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 per cent 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.

The $3.2 billion fund is the latest to add investments to non-accrual status, joining BDCs managed by Morgan Stanley, Blackstone Group Inc. and others. 

More than 99.5 per cent of the fund’s total non-accruals at cost are positions that predated when current management took over the portfolio in March 2022, according to Vivek Bantwal, Goldman’s global co-head of private credit.

“Our internal workout teams are deeply engaged with these borrowers to maximize recovery,” Bantwal said in a statement. “The team believes the fundamental health of the private credit industry remains strong and is confident in our credit selection process.”

Goldman Sachs BDC also cut the value of its assets by 3.7 per cent to $12.17 per share. It left its dividend unchanged at 32 cents from the quarter prior.

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Published on May 8, 2026