Goldman Sachs Private Credit Income Soars, But Unrealized Losses Mount

TL;DR

**Goldman Sachs Private Credit is aggressively expanding its loan book, driving massive income growth, but watch out for the growing unrealized losses that could signal trouble ahead.**

AI Summary

Goldman Sachs Private Credit Corp. reported a significant increase in total investment income, reaching $253.77 million for the three months ended September 30, 2025, up from $131.70 million in the same period of 2024, representing a 92.6% increase. For the nine months ended September 30, 2025, total investment income surged to $667.87 million, a 125.0% increase from $296.85 million in 2024. Net investment income also saw substantial growth, rising to $180.71 million for the three-month period (up 93.9%) and $472.33 million for the nine-month period (up 120.4%). However, the company experienced net realized and unrealized losses of $17.40 million for the three months and $53.39 million for the nine months ended September 30, 2025, a notable shift from a $5.65 million gain in the prior nine-month period. Total assets expanded significantly to $12.39 billion as of September 30, 2025, from $7.95 billion at December 31, 2024, driven by a substantial increase in investments at fair value to $11.61 billion from $7.27 billion. Debt also increased to $4.01 billion from $2.58 billion, reflecting increased leverage. Net asset value per common share slightly decreased to $25.04 from $25.22.

Why It Matters

This 10-Q reveals Goldman Sachs Private Credit Corp.'s aggressive growth strategy, with a massive 125% increase in investment income over nine months, signaling strong demand for private credit and the firm's ability to deploy capital. For investors, the significant expansion of the investment portfolio to $11.61 billion suggests a robust pipeline and potential for future earnings, but the mounting net realized and unrealized losses of $53.39 million could indicate increasing credit risk or valuation pressures in their portfolio, a critical concern in a competitive private credit market. Employees benefit from the firm's expansion, while customers of the portfolio companies gain access to capital. The broader market should note the continued shift of lending from traditional banks to private credit vehicles, with Goldman Sachs playing a leading role.

Risk Assessment

Risk Level: medium — The risk level is medium due to the significant increase in net realized and unrealized losses, totaling $53.39 million for the nine months ended September 30, 2025, a stark contrast to a $5.65 million gain in the prior year. This indicates potential deterioration in the fair value of investments. Additionally, the substantial increase in debt to $4.01 billion from $2.58 billion as of December 31, 2024, increases financial leverage and sensitivity to interest rate changes, as evidenced by interest and other debt expenses rising to $142.85 million for the nine-month period.

Analyst Insight

Investors should closely monitor the quality of Goldman Sachs Private Credit Corp.'s loan portfolio, specifically the drivers behind the increasing unrealized losses. While income growth is impressive, a deeper dive into the credit performance of underlying assets is warranted. Consider the implications of rising interest rates on their debt obligations and the potential for further valuation adjustments in a less liquid private credit market.

Financial Highlights

debt To Equity

0.50

revenue

$667.87M

operating Margin

70.7%

total Assets

$12.39B

total Debt

$4.01B

net Income

$472.33M

eps

$1.44

gross Margin

N/A

cash Position

$126.23M

revenue Growth

+125.0%

Revenue Breakdown

Key Numbers

• $667.87M — Total Investment Income (Increased 125.0% for the nine months ended September 30, 2025, from $296.85 million in 2024.)
• $472.33M — Net Investment Income (Increased 120.4% for the nine months ended September 30, 2025, from $214.26 million in 2024.)
• $53.39M — Net Realized & Unrealized Losses (A significant shift from a $5.65 million gain in the prior nine-month period, indicating potential portfolio deterioration.)
• $11.61B — Total Investments at Fair Value (Increased from $7.27 billion at December 31, 2024, reflecting substantial portfolio growth.)
• $4.01B — Debt (Increased from $2.58 billion at December 31, 2024, indicating higher leverage.)
• $25.04 — Net Asset Value per Common Share (Slightly decreased from $25.22 at December 31, 2024.)
• 329,574,149 — Common Shares Outstanding (As of November 12, 2025, demonstrating significant capital raises.)
• $142.85M — Interest and Other Debt Expenses (Increased for the nine months ended September 30, 2025, from $46.21 million in 2024, due to higher debt levels.)

