## Executive Summary / Key Takeaways<br><br>* Goldman Sachs BDC, Inc. (GSBD) is strategically shifting its portfolio towards higher-quality, first-lien senior secured debt, leveraging the broader Goldman Sachs platform for differentiated origination opportunities in the U.S. middle market.<br>* Recent financial performance reflects a mixed environment, with net investment income impacted by non-accruals in certain names, but underlying portfolio metrics like weighted average net debt to EBITDA and interest coverage show signs of stability or improvement.<br>* The company has recalibrated its dividend policy, introducing a base dividend of $0.32 per share supplemented by variable distributions and planned special dividends from spillover, aiming for stability and aligning distributions with core earnings power.<br>* GSBD faces competition from larger BDCs like Ares Capital Corporation (ARCC) and tech-enabled lenders like Blue Owl Capital Corporation (OBDC), but its Goldman Sachs affiliation provides unique deal flow and expertise, including leveraging engineering insights for software investments.<br>* Management anticipates an increase in M&A-driven deal volumes in 2025, presenting opportunities to deploy capital into new vintage credits and continue recycling older, lower-quality positions.<br><br>## Setting the Scene: A Middle Market Lender Forged by the Goldman Sachs Platform<br><br>Goldman Sachs BDC, Inc. ($GSBD) operates as a specialty finance company within the dynamic U.S. middle market lending landscape. Established initially in 2012 and becoming a publicly traded BDC in 2015, a pivotal moment in its history was the 2020 merger with Goldman Sachs
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