Upside of down

18 March 2015 By Antony Currie Follow @AntonyMCurrie

In what could be seen as a bad ad for its own bankers and lead underwriter BofA, shares of the middle-market lender fell as much as 2.5 pct. Deal fees typically drag on business development company IPOs, however. And unlike some rivals, Goldman’s trades above its net asset value.

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Shares in Goldman Sachs Business Development Corp fell as much as 2.5 percent in the company’s public market debut on March 18. The unit, set up in 2012, provides mostly debt financing, with some equity investments, to middle-market companies. It has so far invested in 34 companies.

Goldman Sachs Asset Management runs the fund and Goldman Sachs owned about a fifth of the BDC before the initial public offering. That now stands just above 15 percent thanks to dilution from the new shares issued.

The initial public offering had been priced at $20 a share, the lower end of the $20-$21 range. It valued the company at $708 million. Some 6 million shares were sold in the IPO, or about 17 percent of the company.

By 1:15 p.m. Eastern on March 18, shares traded at $19.75, down 1.25 percent. At the end of 2014, Goldman Sachs BDC’s net asset value stood at $19.56 a share.

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