Business development company (BDC) investing in debt and equity securities of small and medium-sized businesses.
Gladstone Investment Corporation operates as a business development company specializing in investments within the lower middle market segment. It focuses on providing financial solutions such as buyouts, refinancing existing debt, and various forms of senior and subordinated debt securities, including senior loans, term loans, lines of credit, and mezzzanine loans. The company also invests in limited liability company interests, warrants, and options, aiming to support mature stage companies rather than startups.
The investment strategy of Gladstone Investment Corporation targets sectors including manufacturing, consumer products, and business/consumer services throughout the United States. It prioritizes companies with annual revenues ranging from $20 million to $100 million and EBITDA between $3 million and $20 million. The fund typically makes debt investments ranging from $5 million to $30 million and equity investments from $10 million to $40 million, seeking minority equity ownership and often securing board seats in its portfolio companies.
Founded with a focus on long-term value creation, Gladstone Investment Corporation maintains an average investment horizon of seven years. It aims to exit investments through strategic avenues such as sales, recapitalizations, initial public offerings (IPOs), or sales to third parties, ensuring optimal returns for its shareholders while supporting the growth and stability of its portfolio companies.