Here are 1-3 brief analogies for Goldman Sachs BDC (GSBD):

• JPMorgan for private, mid-sized business loans.
• Blackstone for private company debt.
• Goldman Sachs, but focused on making loans to private mid-sized businesses.

• First Lien Debt: Loans that hold the most senior position in a company's capital structure, providing the first claim on assets in case of default.
• First Lien/Last-Out Unitranche Debt: A single debt facility that combines senior and junior tranches, where the last-out portion has a subordinate claim to the first-out portion within the same lien.
• Second Lien Debt: Loans that are subordinate to first lien debt but senior to mezzanine debt and equity in a company's capital structure.
• Mezzanine Debt: A hybrid form of unsecured debt that is subordinate to senior debt but senior to pure equity, often including equity warrants.
• Equity Investments: Direct ownership stakes in private companies, primarily sought for capital appreciation through growth or exit events.

Goldman Sachs BDC (GSBD) operates as a Business Development Company (BDC) that provides financing, in the form of secured debt, unsecured debt, and to a lesser extent, equity investments, to other companies. Therefore, its "customers" are the companies it lends to or invests in.

Based on the company description, GSBD primarily specializes in investments in private, middle-market companies in the United States. These companies typically have EBITDA between $5 million and $75 million annually and receive investments ranging from $10 million to $75 million.

Since GSBD's portfolio primarily consists of private companies, specific names and public symbols of its "major customers" cannot be provided, as they are not publicly traded entities.

Instead, its clientele can be broadly categorized as:

• Middle-Market Businesses: Companies that are typically larger than small businesses but smaller than large public corporations, often with annual EBITDA falling within the $5 million to $75 million range.
• Privately Held Enterprises: Businesses that are not listed on a public stock exchange, including those backed by private equity sponsors or family-owned businesses, seeking capital for growth, acquisitions, recapitalizations, or other strategic initiatives.
• Companies Across Diverse Industries: While the description does not specify particular industries, BDCs generally diversify their investments across various sectors to manage risk, providing capital to businesses operating in a wide array of economic segments.

The key risks to Goldman Sachs BDC (GSBD) primarily stem from its business model of providing debt financing to middle-market private companies and its structure as a business development company (BDC).

1. Credit Risk and Non-Performing Loans: Goldman Sachs BDC is highly susceptible to the credit risk of its portfolio companies, which are often smaller, less mature, or financially challenged private businesses. These companies typically carry higher credit risk than larger, publicly traded firms and may lack transparent public information, making them more vulnerable to economic downturns or industry-specific challenges. Recent reports indicate a significant increase in non-performing loans and non-accruals for GSBD, contributing to a decline in net asset value (NAV) due to unrealized losses on legacy assets and markdowns. The inherent nature of lending to this market segment exposes GSBD to a higher potential for defaults.
2. Interest Rate Risk: As a BDC, GSBD's net investment income is highly sensitive to fluctuations in interest rates because it borrows money to make investments. While approximately 99.4% to 100% of its portfolio consists of variable-rate loans, a decline in prevailing interest rates, particularly anticipated Federal Reserve rate cuts in 2026, can lead to a contraction in net investment income and pressure on dividend stability. Conversely, if borrowing costs rise disproportionately to the rates GSBD can charge on its investments, profit margins could suffer.
3. Market and Valuation Risk / Economic Volatility: Goldman Sachs BDC's investments are primarily in illiquid private companies, making them challenging to value accurately, and these valuations may differ materially from the actual proceeds received upon disposition. The company's performance and the value of its investments are sensitive to broader economic and market volatility, as well as geopolitical developments. Adverse economic conditions can negatively impact the creditworthiness of its portfolio companies and the fair value of its investments, leading to fluctuations or declines in the company's net asset value.

The significant and ongoing increase in capital flowing into the private credit and direct lending markets, intensifying competition for deals and potentially leading to a deterioration in underwriting standards (e.g., looser covenants, higher leverage multiples) and downward pressure on investment yields for BDCs like GSBD.

The addressable markets for Goldman Sachs BDC's (GSBD) main products and services, primarily in the United States, include the robust U.S. middle market for direct lending and the specialized mezzanine finance market.

The U.S. middle market, which GSBD targets, is substantial. It comprises approximately 200,000 individual businesses, contributing over $10 trillion in annual revenues and employing around 48 million people. Another estimate suggests the middle market consists of 300,000 midsize businesses generating $13 trillion in annual revenue. Specifically, businesses with annual revenues between $11 million and $100 million account for nearly 90% of these midsize businesses and generate $5.4 trillion in annual revenue. Goldman Sachs BDC focuses on companies with EBITDA between $5 million and $75 million, a range that aligns with the broader middle market definition, where companies generally have EBITDA between $10 million and $100 million or $15 million and $100 million annually.

