Goldman Sachs BDC net asset value slides 3.7% as non-accruals climb in Q1

Goldman Sachs BDC (NYSE:GSBD) reported first-quarter 2026 results that signaled tightening credit conditions in the middle-market lending space.

For the quarter ended March 31, 2026, the company’s Net Asset Value (NAV) per share decreased 3.7% to $12.17, down from $12.64 at the close of 2025.

The decline in NAV was primarily a result of realized and unrealized losses on the investment portfolio.

The company reported a net loss of $0.12 per share for the quarter.

Net investment income (NII) stood at $0.22 per share, which equates to an annualized NII yield on book value of 7.2%.

Despite the earnings pressure, the Board of Directors maintained the status quo for income-seeking investors, declaring a second-quarter base dividend of $0.32 per share.

Credit quality remained a central focus as the company placed two additional investments on non-accrual status: One GI LLC and 3SI Security Systems.

Both first-lien senior secured debt positions were flagged due to financial underperformance.

As of March 31, 2026, Goldman Sachs BDC had investments in 11 portfolio companies on non-accrual, representing 3.2% of the total portfolio at fair value and 4.7% at amortized cost.

The company’s total investment portfolio, valued at $3,803.8 million, remains heavily weighted toward the top of the capital stack.

Senior secured debt accounts for 98.7% of the portfolio, with 97.1% held in first-lien investments.

Investment activity was muted during the quarter.

New investment commitments totaled $46.5 million, of which only $16.3 million were funded.

Combined with $64.2 million in fundings for existing commitments and $82.8 million in repayments, the company saw net funded investment activity of negative $2.3 million.

The company’s net debt-to-equity ratio rose to 1.37x, up from 1.27x at the end of December.

Of its approximately $1,920.5 million in aggregate principal debt, 62.5% is comprised of unsecured debt.

This provides the firm with a flexible capital structure, though the increase in leverage and the decline in NAV reflect a narrowing margin of error.