Goldman Sachs BDC, Inc. (GSBD): Business Model Canvas [Dec-2025 Updated]

You're looking to map the core engine of Goldman Sachs BDC, Inc. (GSBD), and frankly, it's a smart move to see how they generate that income stream directly from the middle market. This isn't just a passive fund; it's a highly structured financing vehicle where the brand access is a huge asset, backing a $3.8 billion investment portfolio as of September 30, 2025. The real story is in the security and yield: they've built this structure to deliver a base quarterly dividend of $0.32 per share, with 98.2% of assets sitting in senior secured debt, all while managing a net debt-to-equity ratio of 1.17x. So, how do they source these deals, manage the costs like management fees, and turn that into the $91.6 million in Total Investment Income seen in Q3 2025? Dive into the nine essential building blocks of the Goldman Sachs BDC, Inc. (GSBD) Business Model Canvas below to see the mechanics.

Goldman Sachs BDC, Inc. (GSBD) - Canvas Business Model: Key Partnerships

You're mapping out the core relationships that power Goldman Sachs BDC, Inc.'s operations as of late 2025. These aren't just vendors; they are structural anchors for deal sourcing, capital, and management expertise.

Goldman Sachs Asset Management, L.P. for external management

Goldman Sachs BDC, Inc. relies on Goldman Sachs Asset Management, L.P. (GSAM), which is a wholly-owned subsidiary of The Goldman Sachs Group, Inc., to serve as its Investment Adviser. This relationship dictates the day-to-day investment decisions and portfolio management.

• Incentive Fee structure was recently reduced from 20.0% to 17.5%.
• Base Management Fee is 1.5%.
• GSAM is the Sponsor of Goldman Sachs BDC, Inc..

The Goldman Sachs Group, Inc. for brand and origination network

The connection to The Goldman Sachs Group, Inc. provides the essential brand trust and access to proprietary deal flow that many other BDCs simply don't have. Management highlighted the integration of the BDC business with the merchant bank and special situations group, creating a unified private credit team. This unified team opened the aperture for Goldman Sachs BDC, Inc. to take advantage of proprietary origination and deal flow previously unavailable to its family of funds.

• The Goldman Sachs Group, Inc. formed Goldman Sachs BDC, Inc. to focus on middle-market lending.
• Top holders of Goldman Sachs BDC, Inc. among 13F filers include The Goldman Sachs Group Inc..

Commercial banks providing the credit facility

Liquidity is secured through a senior secured revolving credit facility, recently amended with Truist Bank as the administrative agent. This facility is key to maintaining operational flexibility and funding new investments. The latest filings show significant capacity and favorable terms resulting from recent amendments.

The Twelfth Amendment, effective June 24, 2025, extended the final maturity date for Extending Lenders to June 2030.

Private Equity sponsors driving middle-market deal flow

Private Equity sponsors are a primary source of the middle-market companies that Goldman Sachs BDC, Inc. targets. The environment remains active, with management noting a resilient M&A market.

• Total M&A dollar volumes in the first half of 2025 were up 29% year-over-year.
• New investment commitments for the quarter ended June 30, 2025, were approximately $247.9 million across 15 portfolio companies.
• New investment commitments for the quarter ended September 30, 2025, were approximately $470.6 million.
• The portfolio as of September 30, 2025, comprised investments in 171 portfolio companies.

Co-lenders and syndication partners for large transactions

For larger transactions, syndication with co-lenders is necessary to deploy capital efficiently and manage exposure. The portfolio composition reflects a strong preference for senior secured debt, which often involves these partners.

• As of June 30, 2025, the investment portfolio was comprised of 97.4% senior secured debt.
• As of September 30, 2025, 96.7% of investments were in first lien investments.
• As of June 30, 2025, approximately 50% of total principal amount of debt outstanding was in unsecured debt.

Finance: draft 13-week cash view by Friday.

Goldman Sachs BDC, Inc. (GSBD) - Canvas Business Model: Key Activities

You're mapping out the core engine of Goldman Sachs BDC, Inc. (GSBD) as of late 2025, focusing on the hard numbers from the latest reporting cycle, which is the third quarter ended September 30, 2025. Here's what the operational data tells us about their key activities.

