Goldman Sachs BDC (GSBD) 11 Aug 202020 Q2 Earnings call transcript

Good morning. This is Dennis, and I will be your conference facilitator today. I would like to welcome everyone to the Goldman Sachs BDC, Inc.

Second Quarter 2020 Earnings Conference Call. Please note that all participants will be in listen-only mode until the end of the call when we will open up the line for questions.

call, remarks like may today's listeners remind begin today's that include we I to would our Before forward-looking statements. the are of represent by statements Company's future regarding These events their nature Company's uncertain the outside and control. belief that the condition factors, The differ, from from including those statements those possibly in of result in may as Company's described indicated and a is Company's a materially, results forward-looking actual SEC financial filings. what number time-to-time of material This Goldman of audiocast Inc. BDC, copyrighted is Sachs reproduced rebroadcast without duplicated, be consent. not may and or our after the the the be under our closed, of earnings market press of release Company www.goldmansachsbdc.com can earnings Yesterday, presentation, Investor issued Resources and found which supplemental homepage at an on section. the posted a website both Form yesterday These SEC. the XX-Q filed documents reviewed the should be with in conjunction Company's with call Tuesday, XXXX, being August conference purposes. is today, XX, recorded replay for This now Chief McGovern, to turn BDC. Executive Officer over the I'll Goldman Sachs Brendan call of

and our our refer turning portfolio. in the we conference for current Good quarter and to Thank you the it our the portfolio development to an with second joining results. Chief thank with Jonathan Dennis. by our as company, we'll before I'll Lamm, today through comments merger Jon then Lending an update call detail Jonathan business discuss I'm which including the of also MMLC. over for provide our us Lamm respect Goldman Market Chief environment affiliated regarding call. I'll providing on proposed our walk Corp, of Sachs Yoder, our overview will more Middle to to Jon morning, Operating financial you, Yoder call begin Officer. results our our Officer; earnings quarter joined everyone, Financial performance second by on

some Finally, closing Q&A. open before for remarks I'll we line with conclude

our covered dividend NII after million. quarter. results. again during to income fully per was income share net quarter net with the tax once $XX.X The $X.XX second get Company’s on QX investment let's investment that, So of the

earnings end since particularly GAAP share, quarter, per an the as credit from in Net X.X% second and improvement which our these challenging represented share we in share increased overall gains unchanged from generated $XX.XX X.X% first total solid of represents Investments of asset economic the believe quarterly as We $X.XX, and Company the both, fair during results and inception of the remained in income value was X.X% the market on portfolio, highest resulting by light per tightening spreads. the in partly the the net investment quarter. to non-accrual are Our quarter. reflects during of value well cost strong environment, EPS per environment produced but at that of investment portfolio. any the at quarter-over-quarter operated net

that performance our the per market asset we closed September economic impact after on $X.XX of on investing to significant believe a announced We This the share As our value the dividend, we Board our XXXX. annualized XX, an end payable of businesses QX. of yield based yesterday, durable of share to during dividend shareholders XX.X%, prone per quarter net to attribute in declared as to focus less record equates are cycles. and strong at from

resilience include services which demonstrated largest software, crisis. far IT this thus Our in sector exposures, and enabled business have healthcare

nature May were quarter believe suggest and rates growth year-over-year you. applications. to numbers of the revenue retention were even lockdowns when low and XX% most For example, of April metrics Customer reflects of the we preliminary that critical also rates single our software revenue strong, during portfolio year-over-year which first mission the double they digit maintained high XXXX, growth digit in companies averaged

response, impacted negatively where outsourced or comprised portfolio in In primarily March providing companies businesses in return assumptions plans to is hospital about of demand with for for more business outpatient normalized services engaged and the the were to conservative services. non-essential healthcare it’s remainder duration it year medical of so-called reforecast the their that time prohibited lockdown services. medical healthcare by take services. issued businesses our will portfolio of Our lockdowns These

