Gladstone Investment Corporation

Ticker: GAIN
As of March 31, 2026

Business model and structure

• Closed-end, non-diversified management investment company that elects BDC status under the Investment Company Act of 1940 and RIC status under the Internal Revenue Code.
• Externally managed by Gladstone Investment Adviser, LLC (and affiliates) under an investment advisory and management agreement; administration provided by Gladstone Administration, LLC.
• Investment focus: debt and equity securities of established U.S. private businesses in the Lower Middle Market, generally with annual EBITDA of $5 million to $25 million.
• Primary objective: generate current income from debt investments and achieve long-term capital appreciation from equity investments.
• Targeted portfolio mix (at cost): approximately 70% debt and 30% equity.
• Typical investment size in a portfolio company: up to $75 million, with variations based on total assets and capital.

Current portfolio and scale

• Portfolio companies: 29 portfolio companies located in 20 U.S. states and Canada.
• Inception investments: 66 companies invested in from 2005 through March 31, 2026 (excluding syndicated loans).
• Five largest investments (SFEG Holdings, The E3 Company, Schylling, Brunswick Bowling, Detroit Defense): $582.6 million at fair value, representing 44.5% of total portfolio fair value as of 3/31/2026.
• Portfolio value and composition (as of 3/31/2026):
  • Total investments at fair value: $1,309.2 million
  • Debt investments: $669.8 million fair value (70.8% of cost; 51.2% of fair value)
  • Equity and equivalents: $639.4 million fair value (48.8% of total fair value)
  • Debt (cost) vs. equity (cost) mix: debt 70.8% of cost; equity 29.2% of cost
• Industry and geographic distribution by fair value (as of 3/31/2026):
  • Top five industries: Machinery (Non-Agriculture/Non-Construction/Non-Electronic) 19.8%; Diversified/Conglomerate Services 14.4%; Aerospace and Defense 13.4%; Home and Office Furnishings, Housewares, and Durable Consumer Products 12.7%; Oil and Gas 9.6%.
  • U.S. regional exposure by fair value: South 49.6%; West 17.3%; Midwest 16.6%; Northeast 14.8%; Canada 1.7%.

Financial position and capital structure

• Total assets: $1.309 billion (approximate)
• Net assets (NAV basis): $668.2 million (approximate)
• Outstanding indebtedness (cost): $572.9 million (approximate)
• Credit Facility (Glasstone Business Investment, LLC as borrower): outstanding debt $23.9 million; facility maximum $300 million; revolving period ending October 30, 2026.
• Asset coverage for senior indebtedness: 213.8% (above the 150% regulatory minimum).
• Portfolio liquidity and qualifying assets: 97.8% of assets classified as qualifying assets under the 1940 Act (as of 3/31/2026).

Fees, revenues, and income

• Management and administration
  • Base management fee: 2.0% per annum of average gross assets (includes assets funded by borrowings; cash not invested is excluded). Paid quarterly to the Adviser.
  • Administration fee: paid to the Administrator; 2026: $2.0 million; 2025: $1.9 million; 2024: $1.8 million.
  • Loan servicing fee: Adviser services loans under the Credit Facility for which a 2.0% annual fee is earned; this fee is credited 100% against the base management fee.
• Incentive (performance) fees
  • Income-based incentive fee: based on pre-incentive net investment income above a hurdle, with a tiered allocation (0% if below hurdle; 100% of excess up to a capped level; 20% of excess above that).
  • Capital gains-based incentive fee: 20% of realized capital gains, less realized losses and unrealized depreciation, measured at year-end and paid in arrears; GAAP accruals are recorded.
  • GAAP accruals for capital gains-based incentive fees (years ended 3/31): 2026 — $38.0 million; 2025 — $7.4 million; 2024 — $12.7 million.
• The Adviser credits 100% of many ancillary fees against the base management fee (subject to certain cost recovery provisions). The compensation structure aligns adviser revenue with asset growth and capital gains.

Employees

• 78 full-time employees across the Adviser and Administrator as of March 31, 2026 (these individuals are not employees of the company itself):
  • 16 executive management
  • 22 accounting, administration, compliance, HR, legal, treasury
  • 40 investment management, portfolio management, and due diligence

Operations and risk management

• The Adviser and Administrator conduct monitoring of portfolio companies, due diligence, valuation, governance, risk management, and compliance.
• Board oversight includes independent directors and a valuation designee; quarterly fair value assessments are performed with independent valuation inputs.
• Risk controls focus on leverage, asset coverage, liquidity, valuation, and regulatory compliance as a BDC and RIC.

Regulation and strategy highlights

• The company maintains BDC status and aims to retain RIC status, meeting required diversification and distribution tests under the 1940 Act and the Internal Revenue Code.
• Investment focus remains on Lower Middle Market U.S. businesses. Equity realizations are expected through mergers, acquisitions, recapitalizations, or IPOs; debt liquidity depends on individual investment terms.
• The company has an approved Co-Investment Order with affiliates and may co-invest under specified conditions with related funds.

All figures are as of or for the fiscal year ended March 31, 2026, unless otherwise stated.