Goldman Sachs BDC Fund Value Drops 3.7% Amid Rising Non-Accruals
Summary
Goldman Sachs BDC (GSBD), a private credit fund managed by Goldman Sachs, reported a 3.7% decline in its net asset value (NAV) per share to $12.17 at the end of March. This reduction was driven by increased unrealized losses and mark-downs in its portfolio, alongside a rise in non-accruals from 2.8% to 4.7% of its loan portfolio. The majority of these issues stem from "legacy" loans originated before March 2022. While a Goldman Sachs spokesperson attributed some moves to broader market spread widening, 60% of mark-downs were due to borrower-specific events. Despite the negative asset performance, GSBD also announced a new $75 million stock buyback program and declared a 32-cent dividend per share. This news is significant for GSBD shareholders, reflecting challenges in its credit portfolio, though the impact on the broader Goldman Sachs Group (GS) is more indirect.
At the time of this announcement, GSBD was trading at $9.32 on NYSE in the Finance sector, with a market capitalization of approximately $1B. The 52-week trading range was $8.66 to $12.03. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.