obvious lockdown private our main other rationally corporate companies dynamic this a as are that and companies analyzing equity capital significant recessions cycles, response than phases to uncertainty. In performance better cases, operating to for swiftly were progressed, however, adapt commencement, depth ensure than began Expenses during aggressively global volumes, the revenues liquidity services has slow decisive outlays sheet second businesses is were to business stands companies of and adjust general, proactive lockdowns duration lockdowns, of had in resulted medical balance rebound forecasts By often as environment. and and given through non-essential was in quicker quickly lenders. in providing management orders. typical that However, In of recessionary stage and than to from difficult period impacts crisis acted for customer In and environment. view, to plans the among been were benefit acting environment, companies health of in economic and recognition recovery. respond this management models side from devastating focus sponsors this remarkable ability the business were cut, ensuing to to first owners and the challenging the were teams this out early the business the remains business of and large quarter put face the this of are this In owners geographies and most most compared hold, typical to in these companies has large, grow one cycles, on In forecast. many the for the extraordinary sooner lifted and priority. expected on demand patient is liquidity the recent In forecast.

we're before go the way pleased to reserve the far to undertaken long to in value thus broader efforts a by the lockdowns, certainly economy of is normal this crisis. and additional returns there While possibility

announced ownership want we Directors merger following directors. ratio special XXth, entered by I approved their announced was to into this update On the of and that consideration on consisting unanimously of a net has MMLC. June our agreement of been value to The with and exchange company’s exclusively company, an plan Next, restated Board provide of amended exchange from value. connection and an to previously amendment, the fixed of committee this recommendations independent entered the each changed asset asset a equal merger has incentive an In will with the value will end so whereby the fee closing variable GSBD through combined to for proportional be -- agreed MMLC's net the GSAM year combined has of MMLC receive the for exchange asset that additional company a contributions to at determined of net proportional representing shares, shareholders XXXX. the extend company’s cap ratio

that I'd or less fees implementation GSBD reminder, expect cap the GSBD to of each behalf we per cap fee accretive creates fees than GSAM GSAM reimburse provides expenses and and share be fee variable MMLC $X.XX short and number with payable transaction incurred in the to for per to significant GSBD of As effective will of reiterate: to to currently also net the and by a MMLC a benefits to GSBD's $X in million long-term. incentive MMLC. all like and without First, subject connection will their if respect merger cap. of or with shareholders This transaction, on a incentive reduced payable income the be be investment the NII that to agreed for share

creates which investment investment we of adding maintain for credit Second, expect capital grade with capacity environment, GSBD's also today’s and deploy the and to result transaction the compliance GSBD, rating into more at same significant time safety in regulatory ratio contractual to requirements. while leverage greater margin to deleveraging a attractive

metrics, Third, in in the It worth representing non-accrual a portfolio has a portfolio to improvement one than noting and MMLC diversification. is yield at and status, portfolio at greater less result cost. on X.X% value overall X.X% single-name also higher only including of is merger investment fair expected that GSBD's

funding of and in the of trading more liquidity. is doubles to than diversified greater combination expected including cost and Finally, scale size to sources, the benefits improved access GSBD result synergies

the are the a Special confident companies. all vote record interest shareholders For date reasons, is Xrd eligible Xnd. very for -- is shareholders Meeting these proxy of and both In proxy The to occur will best of to that August shareholders October in transaction Shareholder this is statements. on we scheduled receive materials coming transaction this on days,

the to vote Yoder. time the favor turn of With me take in to Jon should it that, everyone over let merger. encourage we So,

Thanks, Brendan.