Direct origination and underwriting of secured debt investments

The firm was definitely active in deploying capital in the third quarter of 2025, hitting the highest commitment level since the fourth quarter of 2021. This activity is centered on middle-market lending, using the strength of the Goldman Sachs franchise to secure deals.

The investment origination metrics for Q3 2025 were:

• New investment commitments totaled approximately $470.6 million.
• Of that, $266.9 million was funded during the quarter.
• Fundings of previously unfunded commitments added another $47.7 million.
• 100% of new originations were in first-lien loans.
• New commitments were spread across 13 new and 14 existing portfolio companies.

Sales and repayments were also a major component of activity, totaling $374.4 million for the quarter.

Proactive portfolio monitoring and credit risk management

Managing risk means keeping a close eye on the quality and structure of the assets on the balance sheet. As of September 30, 2025, the portfolio composition shows a clear preference for senior secured debt.

Here is a snapshot of the investment portfolio structure and credit health:

The non-accrual rate of 1.5% was a slight improvement from 1.6% at the end of the second quarter. Still, one position, Vardiman Black Holdings, LLC, was placed on non-accrual status during the quarter.

Capital raising through debt and equity issuances

Goldman Sachs BDC, Inc. actively manages its capital structure to support investment activity and maintain leverage within target ranges. They raised capital via unsecured debt during the quarter.

Key financing and leverage figures as of September 30, 2025:

• Issued $400 million of a five-year investment grade unsecured note with a coupon of 5.65%.
• Aggregate principal amount of debt outstanding was $1,853.0 million.
• Ending net debt-to-equity ratio was 1.17x.
• This remains below the stated target leverage of 1.25x.
• Availability under the Revolving Credit Facility was $1,142.6 million.

Also, the company engaged in equity management by repurchasing shares; they bought back 2,136,943 shares for $25.1 million under the 10b5-1 plan.

Calculating and distributing dividends to public shareholders

Distributions are a core part of the BDC model, and Goldman Sachs BDC, Inc. announced a revised structure in 2025, moving to a lower base with variable supplemental payments.

The declared dividends based on Q3 2025 results and forward visibility are:

• Q3 2025 Supplemental Dividend declared: $0.04 per share (payable on or about December 15, 2025).
• Q4 2025 Base Dividend declared: $0.32 per share (payable on or about January 27, 2026).
• The annualized base dividend rate is 4 times the base, equaling $1.28 per share.
• The forward dividend yield based on the base rate was cited around 12.65%.

For context, the Q2 2025 distribution included a base of $0.32 per share and a special dividend of $0.16 per share.

SEC and NYSE regulatory compliance as a BDC

Operating as a publicly traded BDC requires rigorous adherence to financial reporting standards. The primary evidence of this activity is the timely filing of required reports.

For the period ending September 30, 2025, Goldman Sachs BDC, Inc. filed its Form 10-Q with the U.S. Securities and Exchange Commission. The company also announced its Q3 2025 results via an 8-K filing on November 6, 2025.

Goldman Sachs BDC, Inc. (GSBD) - Canvas Business Model: Key Resources

You're looking at the core assets that power Goldman Sachs BDC, Inc.'s ability to originate and manage middle-market debt. These aren't just line items on a balance sheet; they are the engines driving its direct lending strategy.

The Goldman Sachs brand and global financial ecosystem is a primary, though intangible, resource. This affiliation provides immediate credibility in deal-making and access to a vast network of corporate relationships that feed the origination pipeline. This ecosystem supports the firm's ability to deploy capital effectively across the U.S. middle-market.

The scale of the investment activity is substantial. As of September 30, 2025, the total portfolio, including unfunded commitments, stood at $3,833.2 million. This capital base allows for significant deployment, as evidenced by new investment commitments reaching approximately $470.6 million during the third quarter of 2025, which was the highest level since the fourth quarter of 2021.

Access to significant debt capital is critical for a Business Development Company (BDC) like Goldman Sachs BDC, Inc. As of the end of the third quarter of 2025, the total debt outstanding was $1.8 billion. The structure of this debt shows a clear preference for unsecured funding, with 70.2% of the approximately $1,853.0 million aggregate principal amount of debt outstanding being unsecured debt.

