Goldman Sachs BDC
This BDC is run by one of the most powerful and successful firms in Wall Street history. Goldman Sachs BDC Inc. (NYSE: GSBD) specializes in middle-market and mezzanine investment in private companies. It seeks to make capital appreciation through direct originations of secured debt, senior secured debt, junior secured debt, including first lien, first lien/last-out unitranche and second lien debt, unsecured debt, including mezzanine debt and, to a lesser extent, investments in equities.
The fund primarily invests in the United States. It seeks to invest between $10 million and $75 million in companies with EBITDA between $5 million and $75 million annually.
Last week, Goldman Sachs BDC reported that net investment income per share for the quarter ended June 30, 2021, was $0.57. Excluding purchase discount amortization per share of $0.09 from a merger, adjusted net investment income per share was $0.48, equating to an annualized net investment income yield on book value of 12%. Earnings per share for the quarter ended June 30, 2021, was $0.54.
Investors receive a 9.30% distribution. The Wells Fargo price target is $20.75, higher than the $19.58 consensus target and Tuesday’s closing print of $19.52.
This company has been hitting the ball out of the park with its portfolio investments. SuRo Capital Corp. (NASDAQ: SSSS) (formerly known as GSV Capital) is a publicly traded fund that seeks to invest in high-growth, venture-backed private companies. The firm primarily seeks to invest in social mobile, sustainability, cloud computing, big data, marketplaces and education sectors. It also seeks to create a portfolio of high-growth emerging private companies through a repeatable and disciplined investment approach, as well as to provide investors with access to such companies through its publicly traded common stock.
On August 3, 2021, SuRo Capital’s board of directors declared a dividend of $2.25 per share payable on September 30, 2021, to the company’s common stockholders of record as of the close of business on August 18, 2021. The dividend will be paid in cash or shares of the company’s common stock at the election of shareholders, although the total amount of cash to be distributed to all shareholders will be limited to no more than 50% of the total dividend to be paid to all shareholders.
Investors receive a staggering combined 22.63% dividend, which could vary over time. The $20 JMP Securities price target compares with a $19.38 consensus target. The shares closed at $14.23 on Tuesday.
Clearly, these stocks are not for widows and orphans. However aggressive income investors with a higher risk tolerance can rely on these three top companies that are well respected across Wall Street.