Key Takeaways
- • Goldman Sachs BDC reported net asset value per share of $12.17 at the end of March 2026, roughly 3.7% lower than the prior quarter, according to a late Thursday filing.
- • Non-accruals rose to 4.7% of the loan portfolio at amortized cost, up from 2.8% in the previous quarter, with legacy loans underwritten before March 2022 accounting for 99.5% of non-accruals.
- • Management attributed the unrealized losses primarily to broader market spread widening rather than credit deterioration, while about 60% of mark-downs were borrower-specific.
- • The fund made $46.5 million of new commitments across 17 companies, received $82.8 million in first-quarter repayments, and has already received $100 million in second-quarter repayments.
- • The fund declared a 32-cent dividend and announced a new $75 million stock buyback program.
Summary
Goldman Sachs reported a decline in the value of its private credit fund for the first quarter, citing higher unrealized losses and mark-downs across its portfolio, according to Reuters. The fund, Goldman Sachs BDC, reported net asset value per share of $12.17 at the end of March, roughly 3.7% lower than the previous quarter, in a filing made late Thursday. The decline comes as investors scrutinize business development companies, or BDCs, amid concerns that advances in artificial intelligence could threaten the business models of certain software-sector borrowers.
The fund's non-accrual rate, which measures loans where borrowers have fallen well behind on interest payments, rose to 4.7% of the loan portfolio at amortized cost from 2.8% in the prior quarter. Legacy loans underwritten before March 2022, when the current management team took over, accounted for 99.5% of non-accruals. Vivek Bantwal, co-head of private credit at Goldman Sachs Alternatives, said the internal workout teams were working closely with these borrowers to maximize recovery. He added that roughly 58% of the portfolio consists of loans originated after the management change and are performing as expected.
A Goldman Sachs spokesperson said the unrealized moves were primarily a reflection of broader market spread widening rather than a sign of credit deterioration, and that the team believes the fundamental health of the private credit industry remains strong. On the Friday earnings call, management said about 60% of mark-downs were due to borrower-specific events, most notably two legacy loans to borrowers 1GI LLC and 3SI Security Systems.
During the first quarter, the fund made new commitments of roughly $46.5 million across 17 companies, including six new borrowers. Loan repayments totaled $82.8 million, more than half of which related to loans originated before 2022. The fund said it had already received $100 million in repayments in the second quarter. It declared a dividend of 32 cents per share and, on Wednesday, announced a new $75 million stock buyback program.
The fund's non-accrual rate, which measures loans where borrowers have fallen well behind on interest payments, rose to 4.7% of the loan portfolio at amortized cost from 2.8% in the prior quarter. Legacy loans underwritten before March 2022, when the current management team took over, accounted for 99.5% of non-accruals. Vivek Bantwal, co-head of private credit at Goldman Sachs Alternatives, said the internal workout teams were working closely with these borrowers to maximize recovery. He added that roughly 58% of the portfolio consists of loans originated after the management change and are performing as expected.
A Goldman Sachs spokesperson said the unrealized moves were primarily a reflection of broader market spread widening rather than a sign of credit deterioration, and that the team believes the fundamental health of the private credit industry remains strong. On the Friday earnings call, management said about 60% of mark-downs were due to borrower-specific events, most notably two legacy loans to borrowers 1GI LLC and 3SI Security Systems.
During the first quarter, the fund made new commitments of roughly $46.5 million across 17 companies, including six new borrowers. Loan repayments totaled $82.8 million, more than half of which related to loans originated before 2022. The fund said it had already received $100 million in repayments in the second quarter. It declared a dividend of 32 cents per share and, on Wednesday, announced a new $75 million stock buyback program.
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