Goldman Sachs Private Credit Fund’s Share of Bad Loans Rises

A publicly-traded private credit fund managed by Goldman Sachs Group Inc. put two additional companies on non-accrual status in the first quarter, as the industry grapples with mounting concerns over exposure to businesses vulnerable to AI-driven disruption.

Investments with the designation, typically reserved only for a fund’s most troubled holdings, now comprise 4.7% of Goldman Sachs BDC Inc.’s portfolio at cost, the fund said in a filing late Thursday. That’s up 1.9 percentage points from the prior quarter. The new additions include security software provider 3SI Security Systems and physician-practice management group One GI.