Gladstone Investment Corporation

Gladstone Investment Corporation is a business development company specializing in providing both debt and equity capital to established lower middle market companies in the United States. As an externally managed, closed-end investment company, its primary function is to support buyouts, recapitalizations, and growth financing for private businesses, typically with revenues between $20 million and $100 million and EBITDA ranging from approximately $4 million to $20 million. The corporation invests across sectors including manufacturing, consumer products, and business and consumer services, targeting companies with robust fundamentals and strong management teams. Gladstone Investment’s portfolio strategy is distinguished by its balance between debt and equity investments, generally aiming for a mix of about 75% debt securities and 25% equity securities at cost, allowing it to generate ongoing current income through interest payments while also pursuing long-term capital appreciation via equity stakes. Investments are typically structured to provide patient, long-term capital, with a flexible approach to ownership, often taking a board seat in portfolio companies and maintaining an average investment horizon of around seven years. By focusing on companies with stable earnings and cash flow, Gladstone Investment plays a vital role in supporting the growth and operational improvement of companies within the U.S. lower middle market, while offering shareholders potential for both yield and capital gains.