Gladstone Investment Corporation - Business Development Company · NASDAQ:GAIN
Gladstone Investment Corporation - Business Development — Gladstone Investment — Investor Day (September 2025)
37 slides from Gladstone Investment Corporation - Business Development's investor day presentation, Sep 8, 2025
Slide 1: Investor Day
INVESTOR DAY Presentation September 8, 2025
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 Financial Highlights, Shareholder Value & Capital Structure Investment Strategy, Value Creation & Market Update Current Portfolio & Successful Exits 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 • Nasdaq symbol “GAIN” | market cap of $533 • External
Slide 6: Gladstone Investment | Overview
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 7: Gladstone Investment | Overview
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 versus a traditional buy-out fund GAIN is differentiated • Provides portfolio company boards and man
Slide 8: 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 9: 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 10: Growing Portfolio
WHO WE ARE – OVERVIEW & OBJECTIVES Growing Portfolio From 4/1/2010 to 6/30/2025, we have: • Made investments in 51 new companies of approximately $1.6 billion1 • Exited 33 companies for a return of proceeds of $1.1 billion1,2 $1,100.0 $1,036.7 $1,000.0 $974.3 $920.5 $900.0 Total investments, at fair
Slide 11: History of Strong Monthly and Supplemental Distributions
WHO WE ARE – OVERVIEW & OBJECTIVES History of Strong Monthly and Supplemental Distributions • From inception through 6/30/25, GAIN has paid 240 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 12: Financial Highlights, Shareholder Value & Capital Structure
Investor Day Presentation FINANCIAL HIGHLIGHTS, SHAREHOLDER VALUE & CAPITAL STRUCTURE 12
Slide 13: 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 $12.99 at 6/30/2025 from $9.00 at 3/31/2011 $1,
Slide 14: 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 15: Successful Realizations Enhance Shareholder Value
FINANCIAL HIGHLIGHTS, SHAREHOLDER VALUE & CAPITAL STRUCTURE Successful Realizations Enhance Shareholder Value History of exits generating significant capital gains. GAIN’s target investment mix of 75% debt and 25% equity provides potential for high returns through consistent current yield and capita
Slide 16: Financial Highlights
FINANCIAL HIGHLIGHTS, SHAREHOLDER VALUE & CAPITAL STRUCTURE Financial Highlights1 THREE MONTHS ENDED FISCAL YEAR ENDED JUNE 30, 2025 MARCH 31, 2025 MARCH 31, 2024 MARCH 31, 2023 MARCH 31, 2022 Net investment income (NII) $ 9,088 $ 28,095 $ 21,777 $ 37,000 $ 14,990 (+) Capital gains-based incentive f
Slide 17: 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 6/30/2025 18% 17% 16% 15% 14% 14% 13% 12% 12% 11% 10% 10% 9% 9% 9% 9% 8% 8% 6% 4% 2% 0% 1-Year 3-Years 5
Slide 18: 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 5- AND 10-YEAR TOTAL RETURNS OF 147% AND 395% VS. BDC INDUSTRY PEERS OF 130% AND 140% 5-Year Total Return 10-Year Total Return 550% 320%
Slide 19: Capital Structure: Conservative Approach
FINANCIAL HIGHLIGHTS, SHAREHOLDER VALUE & CAPITAL STRUCTURE Capital Structure: Conservative Approach PUBLICLY TRADED NOTES - $463.8MM • GAINN: $127.9MM of 5.00% 2026 Notes • GAIN maintains a conservative balance sheet with low leverage and available liquidity to support needs of the • GAINZ: $134.6M
Slide 20: Investment Strategy, Value Creation & Market Update
Investor Day Presentation INVESTMENT STRATEGY, VALUE CREATION & MARKET UPDATE 20
Slide 21: Investment Focus and Process
INVESTMENT STRATEGY, VALUE CREATION & MARKET UPDATE Investment Focus and Process Deal Sourcing • Source opportunities from investment banks, M&A advisory firms, and industry executives Driving performance with • Regionally focused sourcing strategy, spearheaded by senior members of the investment te
