Goldman Sachs BDC yields 11.7% as credit pressures impact net asset value

Goldman Sachs BDC (NYSE:GSBD) reported fourth-quarter net investment income of $0.37 per share, representing an annualized yield on book value of 11.7%.

While the firm maintained robust income levels, its net asset value (NAV) per share fell 0.9% to $12.64, down from $12.75 in the previous quarter.

The decline reflects shifting valuations across a portfolio that grew to $3.90 billion in total investments and commitments by year-end.

Credit quality remained a focal point as the company placed its first-lien senior secured debt position in Pluralsight on non-accrual status following financial underperformance.

As of December 31, GSBD held investments in nine portfolio companies on non-accrual status, representing 1.9% of the total portfolio at fair value.

Despite these headwinds, the firm’s investment mix remains heavily weighted toward the top of the capital structure, with 98.4% in senior secured debt and 96.9% in first-lien positions.

Investment activity remained steady during the period, with $394.9 million in new commitments.

After accounting for sales, repayments, and the funding of existing commitments, net funded investment activity totaled $69.5 million.

This growth contributed to an increase in the firm's ending net debt-to-equity ratio, which climbed to 1.27x from 1.17x in September.

Meanwhile, management moved aggressively to address its capital structure in early 2026.

On January 15, the firm utilized a $505 million draw on its Truist revolving credit facility to retire its 2026 Notes.

This was followed on January 28 by the closing of a $400 million offering of 5.100% unsecured notes due 2029.

These maneuvers leave the firm with a debt profile that is 68.9% unsecured, providing significant operational flexibility as it enters the new fiscal year.