West Bay BDC Assets Double to $209.8M, Investment Income Surges

TL;DR

**West Bay BDC is aggressively expanding its portfolio and leveraging up, signaling strong growth but also higher risk for investors.**

AI Summary

West Bay BDC LLC reported a significant increase in total assets to $209.79 million as of June 30, 2025, up from $107.94 million at December 31, 2024, primarily driven by a substantial increase in investments and cash. The company's investments at fair value grew from $34.10 million to $148.94 million for non-controlled/non-affiliated investments, and cash surged from $2.05 million to $56.61 million. Total investment income for the six months ended June 30, 2025, was $4.40 million, a considerable improvement from zero in the prior year's comparable period. Net investment income reached $0.85 million for the six months ended June 30, 2025, compared to a net investment loss of $1.14 million for the period from May 1, 2024 (inception) to June 30, 2024. However, the company experienced a net change in unrealized depreciation of $0.29 million on non-controlled/non-affiliated investments for the six months ended June 30, 2025. Debt increased significantly from $45.00 million to $122.50 million, reflecting increased leverage to fund investments. Common units outstanding increased to 4,927,640 from 3,589,962, and net asset value per unit slightly rose to $17.46 from $17.36.

Why It Matters

West Bay BDC LLC's substantial asset growth and shift to positive net investment income signal a maturing BDC actively deploying capital, which is crucial for investors seeking income-generating opportunities in private credit. The significant increase in debt to $122.5 million indicates a more aggressive financing strategy, potentially boosting returns but also increasing risk. For employees, this growth suggests stability and potential expansion. Customers of West Bay's portfolio companies, which span diverse sectors like Air Freight & Logistics and Software, benefit from continued access to capital. In a competitive market, West Bay's ability to scale its investment portfolio and generate income positions it as a more formidable player, especially with its affiliation with Goldman Sachs Asset Management, L.P.

Risk Assessment

Risk Level: medium — The risk level is medium due to the significant increase in debt from $45.00 million to $122.50 million, which increases financial leverage and interest expense, making the company more sensitive to interest rate fluctuations. Additionally, the net change in unrealized depreciation of $0.29 million on non-controlled/non-affiliated investments indicates potential valuation challenges within its portfolio.

Analyst Insight

Investors should monitor West Bay BDC LLC's future filings closely for trends in net asset value per unit and the quality of its loan portfolio, especially given the increased leverage. Evaluate the performance of its underlying investments and the impact of rising interest rates on its debt obligations and portfolio companies' ability to repay loans.

Financial Highlights

debt To Equity

1.43

revenue

$4.40M

operating Margin

N/A

total Assets

$209.79M

total Debt

$122.50M

net Income

$0.85M

eps

N/A

gross Margin

N/A

cash Position

$56.61M

revenue Growth

N/A

Revenue Breakdown

Key Numbers

• $209.79M — Total Assets (Increased from $107.94M at Dec 31, 2024, representing a 94.36% growth.)
• $148.94M — Non-controlled/non-affiliated investments at fair value (Increased from $34.10M at Dec 31, 2024, indicating significant portfolio expansion.)
• $56.61M — Cash (Increased from $2.05M at Dec 31, 2024, providing substantial liquidity.)
• $4.40M — Total Investment Income (For the six months ended June 30, 2025, up from $0 in the prior year period.)
• $0.85M — Net Investment Income (For the six months ended June 30, 2025, a turnaround from a $1.14M loss.)
• $122.50M — Debt (Increased from $45.00M at Dec 31, 2024, reflecting higher leverage.)
• $17.46 — Net Asset Value per unit (Slightly increased from $17.36 at Dec 31, 2024.)
• 4,927,640 — Common units outstanding (Increased from 3,589,962 at Dec 31, 2024, indicating capital raises.)
• $0.29M — Net change in unrealized depreciation (On non-controlled/non-affiliated investments for the six months ended June 30, 2025.)