Key Players & Entities

• Goldman Sachs Private Credit Corp. (company) — Registrant
• Goldman Sachs Asset Management, L.P. (company) — Investment Adviser
• SEC (regulator) — U.S. Securities and Exchange Commission
• $253.77 million (dollar_amount) — Total investment income for Q3 2025
• $131.70 million (dollar_amount) — Total investment income for Q3 2024
• $667.87 million (dollar_amount) — Total investment income for nine months ended Sep 30, 2025
• $296.85 million (dollar_amount) — Total investment income for nine months ended Sep 30, 2024
• $180.71 million (dollar_amount) — Net investment income for Q3 2025
• $53.39 million (dollar_amount) — Net realized and unrealized losses for nine months ended Sep 30, 2025
• $12.39 billion (dollar_amount) — Total assets as of Sep 30, 2025

FAQ

Risk Factors

• Increased Leverage and Debt Expenses [high — financial]: Debt increased to $4.01 billion from $2.58 billion, a 55.4% rise. This led to a substantial increase in interest and other debt expenses to $142.85 million for the nine months ended September 30, 2025, from $46.21 million in the prior year, impacting profitability.
• Net Realized and Unrealized Losses [medium — market]: The company experienced net realized and unrealized losses of $53.39 million for the nine months ended September 30, 2025, a significant shift from a $5.65 million gain in the same period of 2024. This indicates potential underperformance or adverse market movements in the investment portfolio.
• Slight Decline in Net Asset Value Per Share [medium — financial]: Net asset value per common share decreased slightly to $25.04 from $25.22. While the overall asset base grew significantly, this per-share decrease suggests that the growth in shares outstanding or the net losses may be outpacing the growth in underlying asset value on a per-share basis.
• Dependence on Investment Adviser [medium — operational]: As a credit corporation, the company relies heavily on its investment adviser for sourcing deals, managing investments, and generating income. Any disruption or underperformance by the adviser could materially impact the company's financial results.
• Interest Rate Sensitivity [medium — market]: The company's investment portfolio likely consists of debt instruments, making it sensitive to changes in interest rates. Rising interest rates could negatively impact the fair value of existing investments and increase borrowing costs.

Industry Context

The private credit sector is experiencing robust growth, driven by demand for flexible financing solutions from middle-market companies and a more constrained traditional banking environment. Key trends include increased specialization in niche lending areas, a focus on floating-rate debt to mitigate interest rate risk, and ongoing consolidation. Competition remains intense, with established players like Goldman Sachs Private Credit Corp. leveraging their scale and expertise to capture market share.

Regulatory Implications

As a publicly traded entity, Goldman Sachs Private Credit Corp. is subject to SEC regulations and reporting requirements. Changes in accounting standards or regulatory frameworks impacting credit funds, such as those related to valuation, leverage, or disclosure, could affect its operations and financial reporting.

What Investors Should Do

1. Monitor the trend of net realized and unrealized losses.
2. Analyze the impact of increased leverage on profitability and risk.
3. Assess the sustainability of investment income growth.
4. Evaluate the slight decrease in NAV per share in the context of capital raises.

Key Dates

• 2025-09-30: Quarterly Financial Reporting — Reported significant growth in investment income and assets, alongside increased debt and net realized/unrealized losses.
• 2024-12-31: Year-End Financial Reporting — Established the baseline for the significant growth observed in the nine months of 2025, with lower asset base and debt.
• 2025-11-12: Common Shares Outstanding Update — Indicates substantial capital raises through share issuances, supporting asset growth.

Glossary

Net Asset Value (NAV) per Common Share

The value of a company's assets minus its liabilities, divided by the number of outstanding common shares. It represents the theoretical value of each share. (A key metric for investors to assess the underlying value of their investment and track changes over time.)

Debt Issuance Costs

Costs incurred by a company when issuing debt, such as underwriting fees, legal fees, and registration fees. These are typically amortized over the life of the debt. (Impacts the effective interest rate and the carrying value of debt on the balance sheet.)

Distributable Earnings (Loss)

The cumulative net investment income earned by the company that has not yet been distributed to shareholders. (Indicates the company's ability to generate income available for distribution.)

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 at the measurement date. (Crucial for valuing the company's investment portfolio, which constitutes the majority of its assets.)

Leverage

The use of borrowed money to increase the potential return on an investment. In this context, it refers to the company's use of debt to finance its investments. (Amplifies both potential gains and losses, and increases financial risk.)

