Goldman Sachs Private Credit Assets Soar, Net Investment Income Jumps

TL;DR

**Goldman Sachs Private Credit is aggressively expanding its portfolio and leveraging up, but watch out for declining EPS and foreign currency risks.**

AI Summary

Goldman Sachs Private Credit Corp. reported a significant increase in total assets to $10.16 billion as of June 30, 2025, up from $7.95 billion at December 31, 2024, driven by substantial investment growth. Total investments at fair value rose to $9.63 billion from $7.27 billion over the same period. The company's net investment income for the six months ended June 30, 2025, surged to $291.62 million, a 140.8% increase from $121.10 million in the prior year period. However, net realized and unrealized losses widened to $35.99 million for the six months ended June 30, 2025, compared to a $12.02 million gain in the same period of 2024, primarily due to foreign currency translations and non-controlled affiliated investments. Basic and diluted earnings per share decreased to $1.01 for the six months ended June 30, 2025, from $1.37 in the prior year, despite the rise in net investment income. The company issued $2.24 billion in common shares and incurred $2.72 billion in debt (net of issuance costs) as of June 30, 2025, reflecting aggressive capital raising and deployment. A proposed merger with Goldman Sachs Middle Market Lending Corp. II (MMLC II) was announced on July 11, 2025, which is expected to further expand the company's portfolio and market presence. The company also saw a significant increase in interest and other debt expenses, reaching $84.13 million for the six months ended June 30, 2025, up from $23.33 million in the prior year, reflecting increased leverage.

Why It Matters

This filing reveals Goldman Sachs Private Credit Corp.'s aggressive expansion, with a 27.7% increase in total assets and a 140.8% jump in net investment income. For investors, this signals strong growth in private credit exposure, but the decline in EPS and widening unrealized losses, particularly from foreign currency, warrant close attention. The proposed merger with MMLC II could significantly alter the competitive landscape in middle-market lending, creating a larger, more formidable player. Employees may see increased opportunities within a larger combined entity, while customers could benefit from a broader range of financing solutions. The broader market will watch how this growth impacts liquidity and risk in the private credit sector, especially given rising interest expenses.

Risk Assessment

Risk Level: medium — The risk level is medium due to the significant increase in debt to $2.72 billion from $2.58 billion, leading to a substantial rise in interest and other debt expenses to $84.13 million for the six months ended June 30, 2025, up from $23.33 million. Additionally, net change in unrealized depreciation from foreign currency translations was a considerable $(30.70) million for the six months ended June 30, 2025, indicating exposure to currency volatility.

Analyst Insight

Investors should closely monitor the integration of the MMLC II merger for potential synergies and operational risks. Evaluate the company's ability to manage its increased debt load and rising interest expenses in a potentially volatile interest rate environment. Consider the impact of foreign currency fluctuations on future earnings.

Financial Highlights

debt To Equity

0.38

revenue

$401,773,000

operating Margin

N/A

total Assets

$10,157,169,000

total Debt

$2,722,573,000

net Income

-$36,205,000

eps

$1.01

gross Margin

N/A

cash Position

$186,392,000

revenue Growth

+155.5%

Revenue Breakdown

Key Numbers

• $10.16B — Total Assets (Increased from $7.95B at Dec 31, 2024, reflecting significant growth.)
• $9.63B — Total Investments at Fair Value (Increased from $7.27B at Dec 31, 2024, indicating substantial portfolio expansion.)
• $291.62M — Net Investment Income (6 months) (Increased 140.8% from $121.10M in the prior year period.)
• $1.01 — Basic and Diluted EPS (6 months) (Decreased from $1.37 in the prior year, despite higher net investment income.)
• $35.99M — Net Realized & Unrealized Losses (6 months) (Widened from a $12.02M gain in the prior year, primarily due to foreign currency.)
• $2.24B — Proceeds from Common Share Issuance (6 months) (Reflects significant capital raising efforts.)
• $2.72B — Debt (net of issuance costs) (Increased from $2.58B at Dec 31, 2024, indicating higher leverage.)
• $84.13M — Interest and Other Debt Expenses (6 months) (Increased from $23.33M in the prior year, reflecting higher debt costs.)
• 279,279,667 — Common Shares Outstanding (Increased from 194,480,997 at Dec 31, 2024, indicating dilution from share issuances.)
• $25.07 — Net Asset Value per Common Share (Slightly decreased from $25.22 at Dec 31, 2024.)