The firm manages its leverage conservatively relative to its stated target. The ending net debt-to-equity ratio as of September 30, 2025, was 1.17x, which remains below the target leverage of 1.25x. This buffer is a key resource for absorbing potential credit volatility.

The quality and structure of the investment portfolio itself represent a core resource. This is where the experienced investment professionals from Goldman Sachs Asset Management translate brand access into disciplined credit selection. Here's a quick look at the portfolio composition as of September 30, 2025:

The proprietary deal sourcing and due diligence processes, backed by the broader Goldman Sachs platform, are essential for consistently accessing attractive, directly originated opportunities. This sourcing advantage helps maintain a high weighted average yield on debt and income producing investments, which stood at 10.3% at amortized cost for the third quarter of 2025.

The firm's operational advantages include:

• Access to the global financing markets, evidenced by the issuance of $400 million of unsecured notes with a 5.65% coupon during Q3 2025.
• A disciplined focus on credit quality, keeping non-accruals at 1.5% of fair value as of September 30, 2025.
• The ability to recycle capital, with 86% of repayments in Q3 2025 coming from pre-2022 investments, allowing rotation into newer credits.

Finance: draft 13-week cash view by Friday.

Goldman Sachs BDC, Inc. (GSBD) - Canvas Business Model: Value Propositions

High current income for investors via a base quarterly dividend of $0.32 per share

The Board declared a fourth quarter 2025 Base Dividend of $0.32 per share payable to shareholders of record as of December 31, 2025. This was accompanied by a third-quarter supplemental dividend of $0.04 per share. The Net Investment Income per share for the third quarter ended September 30, 2025, was reported at $0.40.

Highly secured investment portfolio with 98.2% in senior secured debt

The investment portfolio as of September 30, 2025, showed a significant focus on the most secure parts of the capital structure.

• Investment portfolio comprised of 98.2% senior secured debt.
• Within senior secured debt, 96.7% were first lien investments.
• Investments on non-accrual status amounted to 1.5% of the total investment portfolio at fair value as of September 30, 2025.

Customized, flexible financing solutions for U.S. middle-market companies

Goldman Sachs BDC, Inc. provided capital solutions across a broad base of middle-market entities, with high activity in new commitments during Q3 2025.

The firm led seven new deals in the third quarter, demonstrating the advantage of the Goldman Sachs franchise.

Stability from a conservative net debt-to-equity ratio of 1.17x in Q3 2025

The company maintained leverage below its stated target, signaling a conservative approach to capital structure management.

• Ending net debt-to-equity ratio as of September 30, 2025: 1.17x.
• Target leverage ratio: 1.25 times.
• Net Asset Value (NAV) per share as of September 30, 2025: $12.75.

Access to the extensive resources and expertise of the Goldman Sachs platform

The platform facilitated significant deal flow and funding capacity, which supports the value proposition for both borrowers and investors.

The company had approximately $1,143 million of borrowing capacity remaining under the revolving credit facility at quarter end. The firm issued $400 million of unsecured notes with a 5.65% coupon during the period.

Goldman Sachs BDC, Inc. (GSBD) - Canvas Business Model: Customer Relationships

You're managing a BDC that relies on deep relationships with both the companies it lends to and the shareholders who provide the capital. For Goldman Sachs BDC, Inc. (GSBD), this means a multi-faceted approach to relationship management, spanning portfolio executives, sponsors, and public investors.

Direct, high-touch relationship management with portfolio company executives

Goldman Sachs Asset Management Private Credit maintains an active approach to portfolio management, which includes direct engagement with portfolio company management throughout the investment lifecycle, from sourcing through monitoring and maturity. This engagement may involve periodic or regular contact to discuss financial position, requirements, and accomplishments. The Investment Adviser also attends and participates in board meetings or presentations by portfolio companies. As of June 30, 2025, the investment portfolio was comprised of investments in 162 portfolio companies across 40 industries.