Slide 22: Investment Focus and Process
INVESTMENT STRATEGY, VALUE CREATION & MARKET UPDATE Investment Focus and Process Investment Focus • Target stable lower middle market companies with EBITDA of $4 – $15 million • Investment size (debt & equity) generally up to $75 million (typically 25% equity & 75% debt) • Lead or co-lead prospectiv
Slide 23: 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 24: Value Creation and Add-On Strategy
INVESTMENT STRATEGY, VALUE CREATION & MARKET UPDATE Value Creation and Add-On Strategy We continue to work closely with our portfolio companies to effect meaningful change. NIELSEN-KELLERMAN ACQUISITION CORP. (“Nielsen-Kellerman”) Acquired: December 2024 Initial Investment Size: Aggregate investment
Slide 25: 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 26: Value Creation and Add-On Strategy
INVESTMENT STRATEGY, VALUE CREATION & MARKET UPDATE Value Creation and Add-On Strategy We continue to work closely with our portfolio companies to effect meaningful change. DETROIT DEFENSE, INC. (“Detroit Defense”) Acquired: December 2024 Initial Investment Size: Aggregate investment of $78.7MM ($61
Slide 27: 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 28: Recent Buyout Investments
INVESTMENT STRATEGY, VALUE CREATION & MARKET UPDATE Recent Buyout Investments We continue to actively invest in new buyout opportunities and strategic investments in existing portfolio companies. SMART CHEMICAL SOLUTIONS, LLC SUN STATE NURSERY & LANDSCAPING, LLC Acquired: May 2025 Acquired: May 2025
Slide 29: Recent Buyout Investments
INVESTMENT STRATEGY, VALUE CREATION & MARKET UPDATE Recent Buyout Investments We continue to actively invest in new buyout opportunities and strategic investments in existing portfolio companies. GLOBAL GRAB TECHNOLOGIES, INC. Acquired: July 2025 Investment Size: $67.6MM ($46.5MM debt & $21.1MM equi
Slide 30: Current Portfolio & Successful Exits
Investor Day Presentation CURRENT PORTFOLIO & SUCCESSFUL EXITS 30
Slide 31: Portfolio is Broad and Diversified
CURRENT PORTFOLIO & SUCCESSFUL EXITS Portfolio is Broad and Diversified 1 MANUFACTURING - $333.2MM2 BUSINESS/CONSUMER SERVICES - $563.8MM3 CONSUMER PRODUCTS - $202.3MM2 1 Portfolio companies as of 6/30/2025, as well as Global GRAB Technologies, Inc. which was acquired in July 2025. Excludes Gladston
Slide 32: Geographic Diversification
CURRENT PORTFOLIO & SUCCESSFUL EXITS Geographic Diversification 1 1 Portfolio companies as of 6/30/2025, as well as Global GRAB Technologies, Inc. which was acquired in July 2025. Excludes Gladstone Alternative Income Fund. 32
Slide 33: Historical Exits
CURRENT PORTFOLIO & SUCCESSFUL EXITS Historical Exits MANUFACTURING BUSINESS/CONSUMER SERVICES CONSUMER PRODUCTS 33
Slide 34: Recent Successful Exits
CURRENT PORTFOLIO & SUCCESSFUL EXITS Recent Successful Exits We continue to exit mature investments, generating meaningful realized capital gains. NOCTURNE LUXURY VILLAS, INC. COUNSEL PRESS HOLDINGS, INC. Initial Investment: June 2021, invested $2.9MM debt & $6.6MM equity Initial Investment: March 2
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 • Drive portfolio company value creation through active ownership Disciplined underwriting and continued portfolio performance allows GAIN to PROVIDE STRONG AND GROWING DISTRIBUTIONS
Slide 37: Corporate Data
Corporate Data Key Executive Officers Research Coverage Websites Independent Directors David Gladstone B. Riley Securities Gladstone Investment: Michela A. English Chairman & CEO Sean-Paul Adams www.gladstoneinvestment.com Katharine C. Gorka Clear Street David Dullum Mickey M. Schleien Investment Ad