of in April second less synchronous the were we X% the principal portfolio agreed and of to strong by portfolio, come with case, in representing loans interest the our companies the cost June down of July, monthly as loan. global our but decades In Against payments, rebounded. Second and as quarter of XXX already companies will backdrop, quarter for shut business this interest payments infusion payments loan diversified this principal is adversity. and to years and October, be another and were payment economy defer three portfolio our resumed to In company monthly payment sectors right in which equity more by an capital junior that has the remembered modified for of companies, performance the one defer making have pleased liquidity value. a underlying or exchange on entire with in until undoubtedly of In we in to the extraordinary portfolio period, defer during approximately to we agreed basis. collected but and XXXX as just fair case, face to May, payments demonstrated payment both portfolio at the our

portfolio executed two cost quarter In amendment, cash interest the negotiating that, the switch by of note form typically by rate I the of like compensation owner these, these connection an or in obtained relate form executed with of to equity represent injection or we would interest. Both to a to capital businesses. credit agreeing addition, than none these new the fair investments of permitted amendments of X% that of both of In other the we business. amendments take other cases, or which in companies. the for the at is capital infusions increased from non-sponsored majority These fee, investment support value. a were this investors two when amendments and other amendments less borrowers to in

on enhanced Terms significantly generally review because in quarter now period Deal of protection. tighter was add increase focus and platform a saw new wider the the our recessionary include the pre-COVID see as While over performs early few of quarter, our the quite low quarter were and process in part active the the across we steady also opportunities. spreads, how existing meaningfully covenants primarily progressed. call a are our performance it reviewing I'd financial than investment last were new portfolio, this is deals but we period. can that company's we months actually better a underwriting during better volumes to

current on beneficiary the we engaged remains be owners While existing continue sponsors quarter, to that evaluate primarily middle company investment in we our a improved our market confident and platform will are to be opportunities, of portfolio the focused environment. with the and will highly

turn specifics for the quarter. to So, to

investment of but I one and a million on During commitments we’ve the in received these new company It market drawdowns investment portfolio in would was driven companies. which the Xth. company negligible We that made were certain went in second portfolio we an quarter, $XX.X to a on was repayment This one our loan billion. company, existing revolving spoke the and IPO by of that this on to $XX in imply quarter, quickly which primarily capitalization loan-to-value of raised new to an public DiscoverOrg, approximately full repayments, was made lien lien two we investment June over X%. of Last second was commitments size. our portfolio to ZoomInfo both about

solid that is This portfolio quarter, is we across generally companies. experienced evidence net we think which loan liquidity repayments our commitments, of revolving

common and June secured of $X,XXX.X originations as million XX.X% muted quarter, value, including this launch quarter-over-quarter. portfolio senior as in preferred were lien unitranche and comprised in second first well in portfolio the at XX.X% repayment unchanged Given lien, is and debt, our as X.X% our in Total loans, X.X% relatively XXth unsecured fair investments in of in debt XX.X% X.X% stock. activity and first lien/last-out composition

June of $X,XXX.X $XX.X We commitments investments commitments million total million. also had of and as unfunded XXth, bringing to

decline at X.X%, quarter, end compared as industries. producing yield at to of of As end of second was average the of investment XX the in had attributable total first debt the our end, the the to yields end the The X.X% companies was XXX operating end quarter compared The quarter we X.X% portfolio across our The during different income and of at the at at weighted primarily at cost investment cost to yield portfolio X.X% was quarter quarter. decline of in average on weighted as QX. the LIBOR. the

majority floor further higher. the portfolio we given our However, now vast call headwinds, I'll significant has Therefore, current financial our LIBOR of expect of results. not or X% walk LIBOR to Jonathan to a through do turn the levels.

