Goldman Sachs BDC Cuts ARR Loans to 11%, Boosts First-Lien to 97%
Goldman Sachs BDC reduced ARR-based software loans to 11% of portfolio fair value from 39% in 3Q22 and cut PIK income share to 9% in Q4 2025. First-lien exposure rose to 97%, non-accruals fell to 1.9%, Q4 NAV was $12.64 per share and NII was $0.37.
1. Portfolio Repositioning
Goldman Sachs BDC reduced ARR-based software loans from 39% at 3Q22 to 11% of portfolio fair value at year-end 2025 and decreased PIK income share to 9% in Q4 2025 from 15.3% a year earlier. First-lien loans increased to 97% of the portfolio, reflecting its strategic shift to higher priority debt after integration into the Direct Lending platform.
2. Q4 Financial Results and Dividends
The firm reported fourth-quarter net asset value of $12.64 per share, down 1% sequentially, and net investment income of $0.37 per share. The board declared a $0.03 supplemental dividend for Q4 2025 and a $0.32 base dividend for Q1 2026, as net debt-to-equity rose to 1.27x from 1.17x.
3. Capital Deployment and Credit Quality
GSBD committed $1.2 billion across 35 new deals in 2025, including $394.9 million in Q4, all first-lien, while $251.6 million in loan repayments came from 13 exits. The company repurchased 1.5 million shares for $15 million in Q4, accreting NAV by $0.04 per share, and non-accruals stood at 1.9% of portfolio fair value.