Goldman Sachs BDC, Inc.

Good morning, and thank you for joining us. My name is John Silas, a member of the Investor Relations Team for Goldman Sachs BDC, Inc., and I would like to welcome everyone to the Goldman Sachs BDC, Inc. First Quarter 2026 Earnings Conference Call. Please note that all participants will be in listen-only mode until the end of the call when we will open the line for questions. Before we begin today's call, I would like to remind our listeners that today's remarks may include forward-looking statements. These statements represent the company's belief regarding future events that, by their nature, are uncertain and outside of the company's control. The company's actual results and financial condition may differ, possibly materially, from what is indicated in those forward-looking statements as a result of a number of factors, including those described from time to time in the company's SEC filings. This audio cast is copyrighted material of Goldman Sachs BDC, Inc., and may not be duplicated, reproduced, or rebroadcasted without our consent. Yesterday after the market closed, the company issued an earnings press release and posted a supplemental earnings presentation, both of which can be found on the homepage of our website at www.goldmansaxbdc.com under the Investor Resources section and which include reconciliations of non-GAAP measures to the most directly comparable GATT measures. These documents should be reviewed in conjunction with the company's quarterly report on Form 10Q filed yesterday with the SEC. This conference call is being recorded today, Friday, May 8, 2026, for replay purposes. I'll now turn the call over to Vivek Antwal, co-CEO of Goldman Sachs BDC, Inc.

Thank you, John. Good morning, everyone, and thank you for joining us for our first quarter earnings conference call. I am here today with David Miller, our co-chief executive officer, Tucker Green, our president and chief operating officer, and Stan Matuszewski, our chief financial officer. I would like to begin by providing important context on the composition of our portfolio, followed by sharing perspective on the current macro backdrop and our rigorous approach to valuation, particularly around our commitment to transparent mark-to-market accounting. I'll then highlight our perspective on why we continue to see private credit as a highly attractive asset class and why our GS platform is uniquely positioned to thrive in the current investment landscape, particularly over time as we transition away from the legacy portfolio. I'll then turn the call over to David and Tucker, who will dive into our first quarter results, portfolio activity, and performance before handing it off to Stan to take us through our financial results. And finally... we'll open the line for Q&A. As we have discussed on prior calls, since GSBD's integration into the broader direct lending platform in 2022, we have been on a deliberate path to leverage the differentiated sourcing, underwriting, and portfolio management oversight provided by access to the full Goldman Sachs private credit ecosystem where we have a 30-year track record. What you're seeing in our results today is the natural transition of our balance sheet. we are moving out of older positions from the legacy setup and into new opportunities that benefit from our enhanced sourcing and deeper origination funnel. Currently, about 58% of our portfolio consists of these more recent originations, while the remaining 42% represents older positions. The results of this strategic shift are clear. The 58% of the portfolio originated under our current underwriting capabilities is performing in line with expectations. In fact, we have seen low losses and only one name representing less than 0.5% of our total non-recrual at cost. While we have seen some modest unrealized moves here, we believe those are primarily a reflection of broader market spread widening, not a sign of credit deterioration. This gives us immense confidence in our current credit selection process. As we've discussed, the 42% of the book, consisting of legacy positions, is where we see the bulk of our current credit volatility, accounting for roughly 72% of losses this quarter and over 99.5% of our total non-accruals at cost. We've added two of these names to non-accrual status this quarter, 1GI LLC and 3SI Security Systems, Inc., which we view as idiosyncratic situations that we have been monitoring closely. Our internal workout teams are deeply engaged with these borrowers to maximize recovery. This brings me to a critical distinction that we believe is essential for our investors to understand, the difference between mark-to-market fluctuations and actual credit impairment. When the market price of risk increases, as evidenced by today's widening credit spreads, the mark-to-market value of existing loans naturally declines. This decline is not a reflection of the borrower's ability to pay, but rather a result of current market demand for higher returns on the same level of credit risk. If the credit remains sound and ultimately repays at par, the investor recovers the full principal amount, regardless of any interim price volatility through the life of the loan. On the other hand, true credit impairment occurs when a borrower's financial condition deteriorates to where they can no longer meet their obligations, resulting in a permanent loss of capital. This distinction is especially important in periods of heightened volatility, when mark-to-market valuations will fluctuate to reflect market sentiment, but underlying credit risk and borrower solvency remain stable. We view the losses we are seeing in the post-integration portfolio as the former type, mark-to-market in nature, while the credit impairment we are addressing is concentrated in the legacy portfolio. Looking back on the first quarter, The extent to which the market was affected by global geopolitical uncertainty, AI disruption across the software sector, and a softer-than-anticipated M&A landscape is clear. The return of M&A activity in the second half of 2025 resulted in an increased number of deal closings in the first quarter of 2026. However, volumes were heavily skewed toward a small number of large-cap deals with sponsor activity continuing to lag and remaining below 10-year averages. Despite the going backlog, the risk-off sentiment across the market in Q1 drove the total U.S. private equity deal value down to the lowest since Q2 2025 levels. Although a more stable rate environment could help over time, any immediate recovery, particularly in the middle market, remains uncertain. In times like these, when market uncertainty leads to increased volatility, our financial position, including valuation, remains our top priority. GSBD's quarterly valuation process, which aligns with our broader BDC complex, is conducted by three independent sources. The private credit investing team, our valuation oversight group, which is independent of the investment decision-making process, and independent third-party valuation advisors, all of whom are subject to oversight by our independent board of directors. This multi-step approach is intended to provide robust checks and balances, and to support fair value determinations that are consistent, well-documented, and aligned with applicable regulatory standards. As we look across the landscape of early 2026, we believe the fundamental health of the private credit industry remains strong. Despite recent headlines, the data tells a story of continued resilience amidst some manager performance dispersion that is expected to continue. Default rates across both public and private credit markets remain at relatively low levels. To put this in perspective, the payment default rate for broadly syndicated loans in the public market stood at just 1.44% as of March 2026. This is well below the 10.8% peak default rate we witnessed during the global financial crisis. Performing senior secure credit portfolios benefit from fixed maturities and change of control provisions that generate par repayments and natural liquidity. further underscoring the structural advantage from a risk perspective of holding senior debt. We now expect to have the ability to reinvest proceeds from recent exits at wider spreads and more attractive risk-adjusted levels in the current environment. We would also note that recent media coverage of private credit has at times lacked necessary nuances. There is a tendency to conflate distinct segments of the credit markets, creating the impression of a broad quote, private credit problem, unquote, where in reality, stress is focused on certain pockets of the market. Looking ahead, if economic conditions were to soften, we would naturally expect to see an increase in non-recrual rates and a greater performance divergence among managers. We believe the best way to prepare for such a shift is through the same disciplined underwriting culture and rigorous investment process that have guided our platform for 30 years. In periods of heightened market uncertainty, these principles are not just our foundation, they are our greatest competitive advantage. Another key focus for us has been the deliberate reduction of annualized recovering revenue ARR loans within our portfolio relative to the legacy set-up. Within GSBD, we have successfully lowered our ARR exposure from nearly 39% of the portfolio during Q3 2022 at fair value to under 10% today. This shift is highly intentional and aligns with broader market trends, which we have highlighted earlier. While ARR lending served a purpose during the rapid growth cycles of previous years, the current environment demands a more rigorous approach. We are seeing a clear market-wide rotation away from revenue-based metrics in favor of traditional cash flow supported structures. We are proactively managing our legacy ARR positions through strategic exits or by facilitating conversions to EBITDA-based loans as these companies mature and are very selective in underwriting new ARR deals that are brought to market. By prioritizing these cash flow-centric assets, we are helping to ensure that that our portfolio remains resilient and well positioned to deliver durable value to our investors. With heightened focus surrounding the software industry in recent months, our framework has continued to evolve as the landscape develops. While we are not immune to the fears of AI disrupting the software landscape, we remain confident in our ability to thoughtfully assess and help mitigate AI-related risks across both our current portfolio and new investment opportunities. With that, let me turn it over to my co-CEO, David.

