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Dec 31, 2024
Goldman Sachs BDC Q4 2024 Earnings Report
Goldman Sachs BDC, Inc. reported its financial results for the fourth quarter and full year ended December 31, 2024.
Key Takeaways
Goldman Sachs BDC, Inc. reported a net investment income of $0.48 per share for Q4 2024, with total investment income at $103.8 million. The company's net asset value per share decreased slightly to $13.41. The investment portfolio remained strong, primarily in senior secured debt, and the company declared a base quarterly dividend of $0.32 per share.
Net investment income per share for Q4 2024 was $0.48, with adjusted net investment income per share at $0.47.
Net asset value per share decreased 1.0% to $13.41 as of December 31, 2024.
The investment portfolio totaled $3,968.2 million, with 97.6% in senior secured debt.
The company declared a base first quarter 2025 dividend of $0.32 per share and a special dividend of $0.16 per share.
Goldman Sachs BDC
Goldman Sachs BDC
Forward Guidance
The company's forward guidance indicates a strategic shift towards a lower base dividend with potential for supplemental distributions, alongside a reduction in incentive fees. They also plan to manage debt maturities by utilizing their revolving credit facility.
Positive Outlook
- Reduction of base quarterly dividend to $0.32 per share, with upside potential through quarterly supplemental variable distributions.
- Permanent reduction of the income-based incentive fee and cap to 17.5% commencing March 31, 2025.
- Reduction of the incentive fee on capital gains to 17.5%.
- Successful repayment of $360.0 million aggregate principal amount outstanding of senior notes due February 10, 2025, using the senior secured revolving credit agreement.
- Authorization of two additional special dividends of approximately $0.16 per share for the next two quarters.
Challenges Ahead
- The base quarterly dividend has been reduced.
- No shares were issued during the three months ended December 31, 2024, under the equity distribution agreement.
- The company's ending net debt-to-equity ratio slightly increased from 1.16x to 1.17x.
- The decrease in total investment income was due to exits and downsize on certain investments.
- Net expenses before taxes increased by $5.1 million, primarily driven by accrued incentive fees.