Key Players & Entities

• West Bay BDC LLC (company) — Registrant
• Goldman Sachs Asset Management, L.P. (company) — Investment Adviser
• $209,786 (dollar_amount) — Total assets as of June 30, 2025
• $107,938 (dollar_amount) — Total assets as of December 31, 2024
• $148,942 (dollar_amount) — Investments at fair value (non-controlled/non-affiliated) as of June 30, 2025
• $34,104 (dollar_amount) — Investments at fair value (non-controlled/non-affiliated) as of December 31, 2024
• $56,613 (dollar_amount) — Cash as of June 30, 2025
• $2,054 (dollar_amount) — Cash as of December 31, 2024
• $122,500 (dollar_amount) — Debt as of June 30, 2025
• $45,000 (dollar_amount) — Debt as of December 31, 2024

FAQ

Risk Factors

• Increased Leverage and Debt [high — financial]: The company's debt has significantly increased from $45.00 million at December 31, 2024, to $122.50 million as of June 30, 2025. This substantial rise in leverage is used to fund investments but exposes the company to higher financial risk and interest rate sensitivity.
• Investment Value Fluctuations [medium — market]: The company experienced a net change in unrealized depreciation of $0.29 million on non-controlled/non-affiliated investments for the six months ended June 30, 2025. This highlights the inherent market risk associated with the fair value of its investment portfolio.
• Dependence on Investment Performance [medium — operational]: The company's financial performance is heavily reliant on the income generated and capital appreciation of its investments. A downturn in investment performance could negatively impact net investment income and overall profitability.
• BDC Regulatory Environment [medium — regulatory]: As a Business Development Company (BDC), West Bay BDC LLC is subject to specific regulatory requirements, including those related to asset coverage and distributions. Non-compliance could lead to penalties or operational restrictions.
• Liquidity and Cash Management [medium — financial]: While cash has increased significantly to $56.61 million, the substantial growth in assets and debt requires careful management to ensure sufficient liquidity for operations, debt servicing, and potential investment opportunities.

Industry Context

West Bay BDC LLC operates within the Business Development Company (BDC) sector, which typically provides capital to small and medium-sized U.S. businesses. The industry is characterized by its role in financing companies that may not have access to traditional bank loans or public markets. BDCs often employ leverage to enhance returns, making them sensitive to interest rate changes and market volatility. The current environment may see increased demand for alternative financing solutions.

Regulatory Implications

As a BDC, West Bay BDC LLC is subject to regulations designed to protect investors, such as asset coverage requirements. Significant increases in debt and the need to maintain adequate capital can create compliance challenges. The company must also adhere to rules regarding income distribution to maintain its status and avoid excise taxes.

What Investors Should Do

1. Monitor debt levels and interest coverage ratios.
2. Analyze the performance and diversification of the investment portfolio.
3. Evaluate the sustainability of net investment income.
4. Assess the impact of increased common units outstanding.

Key Dates

• 2025-06-30: Quarter End and Period End — Represents the reporting date for the current 10-Q, showing significant growth in assets, investments, and debt compared to the prior period.
• 2025-06-30: Six Months Ended — Period for which investment income and net investment income are reported, showing a turnaround from a loss to a profit.
• 2024-12-31: Prior Year End — Benchmark for comparison, showing a much smaller asset base and debt level.
• 2024-05-01: Company Inception — Marks the beginning of the company's operational history, relevant for comparing performance from inception.

Glossary

BDC

Business Development Company. A type of closed-end investment company that invests in small and medium-sized businesses and financially troubled companies. (West Bay BDC LLC operates under this structure, implying specific regulatory and investment strategies.)

Non-controlled/non-affiliated investments

Investments in companies where West Bay BDC LLC does not have control or significant influence, typically valued at fair value. (This is the largest asset category for West Bay BDC LLC, driving investment income and potential unrealized gains/losses.)

Net investment income (loss)

The difference between total investment income and total expenses, excluding realized and unrealized gains or losses on investments. (Key profitability metric for BDCs, indicating the income generated from core lending and investment activities.)

Net change in unrealized appreciation (depreciation)

The change in the fair value of investments that have not been sold, reflecting market fluctuations. (Indicates the impact of market volatility on the company's investment portfolio value.)

