Shares of Goldman Sachs BDC, Inc. dropped 6.6% following the earnings release, reflecting investor disappointment with ongoing credit mark-to-market volatility concentrated in legacy assets and cautious commentary around persistent market uncertainties affecting portfolio valuation.

• Approximately 42% of the portfolio comprises legacy positions, which accounted for 72% of losses and over 99.5% of nonaccruals this quarter; two additional legacy names were moved to nonaccrual status.
• The newer 58% of the portfolio, originating under the current underwriting framework, showed loan performance in line with expectations with low losses and minimal nonaccrual exposure.
• Mark-to-market declines primarily reflect wider credit spreads and market demand for higher returns, not necessarily borrower credit deterioration.
• Market headwinds include geopolitical uncertainty, AI-sector disruptions, and a softer M&A environment particularly impacting middle-market financing activity.
• The company emphasized its rigorous, multi-tier valuation process involving independent internal and external oversight to ensure fair value measurement amid volatility.