Thanks, Jon.

on quarter, excess being. the of obligations balance our During in cash our for continued the we to sheet maintain unfunded time

$XX.X approximately $XXX.X of and we sheet of the a As QX million equivalents cash as had investment end against of result, of balance unfunded cash our million. commitments on

cost, it to this maintaining cognizant are a on we excess we environment. While have believe hand cash has during excess prudent liquidity remains extraordinary this that

level to economic continue liquidity decline normalizes. to an basis the of will would on and this expect environment excess as evaluate We it ongoing the

operating Turning our to results.

income Our the share $X.XX previous investment in in Earnings QX. a of net were per $X.XX, to share per the compared was per a same loss share as quarter. $X.XX,

was net prior the quarter expenses primarily down Expenses waiver the with in second ended the $XX investment We in reflecting down was LIBOR. million $XX.X decrease to income decline which million quarter total million, in $XX.X primarily were to for $XX last due quarter. from decrease as income of a fee in Our for quarter-over-quarter, a voluntary million interest driven the by quarter. was compared The quarter. the

tax have During as $XX.XX We from quarter, ending at of resulting to depreciation continued accumulated income driven $XX.XX of investments, X.X times The by times QX. taxable in debt undistributed prior as investment will the dividend at investment the amount. to the $XX.X tightening net excise cost X.XX on net share the exceeded has a into we of quarter compared with versus credit higher to million price is spillover unrealized on in spreads. form it much new pay back that replace the quarter, that net of was With small asset value a outstanding. cost that, per spilled to of the XXXX, to current the $X.XX issuing equates over from result our This years, I the net net QX of turn believe relative to Brendan. equity Company historically. end all a share prior undistributed income equity with investment ended the as shares end, our to we income at to per primarily Consistent

we’re the Jonathan. closing, and during we excluding that closer in we’re the Company’s ongoing Thanks, operating beginning performance to aware In caused remain the highly disruption the environment an that than likely while quarter, pleased of economic the strong end by with pandemic. the we’re

are of At merger the take time, for at unique of our our a we keeping management an We such to to MMLC challenging the are same focused believe and is owners we this encourage to watch navigate through the opportunity with time. opportunities in work the on sponsors shareholders portfolio create and teams for the financial and companies vote that our earliest to shareholders. with time favor proposed your value convenience. We transaction careful just

let’s of always, line this us we the all for managing as hearing thank from always, worth our for up that privilege questions. capital. as you, especially open With you to extraordinary open And we’re the environment. As of through

[Operator with line ahead. the Fargo Finian Please Wells first question Instructions] And the of Securities. from go O'Shea

I Thanks here. morning. a having late everyone's was I hope for well. on. Hi. doing Good little me

So, this addressed. if forgive me is

you the just or only $X.X waiver was fee $X.X there [Ph] cap million XX. dividend. I design earn the Obviously, -- million. hoc quarter’s the to fee it? ad waiver thought this helps to Is the of an to designed waiver incentive about Asking a is meet it

that’s maybe color it. So, would But, there helpful. be any

here we was But over pretty the place. with outstanding view Brendan. it waiver Jon contractual We including It’s accretion ultimately, Finian. think to put here. that's today, incremental waiver. yes, also shareholders including a that deleveraging, to as extraordinary basis. to means fee but look the support fee a the Yes, obviously the he And continue in to enumerated we And benefit forward get. to we further will makes the the incentive we importantly the the very merger, this transaction, dividend the call had those bunch if merger was of then as per let well. And to this in here points on I'll has we talked incremental support and a about net variable as benefits that and in thought support above to companies And lot environment. Company investment the a a sense chime income share the

line, approach drive as company again, was in we so, merger the over incremental getting we the to it to sort of And thought finish appropriate that regard. support

to I level earn there, your through cost with dividend and about you mean, the which term helpful. That's and the book, very Sure. time. Are the even probably good is to with it's earnable, say able but just spread appreciating that over support your certain a high, rebound, and now dividend dividend the waivers leverage And this longer Even with is you're perhaps XX% a all borderline. you view? at structure. merger? least have of confident a Do follow

Yes.

