Goldman Sachs BDC Q2 Earnings Call Highlights

Goldman Sachs BDC NYSE: GSBD reported second-quarter 2026 net investment income of $0.38 per share, up from the prior quarter, as higher investment income and the absence of an incentive fee supported results. The company also announced that Co-Chief Executive Officer David Miller will step down from the role effective Dec. 31, with Co-CEO Vivek Bantwal set to become sole CEO. Miller, who has worked at Goldman Sachs for 22 years and has 34 years of private-credit industry experience, will remain co-CEO through year-end. He will then become an advisory director of Goldman Sachs and remain on the Private Credit Investment Committee. Justin Betzen has become co-president and co-chief operating officer alongside Tucker Greene, while Greg Watts and Steven Budig will become co-heads of Americas Direct Lending. GAAP net investment income totaled $42.2 million, while adjusted after-tax net investment income was $41.5 million. Those figures compared with $24.8 million and $24.7 million, respectively, in the first quarter. Total investment income rose to $83.7 million from $78.8 million in the preceding quarter. Chief Financial Officer and Treasurer Stan Matuszewski said income benefited from the restoration of certain investments to accrual status and from repayment activity. He said approximately $5 million of income reflected items that would not necessarily recur, including accelerated original issue discount income and income associated with restored accrual investments. The company did not earn an incentive fee during the quarter. Matuszewski said the outcome reflected GSBD’s three-year total-return lookback provision, which links advisory compensation to cumulative shareholder value, including gains and losses as well as income. The structure had resulted in an “outsized” incentive fee in the prior quarter, he said. Net asset value was $12.06 per share at June 30, down modestly from $12.17 per share at the end of the first quarter. The company said a portion of unrealized appreciation during the quarter was broad-based, while the remaining portion was tied to investments that had previously undergone workouts or restructurings and continued to face performance pressure. GSBD’s board declared a third-quarter base dividend of $0.32 per share for shareholders of record as of Sept. 30, 2026, as well as a $0.03 supplemental dividend for shareholders of record as of Aug. 31, 2026. The company said it had $100.3 million, or $0.89 per share, of undistributed taxable income at quarter-end. Matuszewski said management expects to maintain the $0.32 base dividend in the near term, while continuing to assess interest-rate trends, new-investment spreads and portfolio earnings.