 2024 Commitment Example |
|---|---|---|
| Integrity | Honesty and transparency in business dealings | Net asset value per share of $13.54 as of September 30, 2024 |
| Client Focus | Prioritizing client needs and interests | Total investment income of $330.57 million for the nine months ended September 30, 2024 |
| Excellence | Commitment to high standards in operations | Weighted average yield of 11.2% on first lien/senior secured debt investments |
| Teamwork | Collaborative spirit within the organization | 117,297,222 shares of common stock outstanding as of November 7, 2024 |
| Innovation | Exploring new approaches in the investment landscape | Originated approximately $8.51 billion in aggregate principal amount of investments |
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Updated on 16 Nov 2024
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.