Gladstone Capital (NASDAQ:GLAD) (NASDAQ:GLAD) is a externally managed business development company that provides debt and equity financing solutions to lower middle-market companies in the United States. Formed in 2009 and headquartered in McLean, Virginia, the firm specializes in offering flexible, customized capital structures designed to support management buy-outs, growth initiatives, acquisitions and recapitalizations. As a regulated investment company under the Investment Company Act of 1940, Gladstone Capital aims to deliver attractive risk-adjusted returns to its shareholders through current income and potential capital appreciation.
The company’s primary activities include originating secured and unsecured senior loans, second-lien debt, subordinated debt, mezzanine capital and, in selected transactions, equity co-investments. Gladstone Capital typically targets U.S. companies with annual earnings before interest, taxes, depreciation and amortization (EBITDA) in the range of $3 million to $20 million and enterprise values between $15 million and $150 million. Industries of focus span business services, healthcare, manufacturing, distribution and selected niche sectors where management teams seek a reliable capital partner to facilitate strategic objectives.
Over its history, Gladstone Capital has built a diversified portfolio of investments, balancing credit-oriented debt instruments with selective equity participation to align its interests with those of portfolio company stakeholders. The company often works alongside private equity sponsors and family-owned businesses, emphasizing collaborative underwriting, active portfolio management and disciplined risk controls. Investments are monitored through regular financial reporting, board representation or observer rights, and engagement with executive management teams to support operational improvement and growth.
Gladstone Capital is managed by Gladstone Management Corporation (GMC), an affiliate of Gladstone Investment Corporation, under the leadership of David Gladstone, founder and chairman of GMC. The firm’s senior management team combines extensive experience in middle-market lending, private equity and asset management. Through its long-standing platform, Gladstone Capital strives to maintain a consistent investment approach, transparent governance practices and alignment of interests with its investors and portfolio companies.
