Goldman Sachs BDC(US:GSBD)2022-11-04 17:45Financial Data and Key Metrics Changes - Net investment income per share was $0.60, with adjusted net investment income at $0.56 per share, resulting in an annualized net investment income yield on book value of 14.9% [7] - Net asset value per share decreased to $15.02, a decline of approximately 3.3% from the previous quarter [8][29] - GAAP net investment income for Q3 was $61.2 million, up from $49.6 million in the prior quarter, while adjusted after-tax net investment income increased to $56.7 million from $45.9 million [27][28] Business Line Data and Key Metrics Changes - The company originated $205 million in new investment commitments, with $136 million in new investments to 6 new portfolio companies and $69 million in follow-on investments to 10 existing portfolio companies [16] - Total investments in the portfolio were $3.6 billion at fair value, with 97.7% in senior secured loans [18] - The weighted average yield of the investment portfolio at cost increased to 9.9% from 8.6% in the prior quarter [19] Market Data and Key Metrics Changes - The market exhibited volatility, impacting net asset value and leading to unrealized losses [9][10] - The syndicated loan market remained largely shut, pushing borrowers towards private credit markets [10] Company Strategy and Development Direction - The company aims to maintain a focus on selective capital deployment and enhancing investor protections in deals [10] - The strategy includes a focus on senior parts of the capital structure and a commitment to reducing leverage metrics over time [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a volatile environment and continue providing attractive investment opportunities [31] - The company anticipates further volatility but believes its differentiated private credit platform will remain advantageous [31] Other Important Information - The company had $436 million of unfunded commitments as of September 30, bringing total investments and commitments to $4.1 billion [18] - The ending net debt to equity ratio increased to 1.34x from 1.25x, slightly above the target level [24] Q&A Session Summary Question: Interest coverage for the software portfolio - Management noted that they do not break out interest coverage by portfolio but provided aggregate numbers, indicating a decline from 2.1 to 1.8 [34][36] Question: Nonaccruals and their causes - Management clarified that the nonaccruals were primarily due to operational issues rather than just valuation environment changes [38][39]