Goldman Sachs private credit fund value falls 3.7 percent
Goldman Sachs BDC reported a net asset value of 12.17 dollars per share for the first quarter as non-accruals increased to 4.7 percent of the portfolio. The firm attributed the decline to mark-downs on legacy loans and broader market spread widening while maintaining confidence in its credit selection.
GOLDMAN SACHS BDC INC reported a 3.7% decline in net asset value to $12.17 per share during the first quarter. The drop follows a rise in unrealized losses and portfolio mark-downs disclosed in a late Thursday filing. Investors are scrutinizing private credit portfolios as artificial intelligence shifts business models within the software sector.
Non-accruals rose to 4.7% of the loan portfolio at amortized cost, up from 2.8% in the previous quarter. Management noted that legacy loans underwritten before March 2022 accounted for 99.5% of these non-accruals. The current management team took control of the fund at that time. Vivek Bantwal, co-head of private credit at GOLDMAN SACHS GROUP INC Alternatives, said internal workout teams are engaged with borrowers to maximize recovery. Roughly 58% of the portfolio consists of loans originated after the 2022 management change and are performing as expected.
