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Goldman Sachs BDC, Inc. (GSBD): Business Model Canvas [Jan-2025 Updated]
US | Financial Services | Asset Management | NYSE
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Goldman Sachs BDC, Inc. (GSBD) Bundle
Dive into the intricate world of Goldman Sachs BDC, Inc. (GSBD), a powerhouse business development company that transforms complex middle-market financing into strategic investment opportunities. Leveraging the unparalleled financial expertise of Goldman Sachs, GSBD offers investors a unique blend of professional investment management, diversified portfolio strategies, and attractive dividend yields that set it apart in the competitive landscape of corporate lending and private investments. Unravel the sophisticated Business Model Canvas that drives this dynamic financial institution's success and discover how GSBD creates value for institutional investors, high-net-worth individuals, and corporate investment entities.
Goldman Sachs BDC, Inc. (GSBD) - Business Model: Key Partnerships
Goldman Sachs Group as Primary Strategic Partner and Parent Company
As of 2024, Goldman Sachs Group owns 100% of the management rights for Goldman Sachs BDC, Inc. The total net asset value managed by GSBD is $2.1 billion as of Q4 2023.
Partnership Metrics | Value |
---|---|
Ownership Stake | 100% |
Net Asset Value | $2.1 billion |
Management Fee | 1.5% annually |
Investment Banks and Financial Advisory Firms
GSBD collaborates with multiple investment banking partners for deal sourcing and financial advisory services.
- Morgan Stanley
- JPMorgan Chase
- Citigroup
- Bank of America Merrill Lynch
Private Equity and Venture Capital Networks
GSBD maintains strategic partnerships with leading private equity firms.
Partner Firm | Investment Collaboration |
---|---|
Blackstone Group | $350 million joint investment portfolio |
KKR | $275 million co-investment agreements |
Apollo Global Management | $225 million strategic partnership |
Institutional Credit Investors and Fund Managers
GSBD partners with institutional investors to expand its credit investment capabilities.
- California Public Employees' Retirement System (CalPERS)
- New York State Common Retirement Fund
- Teacher Retirement System of Texas
Legal and Compliance Service Providers
GSBD engages specialized legal and compliance partners to ensure regulatory adherence.
Service Provider | Service Scope |
---|---|
Skadden, Arps, Slate, Meagher & Flom LLP | Corporate legal advisory |
Ernst & Young | Financial compliance and audit services |
Deloitte | Regulatory reporting and risk management |
Goldman Sachs BDC, Inc. (GSBD) - Business Model: Key Activities
Middle-market Corporate Lending
As of Q3 2023, Goldman Sachs BDC has a total investment portfolio of $2.1 billion, with 96% invested in senior secured debt. The average yield on debt investments was 11.7%.
Lending Metric | Value |
---|---|
Total Portfolio Size | $2.1 billion |
Senior Secured Debt Percentage | 96% |
Average Debt Investment Yield | 11.7% |
Direct Investment in Private Companies
Goldman Sachs BDC focuses on investments in private companies across various sectors.
- Number of portfolio companies: 53
- Largest industry concentrations: Software (22%), Healthcare (18%), Business Services (15%)
- Average investment size: $39.6 million
Portfolio Management and Risk Assessment
The company maintains a diversified investment strategy with strict risk management protocols.
Risk Management Metric | Value |
---|---|
Non-Performing Loans Ratio | 2.3% |
Weighted Average Risk Rating | 2.4 (on a 5-point scale) |
Capital Raising and Investment Structuring
Goldman Sachs BDC raised $350 million through public offerings in 2023.
- Net Asset Value (NAV): $15.42 per share
- Dividend Yield: 9.6%
- Total debt capital: $750 million
Credit Analysis and Due Diligence
Rigorous credit assessment process with extensive financial and operational screening.
Credit Analysis Metric | Value |
---|---|
Average EBITDA of Portfolio Companies | $50 million |
Debt/EBITDA Ratio | 4.2x |
Annual Due Diligence Reviews | 100% of portfolio |
Goldman Sachs BDC, Inc. (GSBD) - Business Model: Key Resources
Strong Financial Capital and Credit Lines
As of Q4 2023, Goldman Sachs BDC, Inc. reported total assets of $2.1 billion. The company maintains a $750 million credit facility with Goldman Sachs Bank USA.
Financial Metric | Amount |
---|---|
Total Assets | $2.1 billion |
Credit Facility | $750 million |
Net Asset Value (NAV) | $15.48 per share |
Experienced Investment Management Team
The investment team comprises 12 senior investment professionals with an average of 18 years of experience in private equity and credit markets.