the I point think, main here. I that's

continue as a to the given And a incremental for especially of companies, pro done merger higher we that with forma combine As fact dividend non-accruals, do lack we transaction yields, merger. capacity. deleveraging two you got and see place when to affordable MMLC, benefits, take big the look again forward asset portfolio the at we've will look that the you when

is the that me other mentioned And benefit as to deleveraging. the add Brendan is let

much part we're a we environment it is, spread better of were in obviously, And pre-COVID. today than so,

capital So, incredibly think pro as better to our ability is into merger, about forma helpful. of also the we the spread environment following the deploy deleveraging

it's more just let's it's say the can from than also So, the that incremental plus do A there. we B,

that Can sponsor with of open talk or more avenue? the the way to open pretty And the talk a question. about what quarter. -- fairway developing sure. you that channel. of or outlook historically consistent I'm most traditional final -- in active the heard down been just commentary, kind you non-sponsored Is appreciating in Okay, you’ve a similar about less market? market we this Can

Yes.

So, a good question.

middle middle I what that think market, our not when that monetizing borrow it's way other, to less two repeating of partners get. When non-sponsored connections in this And were, private worth our grow where the companies the somewhat activity you they is lower means that to historically -- we in when to engine it perhaps the an likely there said owners and in enterprise activity, you're kind here valuations in owners a and they're -- expect value with business business a through they meaning and increasing one where borrow themselves, than once one of market have again interest before business there sponsor their is work money our of to could firms. less I of within rather as probably pursue tend probably we think owners sourcing, lot from equity two then as high strong seen type is their you're business to would to own -- is of each monetize from our our to otherwise think, than looking environment from frankly of sponsor is being through a initiatives. period advantage we take a time, opposition of the pistons are are bid as that perhaps on growth environment to money lot sponsor and of

So, look, still we're early I the in mean, stages.

was I activity side say, today, are on to rebounding, see anywhere, I shock there's think, a volumes didn't certainly to we'll expectation, of into that's sponsored the looking and more coming the frankly at as on we almost system. months in pipeline quarters. the our it March, and non-sponsored. non-sponsored May history And our evidence But, lot past a and play starting think I'd based and April see is And out. that that just

this Okay. release, Thanks. exclusive of covenant your one you gave modifications. And immaterial covenant I X Is think just less regular or more, material release…

Yes.

of the cash. as I'm most we color again, we -- the of call, comprised we what on X% in granted changes the important had may than sure portfolio. of less three focused And the the or the you to heard, remarks Finian, prepared switched when names are -- exactly have we the X% had think we stepped we're of what couple again in you loan less information existing but, gave So, and not to amendments are or that -- portfolio names we X% from where where the a deferral was than But documents.

the is what of of X% modification the of So, the all-in, cash total payment kind change I'll than less or were terms cash portfolio. call

So, we think fairly small.

consider to care to more addition we the of any is garden we amendments for would more In -- really what a quarter, material, but less what side this thing. typical there's certainly other in about be variety lot is, that,

were highlight anything specially there so that, but would nothing besides economically other we And material. that things as

kind quoted, mark important to say of I others know have amendments. and I'd it it’s Finian, we know -- And payments between

about are it that have basis. was specific know value other quite you about total, portfolio quoted. Jon other take amendments, of fair on as I [indiscernible] modifications include a other we those would in that, others alluded your categories, the So, X% well of waivers

from ahead. [Operator the Raymond Robert Instructions] question’s go And of line Please your Dodd James. with next

question. Difficulty] to up Tim’s Following [Technical

dividend waivers your we to Difficulty] contractual rebound a still a are $X.XX at of that in I Difficulty] On little up the further the little coming spreads waiver, assets. a we inspired, [Technical time mean, relative wider little today. bit, [Technical dividend investible a bit NAV, to I hard when after there’s earning look – have unless structural a

other it's up -- it going that but go there Because obviously are on any leverage a are to MMLC, there still any factors into clarification taking that? on down is [Technical further, even Difficulty] seems bit beyond going So, maybe

we’re basis take you walk as Yes. we forward a through -- Jon and as the But you happy the is contribute go the more on given investing well. a here go that pro Robert, there accretion we if to detail for hit here, as deleveraging think one I'll on that. NII -- components there's crack incremental through to what here capacity will described forma in forward