The broader Goldman Sachs Asset Management (GSAM) structure supports this, with various investment teams conducting thousands of company meetings per year, including onsite visits to facilities and meetings with customers, suppliers, and competitors. This engagement informs the assessment of management quality, business model, and long-term value creation, including ESG considerations. The integration of the BDC business with the merchant bank and special situations group is intended to open proprietary origination and deal flow for the BDC complex.

Rigorous due diligence and ongoing performance review of borrowers

Monitoring the credit health of borrowers is continuous. The Investment Adviser grades the credit risk of all investments on a scale of 1 to 4 no less frequently than quarterly. This review assesses the portfolio company's success in adhering to its business plan and compliance with covenants. The process includes reviewing monthly and quarterly financial statements and projections. As of September 30, 2025, the Company had investments in eight portfolio companies on non-accrual status, which amounted to 1.5% of the total investment portfolio at fair value.

Here's a look at the portfolio composition and risk metrics as of the third quarter of 2025:

The platform focuses on mission-critical, market-leading companies with core systems of record across software deals, using a proprietary framework to assess software and AI disruption risk implemented for over 2 years.

Consistent dividend policy with potential for supplemental distributions

Goldman Sachs BDC, Inc. (GSBD) has established a clear base dividend structure with the potential for variable supplemental payments based on earnings performance. The Board declared a new base dividend structure in 2025, which includes a commitment to pay out at least 50% of Net Investment Income (NII) in excess of the Base Dividend as a Supplemental Dividend, when sufficient NII is available. For the third quarter ended September 30, 2025, the Net Investment Income per share was $0.40.

Here are the recent dividend declarations reflecting this policy:

• Fourth Quarter 2025 Base Dividend declared: $0.32 per share (payable on or about January 27, 2026).
• Third Quarter 2025 Supplemental Dividend declared: $0.04 per share (payable on or about December 15, 2025).
• Second Quarter 2025 Special Dividend declared: $0.16 per share (payable on or about October 28, 2025).
• Second Quarter 2025 Supplemental Dividend declared: $0.03 per share (payable on or about September 15, 2025).

The annualized Net Investment Income yield on book value for the third quarter of 2025 equated to 12.5%.

Long-term partnership focus with private equity sponsors

The relationship with strategic sponsors, typically private equity firms, is integral to deal flow and ongoing portfolio oversight. Goldman Sachs BDC, Inc. seeks to make capital appreciation through direct originations of various debt types, including first lien, first lien/last-out unitranche, and second lien debt. The Investment Adviser maintains contact with the financial or strategic sponsor to discuss the portfolio company's financial position and accomplishments. Furthermore, the integration with Goldman Sachs' merchant bank and special situations group is designed to provide access to proprietary origination and deal flow that might otherwise be unavailable to the BDC complex, signaling a commitment to a long-term, integrated partnership approach with the broader Goldman Sachs platform to source opportunities.

Finance: draft 13-week cash view by Friday.

Goldman Sachs BDC, Inc. (GSBD) - Canvas Business Model: Channels

You're mapping out how Goldman Sachs BDC, Inc. reaches its customers-the investors-and how it sources its deals. It's a mix of public market access and proprietary sourcing.

Direct origination team leveraging the Goldman Sachs network for deal flow

The primary channel for deploying capital relies heavily on the internal ecosystem. The integration of the BDC business with the merchant bank and special situations group created a unified private credit team, which opened the aperture for proprietary origination and deal flow previously unavailable to its family of funds. This internal sourcing advantage is key.

• Total M&A dollar volumes in Q3 2025 were 40.9% higher year-over-year compared to Q3 2024.
• New investment commitments in Q3 2025 reached approximately $470.6 million, the highest level since Q4 of 2021.
• 100% of originations for Q3 2025 were in first lien loans.

Public listing on the New York Stock Exchange (NYSE: GSBD) for investors

The listing on the New York Stock Exchange provides the essential channel for equity capital from a broad base of public investors. This public float allows for capital raising and provides a liquid market for existing shareholders. The Net Asset Value (NAV) per share serves as a key metric for these investors.

The stock traded at a discount to NAV in early December 2025.

Investor presentations and SEC filings (10-Q, 10-K) for financial disclosure

Transparency through mandated regulatory filings and voluntary investor materials is the formal channel for communicating financial health and strategy to the market. The total investment portfolio size dictates the scale of the business being managed.

