Gladstone Investment Corporation - Business Development Company · NASDAQ:GAIN
Gladstone Investment Corporation - Business Development — Gladstone Investment — Investor Day (September 2026)
37 slides from Gladstone Investment Corporation - Business Development's investor day presentation, Sep 9, 2026
Slide 1: Investor Day Presentation September 9, 2026
INVESTOR DAY Presentation September 9, 2026
Slide 2: Legal Disclaimer
Legal Disclaimer This presentation may include forward-looking statements. These forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any futu
Slide 3: Investor Day Presentation Agenda
Investor Day Presentation Agenda INVESTOR DAY Who We Are - Company Overview and Objectives Investment Strategy, Value Creation & Market Update Current Portfolio & Successful Exits Financial Highlights, Shareholder Value & Capital Structure Outlook and Q&A 3 3
Slide 4: Who We Are – Overview & Objectives
Investor Day Presentation WHO WE ARE – OVERVIEW & OBJECTIVES 4
Slide 5: Gladstone Investment | Who We Are
WHO WE ARE – OVERVIEW & OBJECTIVES Gladstone Investment | Who We Are GLADSTONE INVESTMENT SIGNIFICANT CAPITAL EXPERIENCED MANAGEMENT TEAM BACKGROUND (1) RAISED AND DEPLOYED WITH PROVEN TRACK RECORD • Founded in 2005 with the purpose of investing in • Nasdaq symbol “GAIN” | market cap of $616 • Exter
Slide 6: Gladstone Investment | Who We Are
WHO WE ARE – OVERVIEW & OBJECTIVES Gladstone Investment | Who We Are We are increasing our dedicated investment team as the fund continues to grow. David Dullum Taylor Ritchie Erika Highland Christopher Lee Daniel Crump Michael Cueter CEO and President Chief Financial Officer Executive Vice Presiden
Slide 7: Gladstone Investment | Overview: Differentiated buyout structure
WHO WE ARE – OVERVIEW & OBJECTIVES Gladstone Investment | Overview Differentiated buyout structure • Primary equity investor – lead sponsor in majority of prospective transactions, often partnering with existing management teams • Differentiated approach – turnkey provider of the equity & secured de
Slide 8: Gladstone Investment | Overview: Evergreen structure
WHO WE ARE – OVERVIEW & OBJECTIVES Gladstone Investment | Overview Evergreen fund structure creates alignment with management • Investment decisions not guided by fundraising or end-of-fund deadlines unlike a traditional buy-out fund GAIN is differentiated • Provides portfolio company boards and man
Slide 9: Gladstone Investment | Overview
WHO WE ARE – OVERVIEW & OBJECTIVES Gladstone Investment | Overview Delivering to investors consistent and increasing distributions • Senior secured debt provides downside protection, along with the upside potential of GAIN’s equity investments Investment structure creates • No third-party sponsor ri
Slide 10: Upside Potential Driven by Focus on Equity Securities
WHO WE ARE – OVERVIEW & OBJECTIVES Upside Potential Driven by Focus on Equity Securities • GAIN’s equity ownership provides further upside potential to shareholders through prospective Meaningful Equity Component in GAIN Portfolio1 capital gains and other income from successful exits which support s
Slide 11: Valuation Approach for Investments
WHO WE ARE – OVERVIEW & OBJECTIVES Valuation Approach for Investments GAIN Valuation Approach GAIN EBITDA multiples • Total enterprise value (“TEV”) approach • GAIN EBITDA valuation multiples compare favorably to other BDCs o As of 6/30/2026, 100% of GAIN’s investments were valued using a TEV approa
Slide 12: Growing Portfolio
WHO WE ARE – OVERVIEW & OBJECTIVES Growing Portfolio From 4/1/2010 to 6/30/2026, we have: • Made investments in 53 new companies of approximately $1.8 billion1 • Exited 33 companies resulting in a return of proceeds of $1.1 billion1,2 $1,400.0 $1,309.2 $1,282.0 $1,300.0 $1,200.0 $1,100.0 Total inves