Robert would much environment, higher described So, we that describe know, spreads, announced We more this wouldn't it investing previously any protection historically. Jonathan upfront like. above knows and yields, more target we've a call as well, and better points, certainly the higher

the if when component I look bigger LIBOR in of this think of fixed debt, also, GSBD you having big fixed quarter, component the investment And big, much look basis, on standalone a a at decrease a costs at that income. particularly being some are unsecured you capital structure, of bit debt our down hit where take our and MMLC. That’s in did a at LIBOR in go obligations quarter in -- debt is this like cost a fixed not we more dynamic a a of nature.

be will as component that So well. here a

Another category GSBD assets currently producing particular. at monetization is in non-income of

example, would of ability asset handful Defense and producing income the a names, monetize So, that portfolio reinvest producing performance, to in today, a here. assets Hunter be strong good in non-income

of other we so, any complete this particular, -- income. lack And dynamic again, in another quarter

this XXX,XXX about had of we think amendment Robert, of a discount. fee quarter, amortization or I

looks basis on in like million I ago a something so, more quarter. year that the And a normalized $X on think year-over-year number basis,

basis of of all certainly, a much forma pro higher income take level? you per supportive on components, a those if share So,

appreciate that. I So,

So is obviously one I the of of mean, components Difficulty]. supporting [Technical that

Are two be you Difficulty] to going So, in here. environment? questions [Technical this

as that. here has crack thoughts Yes. Jon sure I'll a take I'm some well. on

well of deleveraging, opportunity is current within team to investment that quickly merger environment. current of the there the into is take deploy the capability again, capacity, market So the incremental advantage and capital

So, Robert, for a this into current see us that get deployed market environment. and for taking long capital excess to put out you example, wouldn't time

quite current don't of I in that. yields to we so, risk is higher environment the produce supportive in would up order those And spectrum, think

safer loans In this understanding that fact, to leverage this higher and make yields their higher ability can resilience to you and companies ability get those got loans, spreads. lower during in and the performance observe pandemic environment their at

we And so, think the all that's capabilities. in

how how we're in in, we're on terms single team, In meeting obviously, a workflow basis. company local figuring Every of do for processes, going all and safest underwrite to in we're or out our out that we're company, meeting ordinary now, reengineer this environment, to be have what's course. we the our as the to we And the well. working the management team for counterparties investigating

there's lot lot the with our as So, we do able course, There's party et consultant we're with to do in cetera. that technology. of our third a a of cases, could advisors benefit well, certain

areas you'll in having you So, other and those who we're One that leg we managers I in. at seen feel be depth bit transactions as and those sectors break quite have think when healthcare, Having have again, see spaces invested puts on look I comfortable of I'd of resilience where investing spaces in active been software the resilient. a in say in environment. a this like suspect thing well, component as our a portfolio bases we've those heavily to long winning to quite relationships the benefit time, those proven and at more wanting for been us up

Yes. I clearly at weighted yield as And because the would add Brendan as average LIBOR. in the two here, portfolio mean, quick reminder GSBD, just things. just declined Robert, has of I decline so a mentioned,

senior year much importantly, the brought senior further balance the Although down, sort average remember,, here. former leg credit when in see we the to our so the below -- fund now, But had we're we other we to don't of from portfolio expect the on that continues market to upper a floor, yield was -- about our -- be probably -- were lower origination this strategy. not not largely core that about focus middle in were yielding talked We transaction. sheet. And plan when executed kind of our that direct those ago loans were we

monetize And we or so, them plan. that to spread those -- be ways as that get spread brought been the higher into plan able environment. -- sheet, we a to long those as has balance mature, otherwise loans once that our into be higher redeploy repaid -- to we'd And the capital on find continues

