Gladstone Capital Corporation (Nasdaq: GLAD) is a specialized business development company (BDC) focused on investing in debt and equity securities of established lower middle-market companies across the United States. The company's investment portfolio primarily consists of secured first and second lien term loans, senior and junior subordinated loans, and mezzanine debt, alongside selective equity investments such as common stock, preferred stock, and warrants. Gladstone Capital targets companies with revenues between $20 million and $150 million and EBITDA between $3 million and $25 million. The firm is industry-agnostic, with investments spanning sectors like business services, manufacturing, healthcare, transportation, and aerospace and defense. As an externally managed BDC, its investment activities are directed by its affiliate, Gladstone Management Corporation. The company generates revenue primarily through interest income on its debt investments, as well as dividend income, prepayment fees, and capital gains from its equity holdings. By providing customized financing solutions for growth, acquisitions, and recapitalizations, Gladstone Capital aims to generate stable current income to fund monthly cash distributions to its stockholders while seeking long-term capital appreciation.
