Goldman Sachs BDC (GSBD) Q2 2024 earnings summary

Executive summary

• Net investment income per share rose 7.3% sequentially to $0.59, with adjusted net investment income per share at $0.57 and annualized yield on book value of 16.7%.

• Net asset value per share declined 6% to $13.67, and earnings per share for the quarter were $(0.47), reflecting realized and unrealized losses, mainly from markdowns in select software investments.

• Origination activity reached $440 million, the highest since the 2022 platform integration, with $317 million funded and $89.6 million in previously unfunded commitments.

• Portfolio consisted of 155 companies, with 98% in senior secured loans and 99.5% of performing debt investments bearing floating rates.

• Board declared a $0.45 per share dividend for Q3 2024, payable October 28, 2024.

Financial highlights

• Total investment income was $108.6 million, down from $111.5 million in the prior quarter, mainly due to new non-accruals.

• Net investment income after taxes was $67 million, with adjusted net investment income after taxes at $65.2 million, both up sequentially.

• Net realized and unrealized losses for Q2 2024 totaled $(121.4) million, primarily from markdowns in Thrasio, LLC and Sweep Purchaser LLC.

• Net assets at June 30, 2024 were $1.6 billion, with total investments at fair value of $3.5 billion.

• Weighted average shares outstanding increased to 114.4 million from 110.1 million sequentially.

Outlook and guidance

• Management remains focused on recycling capital into high-quality opportunities, leveraging the broader Goldman Sachs platform, and maintaining a target leverage of 1.25x (current: 1.19x).

• Regular quarterly dividend of $0.45 per share maintained, with no special distribution announced.

• Equity distribution agreement allows up to $200 million in at-the-market offerings; $69.2 million raised in Q2 2024.

• The company expects to continue focusing on direct originations of secured debt to middle-market companies, emphasizing floating rate loans.