• Q3 2025 financial results were filed on Form 10-Q with the U.S. Securities and Exchange Commission on November 6, 2025.
• Total investments at fair value and commitments as of September 30, 2025, totaled $3,833.2 million.
• Net investment income per share for the quarter ended September 30, 2025, was $0.40.

Investment banking and private wealth channels of the parent company

The management structure itself acts as a critical channel. Goldman Sachs Asset Management oversees the BDC, and the relationship with the broader investment banking franchise provides deal sourcing and underwriting support. This relationship is explicitly cited as a competitive advantage for the platform.

Earnings conference calls for analyst and investor communication

The quarterly earnings conference call is the direct, real-time communication channel used to discuss performance with analysts and institutional investors. This is where management provides color on the deal pipeline and credit quality.

• The Q3 2025 earnings conference call took place on Friday, November 7, 2025, at 9:00 am Eastern Time.
• The Board declared a Q4 2025 Base Dividend of $0.32 per share and a Q3 2025 Supplemental Dividend of $0.04 per share.

Goldman Sachs BDC, Inc. (GSBD) - Canvas Business Model: Customer Segments

You're looking at the core groups that provide capital to Goldman Sachs BDC, Inc. (GSBD) and the groups that receive that capital. This is about who is on both sides of the balance sheet for the investments made by Goldman Sachs BDC, Inc. as of late 2025.

Public shareholders seeking high-yield, income-focused BDC exposure are attracted by the regular distributions. For the quarter ended September 30, 2025, the Adjusted Net Investment Income (NII) per share was reported at $0.40. The Board declared a fourth-quarter 2025 base dividend of $0.32 per share, alongside a third-quarter supplemental dividend of $0.04 per share, bringing the total distribution for that quarter to $0.36 per share. The annualized net investment income yield on book value for the third quarter of 2025 equated to 12.5%. As of September 30, 2025, the Net Asset Value (NAV) per share stood at $12.75. Management signaled confidence in the stock's value by repurchasing 2.14 million shares for $25.1 million during the third quarter of 2025. The largest single holder remains an affiliate, Goldman Sachs Group Inc..

U.S. middle-market companies requiring $25 million to $250 million in capital form the primary borrower base. Goldman Sachs BDC, Inc. focuses on direct originations of secured debt to these U.S. middle-market companies, which is the core of its investment objective. While the general target for the U.S. middle market is large, specific investment sizes cited for Goldman Sachs BDC, Inc. range from $25 million to $75 million per transaction, often targeting companies with an EBITDA between $5 million and $75 million annually. As of September 30, 2025, the total investment portfolio at fair value and commitments reached $3,833.2 million, spread across 171 portfolio companies. The portfolio is heavily weighted toward senior protection, with 98.2% in senior secured debt, including 96.7% in first lien investments.

Private equity firms needing financing for leveraged buyouts are key partners in deal sourcing and execution. Goldman Sachs BDC, Inc. provides financing for various corporate actions, including leveraged buyouts (LBOs), growth capital, refinancing, and restructuring transactions. The firm's commitment activity in the third quarter of 2025 was robust, with new investment commitments of approximately $470.6 million across 27 companies, marking the highest level since the fourth quarter of 2021. It's worth noting that 100% of originations in that quarter were in first-lien loans, which aligns with the security sought by private equity sponsors in their debt stack.

Institutional investors, including pension funds and endowments, participate indirectly by purchasing shares of Goldman Sachs BDC, Inc. on the NYSE. These investors seek the current income and capital appreciation profile characteristic of a regulated BDC. The structure of the dividend-a base amount with a variable supplemental component-is designed to appeal to income-focused mandates typical of these large institutions. The total investment portfolio size as of September 30, 2025, was $3,833.2 million in fair value and commitments, representing the pool of assets these institutional shareholders are backing.

Here's a quick look at the investment focus supporting these borrowers:

• New investment commitments in Q3 2025: $470.6 million.
• Portfolio companies count (Sept 30, 2025): 171.
• Percentage in First Lien Debt (Sept 30, 2025): 96.7%.
• Total Portfolio Size (Fair Value + Commitments, Sept 30, 2025): $3,833.2 million.

