Gladstone Investment Corporation

Gladstone Investment Corporation is a business development company that specializes in providing financing to lower middle market, mature stage companies in the United States. The company focuses on buyouts and refinancing existing debt. Its investments include senior debt securities such as senior loans, senior term loans, lines of credit, and senior notes, as well as senior subordinated debt securities like senior subordinated loans and senior subordinated notes. It also invests in junior subordinated debt securities, including subordinated notes and mezzanine loans, and takes limited liability company interests, warrants, or options. Gladstone Investment Corporation does not invest in start-ups. The fund targets companies in the manufacturing, consumer products, and business/consumer services sectors. It seeks to make debt investments ranging from $5 million to $30 million and equity investments between $10 million and $40 million in companies with EBITDA from $4 million to $15 million. The company seeks both minority equity ownership, often preferring a board seat, and majority stakes in its portfolio companies. Investments are typically held for seven years, with exits through sale or recapitalization, initial public offering, or sale to a third party.