Business development company (BDC) providing debt and equity financing to lower middle-market companies.
Gladstone Capital Corporation operates as a prominent business development company specializing in a diverse range of financial services tailored for lower middle market businesses in the United States. Established as a business development company, Gladstone Capital focuses on providing growth capital, facilitating add-on acquisitions, managing change of control transactions, and implementing buy-and-build strategies. The firm's investment portfolio includes a variety of debt instruments such as senior term loans, revolving loans, secured first and second lien term loans, unitranche loans, senior subordinated loans, junior subordinated loans, as well as equity investments in forms like common stock, preferred stock, and warrants.
In addition to its focus on debt and equity investments, Gladstone Capital Corporation engages in private equity transactions involving acquisitions, buyouts, recapitalizations, and debt refinancing for small to medium-sized enterprises across diverse sectors. The company maintains an industry-agnostic approach, targeting businesses involved in sectors such as business services, manufacturing, industrial products, consumer goods, energy services, transportation, healthcare, education services, specialty chemicals, media, communications, aerospace, and defense. With investment criteria typically ranging between $7 million to $30 million for companies generating sales between $20 million to $150 million and EBITDA between $3 million to $25 million, Gladstone Capital seeks to acquire minority stakes and facilitate exits through strategic acquisitions, initial public offerings, or other capital market transactions.
As the financial landscape evolves, Gladstone Capital Corporation has expressed interest in exploring opportunities within the cryptocurrency sector. This strategic move reflects the company's adaptive approach to integrating digital assets into its investment strategy, potentially enhancing portfolio diversification and exploring new avenues for growth. By considering cryptocurrency investments, Gladstone Capital aims to leverage emerging technologies to provide innovative financial solutions and expand its market presence in the evolving digital economy. This initiative underscores the firm's commitment to staying ahead in the competitive landscape of business development and investment management.