The U.S. direct lending market, encompassing middle market and mezzanine investments, has seen significant growth. As of March 31, 2022, the size of direct lending to the U.S. middle market was estimated at $1.0 trillion. This market has expanded considerably, growing from approximately $400 billion in 2019 to around $1 trillion by late 2025. By 2024, assets under management by direct lenders had sharply increased to over $1.6 trillion. Projections indicate that private credit assets under management in the U.S., which include direct lending, are expected to exceed $2 trillion in 2026 and could reach $4.5 trillion by 2030. Private direct loans currently account for 62% of all commercial and industrial loans in the U.S.

Within this broader market, the mezzanine finance sector also represents a significant addressable market. The global mezzanine finance market size was estimated at $197.05 billion in 2024 and is projected to grow to $453.96 billion by 2035, with a compound annual growth rate (CAGR) of 7.88% from 2025 to 2035. North America is the largest market for mezzanine finance, holding approximately 60% of the global share, with the United States leading this regional market.

Here are the expected drivers of future revenue growth for Goldman Sachs BDC (GSBD) over the next 2-3 years:

1. Consistent Direct Origination of Senior Secured Debt: Goldman Sachs BDC is expected to continue driving revenue growth through its core strategy of directly originating senior secured loans, including first-lien and first-lien/last-out unitranche debt, to U.S. middle-market companies. This focus on high-quality, secured investments remains a cornerstone of its business model. The company's new investment commitments totaled $1.3 billion in 2024, tripling from 2023, with a significant portion allocated to first-lien loans. Furthermore, new investment commitments in Q1 2025 were $87.8 million, predominantly in first-lien loans. The median EBITDA of its portfolio companies grew by 84% from year-end 2021 to $71.8 million at year-end 2025, indicating a growth in the target market it serves.
2. Strategic Portfolio Rotation and Capital Redeployment: GSBD aims to enhance its portfolio's performance by actively realizing exits from legacy investments and rotating capital into newer, potentially higher-yielding vintage credits. This disciplined approach to portfolio management allows for the optimization of its investment base. In Q1 2025, the company recorded sales and repayment activities of $179.3 million, largely from the full repayment and refinancing of six portfolio companies, with 88% of these proceeds earmarked for redeployment into new originations post-Q1. Additionally, the percentage of Payment-in-Kind (PIK) income as a portion of total investment income decreased to 9% in Q4 2025, down from 15.3% in Q4 2024, which could reflect a strategic shift towards more cash-paying assets.
3. Leveraging the Goldman Sachs Ecosystem for Deal Origination: The affiliation with Goldman Sachs Asset Management provides GSBD with a significant competitive advantage, offering access to an extensive origination network, robust underwriting standards, and rigorous due diligence capabilities. This integration allows GSBD to participate in larger, more complex transactions and attract high-caliber borrowers in the middle market. This strong ecosystem is anticipated to support increased merger and acquisition (M&A) activity and deployment potential, backed by a solid transaction backlog.
4. Favorable Middle-Market Lending Environment: The current market dynamics, characterized by a reduction in middle-market lending by traditional banks and the substantial presence of un-invested private equity capital, create a conducive environment for BDCs like GSBD. This situation drives demand for debt financing for leveraged buyouts, growth capital, and other transactions, thereby providing Goldman Sachs BDC with ample opportunities for loan origination and portfolio expansion.

Share Repurchases

• On June 13, 2025, Goldman Sachs BDC (GSBD) entered into a 10b5-1 stock repurchase plan, authorizing the company to repurchase up to $75.0 million of its common stock if it trades below the most recently announced quarter-end net asset value (NAV) per share.
• From the implementation of the 10b5-1 plan in June 2025 through December 31, 2025, GSBD repurchased $52.2 million, or 4.7 million shares.
• During the third quarter of 2025, the company repurchased 2,136,943 shares for $25.1 million, and in the second quarter of 2025, it repurchased 1,047,183 shares for $12.1 million.

Share Issuance

• On November 15, 2023, the company entered into an equity distribution agreement which allowed it to issue up to $200.0 million in aggregate. This agreement was terminated on June 5, 2025, with no shares issued and sold through at-the-market offerings during the second quarter of 2025.

Outbound Investments

• As of December 31, 2025, Goldman Sachs BDC's total investments at fair value and commitments stood at $3,898.2 million, diversified across 171 portfolio companies in 40 industries.
• Throughout 2025, GSBD committed approximately $1.2 billion in new investments across 35 new deals.
• During the fourth quarter of 2025, the company made new investment commitments of approximately $394.9 million, funding $230.2 million of these, and reported net funded investment activity of $69.5 million after accounting for sales and repayments.