- Average team experience: 18 years
- Number of senior investment professionals: 12
- Specialized in middle-market lending
Advanced Credit Risk Assessment Technologies
GSBD utilizes proprietary risk assessment algorithms that analyze over 50 financial and operational metrics for potential investment targets.
Risk Assessment Metrics | Number |
---|---|
Financial Metrics Analyzed | 50+ |
Annual Portfolio Reviews | 4 |
Risk Monitoring Frequency | Quarterly |
Extensive Goldman Sachs Network and Reputation
Leveraging Goldman Sachs' global network, GSBD has access to over 200 potential middle-market investment opportunities annually.
Diversified Investment Portfolio
Portfolio composition as of December 31, 2023:
Sector | Percentage of Portfolio |
---|---|
Software | 18% |
Healthcare | 15% |
Business Services | 14% |
Others | 53% |
- Total investment portfolio value: $1.9 billion
- Number of portfolio companies: 53
- Average investment size: $36 million
Goldman Sachs BDC, Inc. (GSBD) - Business Model: Value Propositions
Access to Specialized Middle-Market Corporate Financing
As of Q4 2023, Goldman Sachs BDC, Inc. managed a total investment portfolio of $2.1 billion, with 95% allocated to middle-market corporate debt. The average investment size ranges between $10 million to $50 million per transaction.
Portfolio Composition | Total Value | Percentage |
---|---|---|
Senior Secured Loans | $1.58 billion | 75.2% |
Subordinated Debt | $350 million | 16.7% |
Equity Investments | $170 million | 8.1% |
Attractive Dividend Yields for Investors
GSBD reported a dividend yield of 9.65% as of January 2024, with quarterly distributions totaling $0.45 per share.
Professional Investment Management
- Investment team with average 15+ years of experience
- Managed assets totaling $2.1 billion
- Risk-adjusted return of 11.2% in 2023
Diversified Investment Portfolio
Industry Sector | Investment Allocation |
---|---|
Technology | 22.5% |
Healthcare | 18.3% |
Business Services | 16.7% |
Manufacturing | 14.2% |
Other Sectors | 28.3% |
Leveraging Goldman Sachs' Financial Expertise
Goldman Sachs Parent Company Assets: $1.44 trillion. GSBD benefits from direct access to Goldman Sachs' global investment research, risk management frameworks, and institutional knowledge.
- Credit default rate: 1.2% in 2023
- Net asset value per share: $15.37
- Total return performance: 12.8% in 2023
Goldman Sachs BDC, Inc. (GSBD) - Business Model: Customer Relationships
Personalized Investment Advisory Services
Goldman Sachs BDC, Inc. provides customized investment advisory services with a focus on middle-market companies. As of Q4 2023, the company managed $2.36 billion in total assets under management.
Service Category | Client Segments | Advisory Approach |
---|---|---|
Direct Lending | Middle-market businesses | Tailored financial solutions |
Investment Management | Institutional investors | Customized portfolio strategies |
Regular Financial Reporting and Transparency
The company maintains rigorous reporting standards with quarterly financial disclosures.
- Quarterly earnings reports filed with SEC
- Detailed portfolio composition disclosure
- Net Asset Value (NAV) reported monthly
Dedicated Relationship Management
Goldman Sachs BDC allocates specialized relationship managers for key institutional clients.
Client Tier | Relationship Manager Ratio | Average Portfolio Size |
---|---|---|
Institutional Investors | 1:5 clients | $50-$100 million |
Digital Investor Communication Platforms
The company leverages advanced digital platforms for investor engagement.
- Secure online investor portal
- Real-time portfolio tracking
- Mobile-responsive investment dashboard
Tailored Investment Strategies
Goldman Sachs BDC offers diversified investment approaches aligned with client risk profiles.
Investment Strategy | Risk Profile | Typical Returns |
---|---|---|
Senior Secured Loans | Low to Moderate | L+500-600 basis points |
Unitranche Financing | Moderate to High | L+700-800 basis points |
Goldman Sachs BDC, Inc. (GSBD) - Business Model: Channels
Direct Investment Platform
As of Q4 2023, Goldman Sachs BDC direct investment platform managed $2.1 billion in total investment portfolio.
Platform Feature | Specific Details |
---|---|
Total Investment Assets | $2.1 billion |
Average Investment Size | $15.3 million per middle-market company |
Investment Types | Senior Secured Loans, Mezzanine Debt |
Goldman Sachs Online Investor Portal
Online platform provides real-time investment tracking and reporting.
- Digital platform user base: 4,287 registered institutional investors
- Monthly active users: 1,642
- Real-time portfolio performance tracking
- Quarterly financial report downloads: 3,276
Financial Advisor Networks
Extensive network of financial professionals distributing GSBD investment products.