Key Players & Entities

• Goldman Sachs Private Credit Corp. (company) — Registrant in the 10-Q filing
• Goldman Sachs Middle Market Lending Corp. II (company) — Merging with Goldman Sachs Private Credit Corp.
• Goldman Sachs Asset Management, L.P. (company) — Investment Adviser and party to the merger agreement
• $10.16 billion (dollar_amount) — Total assets as of June 30, 2025
• $7.95 billion (dollar_amount) — Total assets as of December 31, 2024
• $9.63 billion (dollar_amount) — Total investments at fair value as of June 30, 2025
• $7.27 billion (dollar_amount) — Total investments at fair value as of December 31, 2024
• $291.62 million (dollar_amount) — Net investment income for the six months ended June 30, 2025
• $121.10 million (dollar_amount) — Net investment income for the six months ended June 30, 2024
• $35.99 million (dollar_amount) — Net realized and unrealized losses for the six months ended June 30, 2025

FAQ

Risk Factors

• Widening Net Realized and Unrealized Losses [high — financial]: The company experienced net realized and unrealized losses of $35.99 million for the six months ended June 30, 2025, a significant shift from a $12.02 million gain in the prior year period. This widening loss is primarily attributed to foreign currency translations and performance of non-controlled affiliated investments.
• Increased Interest Expense Due to Higher Leverage [high — financial]: Interest and other debt expenses surged to $84.13 million for the six months ended June 30, 2025, from $23.33 million in the prior year. This 261.4% increase is a direct consequence of the company's aggressive debt issuance, totaling $2.72 billion net of issuance costs.
• Foreign Currency Fluctuation Risk [medium — market]: Foreign currency translations were cited as a primary driver for the increase in net realized and unrealized losses. As the company's investments and operations may involve international entities, adverse currency movements can negatively impact financial results.
• Dilution from Common Share Issuance [medium — financial]: The company issued $2.24 billion in common shares, increasing shares outstanding from 194,480,997 to 279,279,667. This substantial dilution led to a decrease in basic and diluted EPS to $1.01 from $1.37, despite higher net investment income.
• Performance of Non-Controlled Affiliated Investments [medium — market]: The results of non-controlled affiliated investments contributed to both increased investment income and the widening net realized and unrealized losses. The volatility or underperformance of these specific investments poses a risk to overall profitability.
• Integration Risk from Proposed Merger [medium — operational]: The announced merger with Goldman Sachs Middle Market Lending Corp. II (MMLC II) presents integration risks. Successful execution of the merger is crucial for realizing expected portfolio expansion and market presence benefits, with potential operational challenges during the transition.

Industry Context

Goldman Sachs Private Credit Corp. operates within the dynamic private credit market, characterized by increasing demand for flexible financing solutions from middle-market companies. The industry is competitive, with numerous funds and financial institutions vying for deal flow. Trends include a focus on direct lending, opportunistic credit strategies, and the growing importance of specialized sectors.

Regulatory Implications

As a registered investment company, Goldman Sachs Private Credit Corp. is subject to regulations under the Investment Company Act of 1940. Compliance with reporting requirements, capital adequacy, and investor protection rules are paramount. Changes in accounting standards or regulatory interpretations could impact financial reporting and operational flexibility.

What Investors Should Do

1. Monitor the impact of increased leverage on profitability and risk.
2. Assess the success of the proposed merger with MMLC II.
3. Evaluate the drivers of net realized and unrealized losses.
4. Analyze the sustainability of investment income growth.

Key Dates

• 2025-06-30: Quarter End - Consolidated Statements of Assets and Liabilities — Reflects total assets of $10.16 billion and total investments of $9.63 billion, showing significant portfolio growth.
• 2025-06-30: Six Months Ended - Consolidated Statements of Operations — Net investment income surged to $291.62 million, but net realized/unrealized losses widened to $35.99 million.
• 2025-07-11: Announcement of Proposed Merger with MMLC II — Indicates strategic expansion and potential for increased scale and market presence.

Glossary

Non-controlled/non-affiliated investments

Investments in companies where Goldman Sachs Private Credit Corp. does not have control or significant influence, and which are not related entities. (This is the largest component of the company's investment portfolio, and its performance directly impacts overall financial results.)

Non-controlled affiliated investments

Investments in entities where the company has an affiliation but not control, meaning it has some level of influence but not the power to direct the investee's operating and financial policies. (These investments contributed to both income and losses, highlighting their impact on the company's profitability and risk profile.)

Distributable earnings (loss)

The cumulative net income or loss of the company that is available for distribution to shareholders. (A negative distributable earnings balance of ($36.2 million) indicates that the company has incurred cumulative losses that have not yet been offset by future earnings.)

Net asset value per common share

The value of a company's assets minus its liabilities, divided by the number of outstanding common shares. (This metric indicates the per-share value of the company's holdings and showed a slight decrease from $25.22 to $25.07.)

Year-Over-Year Comparison

Compared to the prior year period, Goldman Sachs Private Credit Corp. has seen a dramatic increase in its asset base, with total assets growing significantly. Investment income has also surged by over 150%, driven by expanded lending activities. However, this growth has been accompanied by a substantial rise in interest expenses due to increased leverage and a concerning shift from investment gains to significant realized and unrealized losses, leading to a decrease in earnings per share despite higher top-line income.