Thanks, Vivek. I'd now like to turn to our first quarter results. Our net investment income per share for the quarter was $0.22, and net asset value per share was $12.17 at the quarter end, down approximately 3.7% from the fourth quarter, driven primarily by increased and unrealized losses. NII this quarter was also impacted by higher incentive fee accrual under our shareholder-friendly fee structure. As a reminder, GSBD's incentive fee is subject to a three-year total return look back, which ties our advisors' compensation directly to the cumulative economic value delivered to shareholders, including both income and the impact of gains and losses, rather than income alone. While this weighed on reported NI in the quarter, It underscores the strong alignment between Goldman Sachs and our shareholders. The Board declared a second quarter 2026 base dividend of $0.32 per share, payable to shareholders of record as of June 30, 2026. We ended the quarter with a net debt-to-equit ratio of 1.37 times as of March 31, 2026, as compared to 1.27 times as of December 31, 2025. We have maintained a conservative liability profile with no near-term unsecured maturities and a deliberately laddered bond maturity schedule. Our liquidity is underpinned by a diversified, committed, revolving credit facility across 15 bank lenders, structured with no mark-to-market exposure. Market confidence in our platform remains durable, as evidenced by the continued strong oversubscription on our recent bond issuances. We consistently look to enforce proactive capital management to ensure we remain well positioned to execute our strategy regardless of broader market volatility. During the quarter, we made new commitments of approximately $46.5 million across 17 portfolio companies, comprised of six new and 11 existing portfolio companies. 91.6% of our originations during the quarter were in first lien loans, which reflects our bias to investments that are at the top of the capital structure. Turning to portfolio composition, as of March 31, 2026, total investments in our portfolio were $3.23 billion at fair value, comprised of 98.7% in senior secured loans, 1% in a combination of preferred and common stock, 0.3% of unsecured debt, and a negligible amount in warrants. With that, let me turn it over to Tucker to discuss repayments, fundamentals, and credit quality.