done. of a taking that historically And the them sheet it's -- putting and I all we what we’ve on kind turning think balance in -- change into we've the so, these what but of at it's not balance GSBD, assets historically brought done sheet with more

for the The trying people public that is no second doubt in of much they BDCs locked who today higher make our BDC to raise than advantages credit next real facilities point are a a -- pay BDC we've cost five that in frankly financing one public would to including I financing to is have spread going I whereas spread especially think pursue the have private pre-COVID. is strategies that would are our new years, that,

as you're manager you get spread. attractive fund has LIBOR to you trying -- It's revolver, you you're in of get of maturity not today probably you're new and near I Our and a financing, really going promise that level if are credit XXXX. which a to to a a raising know, XXX.X, private anywhere is and going spread.

stay have are who environment going managers their means higher BDC our important, reduces they're that loans real have and haven't that command meet in the of relative to on instead bit to spread on new likely and their liabilities the cost target a spread to So, their to is because much assets order other -- that higher these at locked of benefit private just for in overall likely capital others. to it returns. higher credit borrowing spreads rates, That's low that's as vehicles a

last the So, would we BDCs, in including environment. public underwriting. thing distinct I think pretty just The gives add this a ours regarding, advantage probably that

Brendan loan something to in And of it's exactly in been knew these to environment. said would the any can But a in this environment. gone different think this you a when through all long in the were easiest is prepared tested underwriting pressure that of time, period, decade recessionary very really -- mentioned to anybody period, without having underwrite that performs We've I hit recessionary is kind practical I I on want a just going companies through a a in period. recessionary since here country. a that I you're realities years, how time recessions perform for how XX very, see my remarks and a I company frankly say amplify gone

fresh, rather looking data incredibly are of and just for got we're I that real were lenders underwriting that having recession And and I durable. are allows to think who think our this capabilities. folks resistant fresh stress, distressed all augments fresh we just advantage this we've economic happened, take think us set, high-quality trying what evidence companies very of Now, our -- not

healthcare recession [Technical it from this crucial in Difficulty] to that you because -- does If seem one different impact recession? this normal would as Difficulty] does the Difficulty] [Technical So, efforts as is not around terms is I resilient This of follow-on of Difficulty] [Technical very I be normal [Technical Difficulty] question [Technical depending on resilient. at time, if mean, obviously can, environment healthcare that we the recession, because quite is look not

a right. fair It's sure. recession. things for you’re unusual point and are There are that this about some certainly obviously No,

in that a or retail and there typical sure, impacted. travel more be or most expect to time. obviously differently around what and fear you impacted. on just normally the as people’s recession. real would. way the linked that nature and public companies of in a not dynamics has cyclicality your playing recession, a most that a through more a guess cyclical But, impact I to this of this see you set some to a I on would been affected Oil are lot in be than little this of a of That the leisure being the places the demand expect impact see in said, is ensuing And recession end at that here that just this is of if result in estate which -- Meaning, finger again to recession, it I way you Robert, day, But are are is of -- of it's is would aside, unusual. one, catalyst. business. think In gas wouldn't given the healthcare you regular you and it's that more important dissimilar catalyst to normal, had recession different disruption crowds that But wouldn't the different is say the put healthcare. of end

this is what not sort no seeing well recessions. taken. deeper It's disruption overall, other there in what to But, that is that is point demand think your to dissimilar simply I So, recession. idiosyncrasies that of you’re is can not you see

there any are time, remarks. no this At closing with Please questions. continue further

us call. thank Dennis. all Great. on the Thank joining you for you, And

Thank very As have I feel any a questions, always, additional team. reach the free And you out have week. hope great you please much. to you if

gentlemen, the Thank conference second XXXX Ladies Goldman conclude participation. Inc. quarter does BDC, you Sachs this and for earnings your call.

You now disconnect. may