Key Financial Figures

• $0.001 — he registrant's common stock, par value $0.001 per share, outstanding as of August 12,

Filing Documents

• ck0001920145-20250630.htm (10-Q) — 15231KB
• ck0001920145-ex31_1.htm (EX-31.1) — 26KB
• ck0001920145-ex31_2.htm (EX-31.2) — 26KB
• ck0001920145-ex31_3.htm (EX-31.3) — 27KB
• ck0001920145-ex32_1.htm (EX-32.1) — 6KB
• ck0001920145-ex32_2.htm (EX-32.2) — 6KB
• ck0001920145-ex32_3.htm (EX-32.3) — 7KB
• 0000950170-25-107338.txt ( ) — 46399KB
• ck0001920145-20250630.xsd (EX-101.SCH) — 2497KB
• ck0001920145-20250630_htm.xml (XML) — 13973KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 4 Consolidated Statements of Assets and Liabilities 4 Consolidated Statements of Operations 5 Consolidated Statements of Changes in Net Assets 6 Consolidated Statements of Cash Flows 7 Consolidated Schedules of Investments 8 Notes to the Consolidated Financial Statements 37 ITEM 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 63 ITEM 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 79 ITEM 4.

Controls and Procedures

Controls and Procedures 80 PART II. OTHER INFORMATION 80 ITEM 1.

Legal Proceedings

Legal Proceedings 80 ITEM 1A.

Risk Factors

Risk Factors 80 ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 84 ITEM 3. Defaults Upon Senior Securities 85 ITEM 4. Mine Safety Disclosures 85 ITEM 5. Other Information 85 ITEM 6. Exhibits 86

SIGNATURES

SIGNATURES 88 1 Table of Contents CAUTIONARY STATEMENT REGARDIN G FORWARD-LOOKING STATEMENTS This report contains forward-looking statements that involve substantial risks and uncertainties. You can identify these statements by the use of forward-looking terminology such as "may," "will," "should," "expect," "anticipate," "project," "target," "estimate," "intend," "continue" or "believe" or the negatives of, or other variations on, these terms or comparable terminology. You should read statements that contain these words carefully because they discuss our plans, strategies, prospects and expectations concerning our business, operating results, financial condition and other similar matters. We believe that it is important to communicate our future expectations to our investors. Our forward-looking statements include information in this report regarding general domestic and global economic conditions, our future financing plans, our ability to operate as a business development company ("BDC") and the expected performance of, and the yield on, our portfolio companies. There may be events in the future, however, that we are not able to predict accurately or control. The factors listed under "Risk Factors" in this quarterly report on Form 10-Q and in our annual report on Form 10-K for the year ended December 31, 2024, as well as any cautionary language in this report, provide examples of risks, uncertainties and events that may cause our actual results to differ materially from the expectations we describe in our forward-looking statements. The occurrence of the events described in these risk factors and elsewhere in this report could have a material adverse effect on our business, results of operations and financial position. Any forward-looking statement made by us in this report speaks only as of the date of this report. Factors or events that could cause our actual results to differ from our forward-looking statements may emerge from time to time, and it is

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS Goldman Sachs Private Credit Corp. Consolidated Statements of Assets and Liabilities (in thousands, except share and per share amounts) June 30, December 31, 2025 (Unaudited) 2024 Assets Investments, at fair value Non-controlled/non-affiliated investments (cost of $ 9,591,382 and $ 7,234,752 ) $ 9,587,043 $ 7,226,585 Non-controlled affiliated investments (cost of $ 53,180 and $ 51,170 ) 43,901 47,230 Total investments, at fair value (cost of $ 9,644,562 and $ 7,285,922 ) $ 9,630,944 $ 7,273,815 Investments in affiliated money market fund (cost of $ 233,261 and $ 444,718 ) 233,261 444,718 Cash 186,392 120,377 Interest and dividends receivable 48,760 40,396 Deferred financing costs 38,613 29,448 Receivable for investments sold 7,950 40,859 Receivable from investment adviser 4,422 3,074 Deferred offering costs 785 965 Other assets 6,042 599 Total assets $ 10,157,169 $ 7,954,251 Liabilities Debt (net of debt issuance costs of $ 12,832 and $ — ) $ 2,722,573 $ 2,576,893 Payable for investments purchased 148,765 349,328 Distribution payable 87,683 64,446 Payable for share repurchases 140,260 25,582 Interest and other debt expenses payable 26,266 15,335 Management fees payable 14,498 5,067 Incentive fees based on income payable 9,978 7,039 Accrued expenses and other liabilities 4,439 4,857 Total liabilities $ 3,154,462 $ 3,048,547 Commitments and contingencies (Note 7) Net assets Preferred stock, par value $ 0.001 per share ( 1,000,000 shares authorized, no shares issued and outstanding) $ — $ — Common stock, par value $ 0.001 per share ( 1,000,000,000 shares authorized, 279,279,667 and 194,480,997 common shares issued and outstanding as of June 30, 2025 and December 31, 2024) 279 194 Paid-in capital in excess of par 7,038,633 4,907,427 Distributable earn

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