Goldman Sachs BDC, Inc. Q4 FY2024 earnings call

• Direct Lending Americas platform had strong 2024: committed $13B, deployed $10.8B, more than double 2023. Fourth quarter had new investments and harvest activity, increasing first-lien positions.
• 2024: highest capital commitment since integration ($1.3B new commitments, 3x 2023), 71% lead role in deals, highest prepayment year ($858.8M), 82% of repayments from older vintages.
• Fourth quarter: new investments ~$173M across 18 portfolio companies, 99.9% first-lien loans. Portfolio composition: 97.6% senior secured, 91.5% first-lien, etc.
• Portfolio fundamentals: weighted average yield, net debt to EBITDA, interest coverage improved. Asset quality: non-accrual investments decreased to 2% of fair value.
• Financial results: total portfolio investments $3.5B, net assets $1.6B, net debt to equity 1.17x. Net investment income $56.6M GAAP, $55.6M adjusted. PIK income increased to 15% in Q4.

The Direct Lending Americas platform had a strong 2024, committing approximately $13 billion and deploying ~$10.8 billion, more than double 2023's activity. In the fourth quarter, new investment commitments were ~$173 million. For 2024, the platform committed its highest capital since integration, with $1.3 billion in new commitments (3x 2023's $423 million). As of December 31, 2024, total investments at fair value were $3.48 billion, with 97.6% senior secured loans, including 91.5% first-lien. Net investment income per share for the quarter was $0.48, and net asset value per share was $13.41, a decrease of ~1% from the third quarter due to net realized and unrealized losses.

• Anticipate increase in deal volumes in 2025 due to private equity dry powder and DPI pressure. First quarter deal activity muted, but expect increase as year unfolds.
• Dividend restructured: base $0.32 per share, supplemental distributions from NII excess, special dividend $0.16 per share in next three quarters. Incentive fee reduced from 20% to 17.5% for periods starting March 31, 2025.

• Uncertainty regarding tariffs and their impact on portfolio companies; preliminary analysis shows low dollar exposure but uncertainties remain.
• Exposure to government contracting and supply chain issues; analysis shows low to mid-single digit percentage of portfolio has meaningful exposure.

Q: Can you expand on reducing target leverage?

A: No plan to meaningfully increase leverage, dividend restructured to reflect current environment.

Q: Thoughts on tariffs and government contracting exposure?

A: Low to mid-single digit percentage of portfolio has exposure, predominantly US portfolio.

Q: Incentive fee and credit stability?

A: Incentive fee reduced, but fluctuates due to look back.