Goldman fires up latest BDC with $600m

Goldman Sachs Middle Market Lending Corporation will invest in first lien and second lien debt, as well as unitranche, mezzanine and some equity.  

Goldman Sachs Asset Management has registered to form another business development company with more than $600 million in capital commitments, a move that comes after a separate BDC began operations in the third quarter of last year.

The New York-based investment bank on Friday filed its paperwork with the US Securities and Exchange Commission, setting up Goldman Sachs Middle Market Lending Corporation (MMLC) as another alternative lending arm. The paperwork it filed included its notice to be regulated as a BDC and a general form for securities registration.

MMLC will invest in first lien and second lien debt alongside unitranche, mezzanine and the occasional equity commitment. It expects to invest in companies that have strong relationships with financial sponsors and experienced management teams along with viable exit strategies, which could include being acquired or an initial public offering. The company expects its secured debt investments to have three- to 10-year terms.

The new BDC had garnered $609.57 million in capital commitments as of 11 January. That same day it made its first drawdown for $30.48 million.

A Goldman spokeswoman did not return request for comment.

Brendan McGovern will serve as chief executive officer and president, while Jon Yoder will be chief operating officer. The chief financial officer and chief compliance officer post will be filled by Jonathan Lamm and Maya Teufel, respectively. Salvartore Lentini, David Yu and Scott Turco will all be executive vice presidents, while Yu will also be the head of research.

The board will include former Wells Fargo executive Carlos Evans, former Deloitte & Touche partner Richard Mark, former US Bank Wealth Management chief investment officer Timothy Leach and current chair of the Goldman Sachs Asset Management International board Katherine Uniacke.

The publicly traded Goldman Sachs BDC (GSBD) and private Goldman Sachs Private Middle Market Credit (PMMC) are the firm’s other BDCs. Goldman registered GSBD as a BDC in March 2013 and took it public two years later at $20 a share, raising $120 million from an offering of 6 million shares. MMLC began operations in the third quarter, with its initial quarterly report showing the BDC had at least $730.05 million in commitments before it launched.