Goldman Sachs BDCMidCap Financial Investment

Goldman Sachs BDC vs MidCap Financial Investment

This page compares Goldman Sachs BDC Inc and MidCap Financial Investment Co, presenting an impartial view of their business models, financial performance, and market context. It highlights how each or...

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Private Market Liquidity: Could Goldman's Move Signal?

Private Market Liquidity: Could Goldman's Move Signal?

Goldman Sachs' acquisition of Industry Ventures for nearly $1 billion signals a strategic push by major financial players into the growing venture capital secondary market. This development suggests a broader investment opportunity among asset managers and service providers poised to benefit from the increasing demand for liquidity in private markets.

Published: October 14, 2025

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Banks in Private Credit

Banks in Private Credit

This carefully selected group of stocks captures the trillion-dollar shift as traditional banks enter the private lending arena. Our professional analysts have identified key Business Development Companies (BDCs) and specialized funds that stand to benefit from this growing financial trend.

Published: July 15, 2025

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Wall Street's Private Credit Push

Wall Street's Private Credit Push

This carefully selected group of stocks represents companies positioned to benefit from the major shift toward private credit on Wall Street. Professional investors have identified these Business Development Companies as potential winners from JPMorgan's strategic move into alternative lending, which could drive new partnerships and increased deal flow.

Published: July 15, 2025

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Investment Analysis

Pros

  • Strong third-quarter 2025 earnings per share beat by 6.7%, demonstrating effective income generation from its investment portfolio.
  • Focuses on secured lending to U.S. middle-market companies, with 98.2% of its portfolio in senior secured debt, enhancing credit protection.
  • Maintains a solid dividend track record, including a fourth quarterly base dividend of $0.32 per share and supplemental dividends recently announced.

Considerations

  • Net asset value declined by 2.1% in Q3 2025, indicating potential portfolio valuation challenges.
  • Revenue slightly missed analyst expectations by about 2%, reflecting some softness in total investment income.
  • Shares trade at a significant discount to net asset value (around 24.6%), reflecting market concerns on earnings sustainability and NAV shrinkage.

Pros

  • MidCap Financial Investment is a financial services company focused on middle-market lending, providing potential exposure to growing mid-sized companies.
  • Operates with a business development company structure that typically offers high dividend yields from income-generating loans.
  • Benefits from targeted lending strategies that may allow for diversification across industries within the middle market.

Considerations

  • Exposed to credit and economic cycle risks typical for middle-market lenders, which can lead to volatility in earnings and asset quality.
  • May face regulatory changes impacting business development companies that could affect operational flexibility and profitability.
  • Potentially limited scale compared to larger BDC peers, which could constrain competitive positioning and access to capital resources.

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