Goldman Sachs BDC, Inc. (GSBD) - Canvas Business Model: Cost Structure

The Cost Structure for Goldman Sachs BDC, Inc. (GSBD) is heavily influenced by the expenses associated with its externally managed structure and its debt-financed investment strategy. You see these costs directly impacting net investment income, so tracking them is key to understanding true profitability.

The primary operating costs are driven by the fees paid to Goldman Sachs Asset Management, L.P. (GSAM) and the interest expense on the leverage used to fund investments. For instance, as of the quarter ended June 30, 2025, total expenses before taxes were reported at approximately $45.611 million.

Here's a look at some of the key cost components based on the latest reported figures from 2025:

Management and incentive fees paid to the external manager, GSAM, are structured based on a percentage of assets and performance hurdles. This is a fixed, recurring cost of the external management model.

• Base Management Fee: Set at 1.5% annually.
• NOI Incentive Fee: Set at 20% of Net Operating Income (NOI).
• Incentive Catch-Up Provision: Included in the structure.
• Total Return Hurdle: A 3 Year total return hurdle applies to certain incentives.

Interest expense on outstanding debt is definitely a major operating cost, directly tied to the amount of leverage Goldman Sachs BDC, Inc. uses. The net debt-to-equity ratio hovered around 1.12x as of June 30, 2025, showing consistent reliance on borrowings.

General and administrative expenses cover the day-to-day running of the business, though many administrative costs are initially paid by the Investment Adviser and subsequently reimbursed. For example, as of March 31, 2025, there were $1,168 thousand included in Accrued expenses and other liabilities that were paid by the Investment Adviser on behalf of the Company.

Costs associated with capital raising and stock repurchase programs are variable but can be significant when executed. The Board authorized a stock repurchase plan up to $75.0 million. You saw actual execution during the third quarter of 2025:

• Shares repurchased in the three months ended September 30, 2025: 2,136,943 shares.
• Total cost for these repurchases in Q3 2025: $25.1 million, including commissions.

Portfolio monitoring and valuation expenses are embedded within the management fee structure, as the Investment Adviser is responsible for sourcing, underwriting, and managing the portfolio companies. The fee structure is designed to compensate GSAM for these ongoing oversight activities.

Finance: draft 13-week cash view by Friday.

Goldman Sachs BDC, Inc. (GSBD) - Canvas Business Model: Revenue Streams

The revenue streams for Goldman Sachs BDC, Inc. are fundamentally driven by the income generated from its investment portfolio, which is heavily weighted toward debt instruments.

Total Investment Income for the third quarter ended September 30, 2025, was reported at $91.6 million.

The primary component of this income is interest earned on its debt investments. While the exact breakdown for Q3 2025 is not explicitly detailed in the immediate reports, historical data shows the dominance of this stream. For instance, in Q1 2025, Interest income was $95,746 thousand ($95.746 million), representing the vast majority of that quarter's total investment income of $96.940 million. [cite: 3, Q4 search]

The structure of the revenue streams for the third quarter of 2025 can be summarized by the key components found:

The income generated from debt investments is supplemented by other sources, including fee income and equity returns. The Payment-in-Kind (PIK) income, which represents interest accrued but not currently paid in cash, was 8.2% of the Total Investment Income for the third quarter. [cite: 6, Q3 search]

The following points detail the expected and reported revenue sources:

• Interest income from debt investments, the primary revenue source.
• Total Investment Income of $91.6 million for Q3 2025.
• Fee income from origination, structuring, and prepayment of loans.
• Dividends and capital gains from select equity investments. The portfolio was comprised of 1.5% in a combination of preferred and common stock as of September 30, 2025. [cite: 6, Q3 search]
• Net realized and unrealized gains/losses on the investment portfolio, which resulted in a net loss of $(20.6) million for the quarter. [cite: 1, Q2 search]

The impact of credit performance is reflected in the change to Net Asset Value (NAV) per share, which decreased by 2.1% sequentially to $12.75 as of September 30, 2025, driven in part by the aforementioned net realized and unrealized losses.