Regarding the specific gelding in OP - that would not bother me at all. 4th generation is far enough back.
As a whole, that kind of inbreeding (called linebreeding) is advantageous when you are breeding to produce a specific trait. Could be jumping ability. Could be gaiting. Could even be color.
The only time linebreeding is a problem is when there are unsavory characteristics in the individual that is being linebred or, that individual carries genetic disorders that are not outwardly apparent (either because they don’t occur until later in life, or they are recessive, etc) and that particular individual either becomes extremely prolific, or the gene-pool is very small (and/or closed book). When that happens there is diversity collapse in the gene pool and that can be quite negative, as it becomes difficult to breed an individual free of defects and/or free of being affected by said hereditary disorder.
This matters with several WB, Arabian, QH and TB stallions that you should not line-breed to, because they have hereditary disorders (either a-dominant or recessive, or diseases like DSLD and cerv-arthritis which are understood to be hereditary but the mode of inheritance is not yet completely understood) that will affect the health of the offspring. Examples would be HYPP (QHS), SCID & CA (Arabians), cervical arthritis/“wobblers” (WBs & TBs), DSLD (all breeds), etc.
Considering most times, you don’t know until it is too late in these cases, it generally is something that should be kept in the back of your mind if you are a breeder, and looking at the registry’s future. CdB is already so prolific in the HOL studbook it’s hard to find a horse that doesn’t have him in the pedigree. This is not necessarily bad as the formula of linebreeding to him is quite proven for exceptional jump… and I believe by now, if he was producing defective horses, we would have realized it.
Food for thought would be looking at other registries or breeds; excessive linebreeding is how DIM proliferated in Dobermans…
That being said - if you are looking at the (mature) healthy individual in front of you of that linebreeding pairing, and that horse appears healthy and sound, then the linebreeding likely was not a detractor.