Goldman Sachs’ private credit fund has again avoided the elevated redemption levels seen across parts of the non-traded BDC market, with second-quarter repurchase requests coming in below its quarterly limit, according to a report by Reuters.
GS Credit said investors sought to repurchase around 3.24% of total shares during the quarter, below the fund’s 5% cap. The fund fulfilled all repurchase requests in full and generated about $275m of gross inflows over the period.
In a letter to shareholders, Goldman said that the result contrasts with broader pressure across the sector, where several large non-traded BDC managers have reported second-quarter repurchase requests of around 10% to nearly 17% of shares outstanding.
Redemption activity across parts of the market has been driven in part by concerns that artificial intelligence could disrupt software companies and affect their ability to service debt. Goldman said it continues to believe established software businesses retain strong defensive characteristics, including mission-critical workflows, proprietary data, regulatory complexity and customer relationships.
GS Credit also reported a non-accrual rate of 0.2% as of 31 March, below the range reported by other non-traded BDCs, which Goldman said stood between 0.4% and about 2.4%.
The fund said payment-in-kind income accounted for 3.3% of investment income as of 31 March, also below the industry average. Goldman added that just 0.3% of PIK income came from amended or restructured loans.
