Goldman Sachs BDC Cites ‘Carnage,’ CEO Shuns Energy Lending

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Goldman Sachs BDC Inc., the commercial-lender that had an initial public offering this year, said it’s looking beyond energy companies to focus on more consistent returns for its investors.

“There is pretty significant carnage in that space,” Chief Executive Officer Brendan McGovern said of the energy industry on a conference call Friday.

The lender, which was spun off by Goldman Sachs Group Inc. and counts the bank as a shareholder, has made investments in industries including electronics, health and real estate, according to the company’s quarterly regulatory filing Thursday. Oil prices have fallen 26 percent since the end of June, wiping out a second-quarter rally.

Goldman Sachs BDC climbed 2.4 percent to $24.22 at 4:02 p.m. in New York, extending the gain to 21 percent since its IPO in March. Second-quarter earnings per share rose to 50 cents from 46 cents, the New York-based company said Thursday in a statement.

“Our goal is to have stable, producing companies that generate a very nice income flow that we can then distribute back to our investors,” McGovern said. “As I look at the energy sector today, as an asset class, it doesn’t really stick with that ultimate goal.”

Billionaire hedge fund manager Dan Loeb said in a conference call Thursday that he is seeking opportunities to invest in energy-related credit after mostly steering clear of the industry.

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