Goldman Sachs BDC (GSBD) reported mixed results for its third quarter of 2026, with lower investment income and a decline in net asset value. The company's net asset value dropped to $11.70 per share as of September 30, 2026, down from $12.06 three months earlier. Co-Chief Executive Officer Vivek Bantwal attributed the decline to realized and unrealized losses in a small number of older investments facing company-specific challenges.
The company's GAAP after-tax net investment income fell to $35.3 million from $42.2 million in the second quarter, while total investment income decreased to $75 million from $83.7 million. Lower expenses, including a reduction in interest and debt expenses, partly offset the revenue decline. The board declared a fourth-quarter base dividend of $0.32 per share, consistent with previous quarters.
Investments on non-accrual rose to approximately 4.2% of the portfolio at fair value from 2.9% in the prior quarter. Co-President Tucker Greene noted that investments in two portfolio companies and additional tranches in two existing non-accrual names were placed on non-accrual during the quarter. The company is working with sponsors and lender groups to resolve issues involving illiquid private companies.
Goldman Sachs BDC repurchased about 1.5 million shares for approximately $15 million under its $75 million repurchase authorization. Looking ahead, the company expects to recycle proceeds from repayments into new investments, with future lending spreads depending on capital-market conditions and competition for deals.