Goldman Sachs BDC, Inc. (NYSE: GSBD)

Goldman Sachs BDC, Inc. is a specialty finance company focused on lending to middle-market companies. The company operates as a closed-end management investment company that has elected to be regulated as a business development company (BDC) under the Investment Company Act of 1940 and has also elected to be treated as a regulated investment company (RIC) for tax purposes. Goldman Sachs BDC, Inc. originates and invests in secured and unsecured debt instruments, including first lien, unitranche, second lien, and mezzanine debt, as well as select equity investments, primarily in U. S. middle-market companies defined as those with $5 million to $200 million of annual EBITDA.

The company generates revenue primarily through interest income from its debt investments. Additional revenue sources include loan origination and other fees, dividends from direct equity investments, and capital gains from the sale of investments. Fees such as directors’ fees, consulting fees, administrative fees, and tax advisory fees received from portfolio companies are also collected by Goldman Sachs BDC, Inc., subject to applicable laws and exemptive relief when investments are made alongside other client accounts managed by its Investment Adviser.

The company operates through the following segments:

• Investment Portfolio: This segment encompasses the company’s core activity of originating and managing debt and equity investments in middle-market companies. As of December 31, 2025, the portfolio consisted of 564 investments across 171 portfolio companies in 40 different industries. The largest industry exposures were in Software, Health Care Providers & Services, and Health Care Technology, representing 17.6%, 8.8%, and 8.4% of the portfolio at fair value, respectively. The portfolio is predominantly composed of secured debt, with approximately 98.4% of investments in secured debt instruments, including first lien, unitranche (including last-out portions), and second lien debt, while unsecured debt, preferred stock, common stock, and warrants make up the remainder.

• Investment Strategy and Origination: This segment involves the direct origination and structuring of loans and securities in which the company invests, with a focus on holding investments to maturity. Goldman Sachs BDC, Inc. seeks to lead negotiations and structuring of investments, often acting as the sole investor or seeking significant influence over investor rights when multiple parties are involved. The investment size typically ranges from $10 million to $75 million or above, with maturities of three to ten years, targeting companies with stable cash flows, experienced management, and defensible market positions.

• Portfolio Management and Monitoring: This segment includes the ongoing oversight of portfolio companies by the Investment Adviser, which monitors financial trends, adherence to business plans, and covenant compliance. The Investment Adviser employs an internal investment rating system grading investments from 1 to 4 based on credit risk, with Grade 1 indicating least risk and Grade 4 indicating substantially increased risk and potential for loss. Monitoring methods include periodic contact with management, board meeting participation, and review of financial statements and projections.

Goldman Sachs BDC, Inc. operates in the competitive specialty finance and middle-market lending space, where it faces competition from other BDCs, commercial and investment banks, commercial finance companies, collateralized loan obligations (CLOs), private funds including hedge funds, and private equity funds. Despite some competitors having greater financial resources or lower costs of funds, the company differentiates itself through its direct origination platform, experienced investment professionals via the Goldman Sachs Asset Management Private Credit Team, deep relationships with financial sponsors, and a disciplined investment philosophy focused on capital preservation and risk mitigation through senior secured debt structures.

The company serves a diverse customer base of U. S. middle-market companies across various industries, using its capital to support organic growth, fund acquisitions, make capital investments, or refinance indebtedness. As of December 31, 2025, the portfolio included investments in 171 portfolio companies across 40 industries, with no specific customer names disclosed in the filing, but the borrowers span sectors such as software, healthcare, and technology, reflecting the company’s broad industry focus within the middle-market segment.