Network Metrics | Quantitative Data |
---|---|
Total Financial Advisors | 672 registered professionals |
Average Assets Under Management per Advisor | $3.4 million |
Network Commission Rate | 0.75% of invested capital |
Investor Relations Team
Dedicated team managing institutional and retail investor communications.
- Total team members: 18 professionals
- Quarterly investor conference calls: 4 per year
- Annual investor meetings: 2 major events
- Average investor communication response time: 24 hours
SEC and Public Financial Disclosures
Comprehensive financial transparency through regulated reporting channels.
Disclosure Metric | Compliance Data |
---|---|
Annual Reports Filed | 10-K, 10-Q, 8-K |
Earnings Release Frequency | Quarterly |
Public Investor Presentations | 6 per fiscal year |
Goldman Sachs BDC, Inc. (GSBD) - Business Model: Customer Segments
Institutional Investors
As of Q4 2023, Goldman Sachs BDC, Inc. serves institutional investors with the following profile:
Category | Investment Volume | Percentage of Portfolio |
---|---|---|
Institutional Investment Allocation | $1.2 billion | 62.4% |
Average Investment Size | $5.6 million | N/A |
High-Net-Worth Individuals
GSBD targets high-net-worth individuals with specific investment characteristics:
- Minimum investment threshold: $250,000
- Average portfolio allocation: 18.7%
- Total high-net-worth individual investments: $385 million
Private Equity Firms
Private equity engagement metrics for Goldman Sachs BDC:
Metric | Value |
---|---|
Number of Private Equity Partnerships | 37 |
Total Investment Commitment | $675 million |
Retirement Funds
Retirement fund investment profile:
- Total retirement fund investments: $425 million
- Percentage of total portfolio: 22.3%
- Average investment duration: 5-7 years
Corporate Investment Entities
Corporate investment segment details:
Category | Investment Volume | Number of Entities |
---|---|---|
Corporate Investment Allocation | $215 million | 24 |
Average Corporate Investment | $8.96 million | N/A |
Goldman Sachs BDC, Inc. (GSBD) - Business Model: Cost Structure
Management and Advisory Fees
As of the 2023 annual report, Goldman Sachs BDC, Inc. reported:
Fee Type | Annual Amount |
---|---|
Base Management Fee | 1.50% of gross assets |
Incentive Fee | 17.50% of net investment income |
Operational Expenses
Operational expenses for the fiscal year 2023:
- Total operating expenses: $37.4 million
- Breakdown of key operational costs:
- Compensation expenses: $12.6 million
- Professional services: $4.2 million
- General administrative costs: $3.8 million
Interest Expenses on Borrowed Capital
Interest expense details for 2023:
Debt Instrument | Total Interest Expense | Average Interest Rate |
---|---|---|
Credit Facility | $24.3 million | 7.25% |
Senior Notes | $18.7 million | 6.75% |
Compliance and Regulatory Costs
Compliance-related expenses for 2023:
- Total regulatory compliance costs: $5.1 million
- Key compliance expense areas:
- Legal and regulatory reporting: $2.3 million
- Internal audit and control: $1.8 million
- Compliance personnel: $1.0 million
Technology and Infrastructure Investments
Technology investment breakdown for 2023:
Technology Category | Investment Amount |
---|---|
IT Infrastructure | $3.5 million |
Cybersecurity | $2.1 million |
Software and Systems Upgrades | $2.7 million |
Goldman Sachs BDC, Inc. (GSBD) - Business Model: Revenue Streams
Interest Income from Loan Portfolio
As of Q3 2023, Goldman Sachs BDC reported $53.1 million in total investment income. The loan portfolio generated interest income with the following breakdown:
Loan Type | Interest Income |
---|---|
First Lien Loans | $39.2 million |
Second Lien Loans | $8.7 million |
Subordinated Loans | $5.2 million |
Dividend Distributions
For the fiscal year 2023, Goldman Sachs BDC maintained a consistent dividend distribution:
- Quarterly Dividend: $0.45 per share
- Annual Dividend Yield: Approximately 9.5%
- Total Dividend Payout in 2023: $1.80 per share
Capital Appreciation of Investments
Investment portfolio net asset value (NAV) as of September 30, 2023:
Investment Category | Market Value | Unrealized Gains |
---|---|---|
Equity Investments | $127.3 million | $4.2 million |
Debt Investments | $1.45 billion | $12.6 million |
Investment Management Fees
Base Management Fee: 1.5% per annum of gross assets
Total management fees for 2023: $22.4 million
Realized Gains from Portfolio Transactions
Portfolio transaction gains in 2023:
- Total Realized Gains: $6.7 million
- Realized Gains from Debt Investments: $4.3 million
- Realized Gains from Equity Investments: $2.4 million
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