Financial Data and Key Metrics Changes - Third quarter NAV remained unchanged from the previous quarter at $8.71 [4] - Adjusted net investment income was $0.30 per share, compared to $0.31 in the second quarter [14] - Gross investment income was $0.59 per share, down from $0.61 per share in the prior quarter [14] - Net realized losses for the quarter were approximately $97.0 million, or $1.14 per share [15] - Net unrealized gains were $94.1 million, or $1.11 per share [16] Business Line Data and Key Metrics Changes - Non-accruals improved to 3.5% of the portfolio at fair market value, down from 5.6% at the end of 2024 [5] - The portfolio had a fair market value of $1.7 billion, invested across 149 companies [11] - 89% of the portfolio was invested in senior-secured debt, all in floating-rate instruments [11] - The weighted average annual effective yield of the portfolio was 11.5%, down from 12% in the prior quarter [12] Market Data and Key Metrics Changes - There was a 20% increase in the number of deals reviewed compared to the last quarter [8] - A 40% increase in the number of deals advanced to the screening stage was noted [8] - The company invested $241 million in 18 new and 13 existing portfolio companies [11] Company Strategy and Development Direction - The company is focused on resolving challenged credits and improving the quality of its investment portfolio [4] - The integration of BlackRock and HPS into the Private Financing Solutions platform is expected to enhance access to deal flow [8] - The company aims to deliver strong, sustainable returns to investors while improving credit quality and portfolio diversity [19] Management's Comments on Operating Environment and Future Outlook - Management noted that while M&A activity is showing signs of life, most borrowers are focused on refinancing existing debt [19] - The company is encouraged by the increase in deal flow and is focused on deploying capital into high-quality deals [19] - Management expressed disappointment over restructurings that did not yield expected results but emphasized that operational issues take time to resolve [23] Other Important Information - The board declared a third-quarter dividend of $0.25 per share, consistent with the base dividend level [7] - The company repurchased more than 25,000 shares during the third quarter and an additional 170,000 shares after quarter-end [7] - The weighted average interest rate on outstanding debt was 5.0% at quarter-end [18] Q&A Session Summary Question: Discussion on recent restructurings and common themes - Management acknowledged disappointment over restructurings that reverted to non-accrual status but noted no commonality among the cases [23] Question: Market environment and refinancing activity - Management confirmed that refinancing remains predominant, with M&A activity beginning to pick up, indicating potential for higher volumes in the future [25] Question: Indicators of stress in the portfolio and deals - Management is focused on credit risks and noted common themes around cyclical names and AI-related risks, but no atypical risk factors were identified [32]

Core Insights - The partnership between Goldman Sachs and T. Rowe Price aims to enhance individual investors' access to private markets through alternative investment products by late 2025, with retirement account solutions to follow in 2026 [1][9] - This initiative is a response to an executive order that expanded 401(k) plans to include private credit and private equity, potentially unlocking access to approximately $9 trillion in U.S. retirement savings [2] - Goldman Sachs will invest up to $1 billion in T. Rowe Price to strengthen their collaboration and co-develop new offerings [3][9] Product Development and Rollout - The rollout of alternative investment products will occur in stages, starting with affluent clients and later expanding to retirement savers [7] - Retirement products will initially feature small allocations to alternatives, decreasing as investors approach retirement, while specialized portfolios will combine private credit, private equity, and traditional public investments for affluent clients [4] Liquidity and Transparency Measures - To address liquidity and transparency concerns, retirement products will include daily pricing and limited liquidity options, with alternative investments potentially representing 10%–20% of retirement portfolios in the long term [5] Management Perspectives - Goldman Sachs' head of Wealth and Asset Management highlighted the goal of making these products accessible to a broader audience beyond large institutions and high-net-worth individuals [6] - T. Rowe Price's CEO expressed confidence in having various products available by mid-2026, emphasizing the importance of liquidity and daily pricing for individual investors [6] Market Context - The initiative represents a significant step in integrating alternative investments into mainstream retirement and wealth planning, combining Goldman's expertise in private markets with T. Rowe's retirement planning experience [7] - Over the past year, Goldman Sachs shares have increased by 61.8%, outperforming the industry growth of 49.3% [8]