Goldman Sachs BDC sees troubled loans rise to 4.7%
Goldman Sachs BDC, a private lending fund, just reported that 4.7% of its investments are now considered "troubled"—up from 2.8% last quarter.
This means more of their loans aren't paying interest, which is a sign of stress for the fund and reflects bigger worries for business development companies as industries face new risks like AI disruption.
Goldman fund falls 3.7% to $12.17
Two new companies, security software firm 3SI Security Systems and healthcare group One GI, were added to the troubled list in the first quarter.
The fund's value dropped by 3.7%, landing at $12.17 per share, but they're still paying out a 32-cent dividend.
Most of these problem loans actually happened before the current management took over in March 2022; Goldman says it is working on fixing things and believes private credit is still strong despite market uncertainty.