Slide 13: History of Strong Monthly and Supplemental Distributions
WHO WE ARE – OVERVIEW & OBJECTIVES History of Strong Monthly and Supplemental Distributions • From inception through 6/30/26, GAIN has paid 252 consecutive monthly distributions to common shareholders • GAIN’s regular annual distribution run-rate has increased 100% from $0.48 per common share in FY1
Slide 14: Investment Strategy, Value Creation & Market Update
Investor Day Presentation INVESTMENT STRATEGY, VALUE CREATION & MARKET UPDATE 14
Slide 15: Investment Focus and Process
INVESTMENT STRATEGY, VALUE CREATION & MARKET UPDATE Investment Focus and Process Investment Focus Target Investment Profile • Lead or co-lead prospective transactions • Focused on cash-flow positive businesses with proven Up to $75 million (typically 70% debt & 30% equity) competitive advantages and
Slide 16: Risk Management and Value Creation
INVESTMENT STRATEGY, VALUE CREATION & MARKET UPDATE Risk Management and Value Creation GAIN takes a long-term approach with a strategy to deploy debt & equity designed to streamline post-close value creation. 1 2 CERTAINTY AND INVESTMENT HORIZON SPEED TO CLOSE No third-party capital required to Long
Slide 17: Value Creation Across the Portfolio
INVESTMENT STRATEGY, VALUE CREATION & MARKET UPDATE Value Creation Across the Portfolio Equity ownership allows GAIN to effect change with its investments. EXPERIENCED SALES AND STRATEGIC PLANNING ADD-ON AND PLATFORM STRATEGIES GOVERNANCE STRUCTURE OPERATIONAL INITIATIVES GAIN helps to establish an
Slide 18: Buyout Market Update
INVESTMENT STRATEGY, VALUE CREATION & MARKET UPDATE Buyout Market Update Increased deal flow leading to more actionable opportunities • GAIN primarily targets two sets of intermediaries to obtain deal flow: o Investment Banks and M&A Advisory Firms – generally through a bidding process that targets
Slide 19: Current Portfolio & Successful Exits
Investor Day Presentation CURRENT PORTFOLIO & SUCCESSFUL EXITS 19
Slide 20: Portfolio is Broad and Diversified
CURRENT PORTFOLIO & SUCCESSFUL EXITS Portfolio is Broad and Diversified 1 MANUFACTURING - $502.1MM2 BUSINESS/CONSUMER SERVICES - $514.8MM3 CONSUMER PRODUCTS - $260.2MM2 1 Portfolio companies as of 6/30/2026, as well as DHE Computer Systems Acquisition, Inc. which was acquired in July 2026. Excludes
Slide 21: Geographic Diversification
CURRENT PORTFOLIO & SUCCESSFUL EXITS Geographic Diversification 1 1 Portfolio companies as of 6/30/2026, as well as DHE Computer Systems Acquisition, Inc. which was acquired in July 2026. Excludes Gladstone Alternative Income Fund. 21
Slide 22: Current Investments by Investment Date
CURRENT PORTFOLIO & SUCCESSFUL EXITS Current Investments by Investment Date Over 50% of GAIN’s portfolio companies have been invested in for over 5 years, supporting our evergreen fund structure. Current Portfolio Composition Portfolio by Vintage1,2 • Diversified across 30 companies, 20 states and $
Slide 23: Historical Exits
CURRENT PORTFOLIO & SUCCESSFUL EXITS Historical Exits1 MANUFACTURING BUSINESS/CONSUMER SERVICES CONSUMER PRODUCTS 1 Illustrative list only. Does not include all 33 historical exits under our buyout strategy. 23
Slide 24: Buyout Exits by Vintage Fiscal Year
CURRENT PORTFOLIO & SUCCESSFUL EXITS Buyout Exits by Vintage Fiscal Year Total Capital Deployed vs. Total Proceeds Received by Investment Vintage1 600 25 500 117 400 $ millions 13 300 43 15 21 74 200 66 410 290 100 197 201 223 199 180 138 - Deployed Proceeds Deployed Proceeds Deployed Proceeds Deplo
Slide 25: Successful Realizations Enhance Shareholder Value
CURRENT PORTFOLIO & SUCCESSFUL EXITS Successful Realizations Enhance Shareholder Value History of exits generating significant capital gains. GAIN’s target investment mix of 70% debt and 30% equity provides potential for high returns through consistent current yield and capital appreciation. Since i