Year-Over-Year Comparison

Goldman Sachs Private Credit Corp. has demonstrated aggressive growth in its investment portfolio, with total assets nearly doubling from $7.95 billion at the end of 2024 to $12.39 billion by September 30, 2025. This expansion was primarily funded by a significant increase in debt, which rose by 55.4% to $4.01 billion, indicating a higher reliance on leverage. While total investment income more than doubled for the nine-month period, driven by a larger investment base, the company also experienced a notable shift to net realized and unrealized losses, contrasting with a gain in the prior year, suggesting increased portfolio risk.

Key Financial Figures

• $0.001 — he registrant's common stock, par value $0.001 per share, outstanding as of November 1

Filing Documents

• ck0001920145-20250930.htm (10-Q) — 16905KB
• ck0001920145-ex10_1.htm (EX-10.1) — 2525KB
• ck0001920145-ex10_2.htm (EX-10.2) — 14KB
• ck0001920145-ex10_3.htm (EX-10.3) — 17KB
• ck0001920145-ex10_5.htm (EX-10.5) — 31KB
• ck0001920145-ex10_6.htm (EX-10.6) — 33KB
• ck0001920145-ex31_1.htm (EX-31.1) — 26KB
• ck0001920145-ex31_2.htm (EX-31.2) — 27KB
• ck0001920145-ex31_3.htm (EX-31.3) — 27KB
• ck0001920145-ex32_1.htm (EX-32.1) — 7KB
• ck0001920145-ex32_2.htm (EX-32.2) — 6KB
• ck0001920145-ex32_3.htm (EX-32.3) — 7KB
• 0001193125-25-277550.txt ( ) — 50351KB
• ck0001920145-20250930.xsd (EX-101.SCH) — 2780KB
• ck0001920145-20250930_htm.xml (XML) — 15753KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 3 Consolidated Statements of Assets and Liabilities 3 Consolidated Statements of Operations 4 Consolidated Statements of Changes in Net Assets 5 Consolidated Statements of Cash Flows 6 Consolidated Schedules of Investments 7 Notes to the Consolidated Financial Statements 39 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 67 ITEM 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 83 ITEM 4.

Controls and Procedures

Controls and Procedures 85 PART II. OTHER INFORMATION 85 ITEM 1.

Legal Proceedings

Legal Proceedings 85 ITEM 1A.

Risk Factors

Risk Factors 85 ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 89 ITEM 3. Defaults Upon Senior Securities 90 ITEM 4. Mine Safety Disclosures 90 ITEM 5. Other Information 90 ITEM 6. Exhibits 91

SIGNATURES

SIGNATURES 93 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) September 30, December 31, 2025 (Unaudited) 2024 Assets Investments, at fair value Non-controlled/non-affiliated investments (cost of $ 11,585,708 and $ 7,234,752 ) $ 11,568,761 $ 7,226,585 Non-controlled affiliated investments (cost of $ 53,732 and $ 51,170 ) 42,752 47,230 Total investments, at fair value (cost of $ 11,639,440 and $ 7,285,922 ) $ 11,611,513 $ 7,273,815 Investments in affiliated money market fund (cost of $ 518,157 and $ 444,718 ) 518,157 444,718 Cash 126,228 120,377 Interest and dividends receivable 73,550 40,396 Deferred financing costs 36,633 29,448 Receivable for investments sold 8,307 40,859 Receivable from investment adviser 5,303 3,074 Deferred offering costs 605 965 Unrealized appreciation on derivatives 2,702 — Other assets 6,994 599 Total assets $ 12,389,992 $ 7,954,251 Liabilities Debt (net of debt issuance costs of $ 11,985 and $—) $ 4,010,220 $ 2,576,893 Payable for investments purchased 173,493 349,328 Distribution payable 98,960 64,446 Payable for share repurchases 92,573 25,582 Interest and other debt expenses payable 46,820 15,335 Management fees payable 8,320 5,067 Incentive fees based on income payable 7,397 7,039 Accrued expenses and other liabilities 5,905 4,857 Total liabilities $ 4,443,688 $ 3,048,547 Commitments and contingencies (Note 8) 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, 317,407,689 and 194,480,997 common shares issued and outstanding as of September 30, 2025 and December 31, 2024) 317 194 Paid-in capita

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