Fair value

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. (The primary valuation method for West Bay BDC LLC's investments.)

Leverage

The use of borrowed money to increase the potential return on an investment. In this context, it refers to the company's debt. (West Bay BDC LLC has significantly increased its leverage to fund its investment growth.)

Year-Over-Year Comparison

Compared to the prior period (May 1, 2024 - June 30, 2024), West Bay BDC LLC has demonstrated substantial growth. Total assets have surged from $107.94 million to $209.79 million, primarily due to a significant expansion in non-controlled/non-affiliated investments and a dramatic increase in cash. Total investment income has moved from $0 to $4.40 million, and net investment income has turned positive at $0.85 million, a significant improvement from a $1.14 million loss. However, this growth has been financed by a considerable increase in debt from $45.00 million to $122.50 million, indicating higher leverage. A new risk factor has emerged with $0.29 million in net unrealized depreciation on investments.

Filing Documents

• ck0002020354-20250630.htm (10-Q) — 2963KB
• ck0002020354-ex31_1.htm (EX-31.1) — 15KB
• ck0002020354-ex31_2.htm (EX-31.2) — 15KB
• ck0002020354-ex31_3.htm (EX-31.3) — 15KB
• ck0002020354-ex32_1.htm (EX-32.1) — 8KB
• ck0002020354-ex32_2.htm (EX-32.2) — 7KB
• ck0002020354-ex32_3.htm (EX-32.3) — 7KB
• 0000950170-25-107346.txt ( ) — 10982KB
• ck0002020354-20250630.xsd (EX-101.SCH) — 1088KB
• ck0002020354-20250630_htm.xml (XML) — 2201KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 4 4 5 6 7 Schedule of Investments 8 Notes to the Financial Statements 11 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 24 ITEM 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 35 ITEM 4.

Controls and Procedures

Controls and Procedures 35 PART II OTHER INFORMATION 36 ITEM 1.

Legal Proceedings

Legal Proceedings 36 ITEM 1A.

Risk Factors

Risk Factors 36 ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 36 ITEM 3. Defaults Upon Senior Securities 36 ITEM 4. Mine Safety Disclosures 36 ITEM 5 Other Information 36 ITEM 6. Exhibits 36

SIGNATURES

SIGNATURES 38 2 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 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 not possible for us to predict all of the

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS West Bay BDC LLC (in thousands, except unit and per unit amounts) June 30, 2025 December 31, 2024 (Unaudited) Assets Investments, at fair value Non-controlled/non-affiliated investments (cost of $ 149,241 and $ 34,111 ) $ 148,942 $ 34,104 Investments in affiliated money market fund (cost of $ 1,846 and $ 68,997 ) 1,846 68,997 Cash 56,613 2,054 Deferred financing costs 1,608 2,205 Interest and dividends receivable 739 47 Deferred offering costs — 428 Other assets 38 103 Total assets $ 209,786 $ 107,938 Liabilities Debt $ 122,500 $ 45,000 Interest and other debt expenses payable 699 204 Management fees payable 299 69 Professional fees payable 89 140 Accrued deferred offering costs — 37 Accrued organization costs — 25 Accrued expenses and other liabilities 156 152 Total liabilities $ 123,743 $ 45,627 Commitments and contingencies (Note 7) Members' capital Preferred units ( no units issued and outstanding) $ — $ — Common units ( 4,927,640 and 3,589,962 units issued and outstanding as of June 30, 2025 and December 31, 2024) 86,281 63,106 Distributable earnings (loss) ( 238 ) ( 795 ) Total members' capital $ 86,043 $ 62,311 Total liabilities and members' capital $ 209,786 $ 107,938 Net asset value per unit $ 17.46 $ 17.36 The accompanying notes are an integral part of these unaudited financial statements. 4 Table of Contents West Bay BDC LLC (in thousands, except unit and per unit amounts) (Unaudited) For the Three Months Ended For the period from May 1, 2024 (inception) to For the Six Months Ended For the period from May 1, 2024 (inception) to June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Investment income: From non-controlled/non-affiliated investments:

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