Slide 26: Value Creation and Add-On Strategy
CURRENT PORTFOLIO & SUCCESSFUL EXITS Value Creation and Add-On Strategy We continue to work closely with our portfolio companies to effect meaningful change. SFEG Holdings, Inc. (“SFEG”) Initial Investment: Mathey Investments, Inc. in March 2008, invested $9.6MM debt & $0.8MM equity Subsequent Inves
Slide 27: Financial Highlights, Shareholder Value & Capital Structure
Investor Day Presentation FINANCIAL HIGHLIGHTS, SHAREHOLDER VALUE & CAPITAL STRUCTURE 27
Slide 28: Capital Structure: Conservative Approach
FINANCIAL HIGHLIGHTS, SHAREHOLDER VALUE & CAPITAL STRUCTURE Capital Structure: PUBLICLY TRADED NOTES Conservative Approach • GAINZ: $134.6MM of 4.875% 2028 Notes • GAIN maintains a conservative balance sheet with low • GAINI: $126.5MM of 7.875% 2030 Notes leverage and available liquidity to support
Slide 29: Continuous NAV Growth Since FY 2011
FINANCIAL HIGHLIGHTS, SHAREHOLDER VALUE & CAPITAL STRUCTURE Continuous NAV Growth Since FY 2011 • Continuous growth in overall NAV since FY 2011, driven by diligent growth and value creation in investment portfolio • Significant NAV per share growth to $16.24 at 6/30/2026 from $9.00 at 3/31/2011 $1,
Slide 30: Investment Income Growth Since FY 2011
FINANCIAL HIGHLIGHTS, SHAREHOLDER VALUE & CAPITAL STRUCTURE Investment Income Growth Since FY 2011 • Significant growth in Investment Income since FY 2011, driven by growth in investment portfolio, increased yields and other income. • Other income is comprised of dividends on preferred investments a
Slide 31: Financial Highlights
FINANCIAL HIGHLIGHTS, SHAREHOLDER VALUE & CAPITAL STRUCTURE Financial Highlights1 THREE MONTHS ENDED FISCAL YEAR ENDED JUNE 30, 2026 MARCH 31, 2026 MARCH 31, 2025 MARCH 31, 2024 MARCH 31, 2023 Net investment income (loss) (NII) $ 15,927 $ (3,752) $ 28,095 $ 21,777 $ 37,000 (+) Capital gains-based in
Slide 32: History of Driving High Shareholder Returns
FINANCIAL HIGHLIGHTS, SHAREHOLDER VALUE & CAPITAL STRUCTURE History of Driving High Shareholder Returns Long-term return on equity outperforming compared to industry peer group.1 Return on Equity 6/30/2026 35% 30% 29% 25% 21% 20% 19% 16% 15% 9% 9% 9% 9% 10% 8% 8% 6% 5% 5% 0% 1 Year 3 Years 5 Years 1
Slide 33: History of Driving High Shareholder Returns
FINANCIAL HIGHLIGHTS, SHAREHOLDER VALUE & CAPITAL STRUCTURE History of Driving High Shareholder Returns Greater long-term total return compared to BDC peer group.1 1-, 3-, 5- AND 10-YEAR TOTAL RETURNS OF 16%, 71%, 87% AND 474% VS. BDC INDUSTRY PEERS OF (12)%, 17%, 28% AND 105% 10-Year Total Return 5
Slide 34: History of Strong Value Creation
FINANCIAL HIGHLIGHTS, SHAREHOLDER VALUE & CAPITAL STRUCTURE History of Strong Value Creation • Since 3/31/11, GAIN has generated $24.12 per share of cumulative shareholder value through NAV appreciation, consistent monthly distributions and significant supplemental distributions, representing total
Slide 35: Outlook and Q&A
Investor Day Presentation OUTLOOK AND Q&A 35
Slide 36: Continue to Execute on Strategy
OUTLOOK Continue to Execute on Strategy EXECUTE ON BUYOUT STRATEGY • Expand portfolio through attractive investments by continuing to focus on owner founder businesses in the lower middle market, continuing to invest in a “one-stop” buyout providing a mix of capital of approximately 70% debt and 30%
Slide 37: Corporate Data
Corporate Data Key Executive Officers Research Coverage Websites Independent Directors David Dullum B. Riley Securities Gladstone Investment: Michela A. English CEO & President Sean-Paul Adams www.gladstoneinvestment.com Katharine C. Gorka Clear Street Erika Highland Mickey M. Schleien Investment Ad