RichVintage Co-authored with Hidden Opportunities In today's dynamic financial landscape, investors are constantly seeking avenues to optimize returns while mitigating risks. Enter baby bonds, a less understood (and, as a result, overlooked) yet profoundly attractive asset class, particularly in the current high interest-rate environment. Baby bonds, also known as exchange-traded debt securities, offer a compelling proposition for income investors seeking stable returns with relatively lower risk exposu ...

da-kuk Welcome to another installment of our BDC Market Weekly Review, where we discuss market activity in the Business Development Company ("BDC") sector from both the bottom-up - highlighting individual news and events - as well as the top-down - providing an overview of the broader market. We also try to add some historical context as well as relevant themes that look to be driving the market or that investors ought to be mindful of. This update covers the period through the second week of April. Mar ...

Adam Gault Welcome to another installment of our BDC Market Weekly Review, where we discuss market activity in the Business Development Company ("BDC") sector from both the bottom-up - highlighting individual news and events - as well as the top-down - providing an overview of the broader market. We also try to add some historical context as well as relevant themes that look to be driving the market or that investors ought to be mindful of. This update covers the period through the first week of April. ...

Hiroshi Watanabe In December last year, I wrote an article on Gladstone Capital (NASDAQ:GLAD) issuing a buy rating due to truly defensive portfolio and attractive yield generation. In a nutshell, the thesis boiled down to the following drivers: Solid track record - Based on the historical performance, we can identify GLAD's ability to deliver outsized returns even in upwards trending markets, where theoretically BDCs that are heavily skewed towards defense should underperform the overall BDC space. Heal ...

Pixelimage Gladstone Capital Corporation (NASDAQ:GLAD) reported decent dividend payout metrics for the most recent quarter and managed to grow its net asset value by $0.22 per share as well. The business development company has a growing loan portfolio, concentrated in First Liens, and Gladstone Capital's originations got a boost in the last quarter from higher net new investment activity. The dividend seems to be well-covered here with net investment income, but I am on the fence with regard to the BDC's n ...

Colleen Michaels/iStock Editorial via Getty Images I rated Gladstone Capital (NASDAQ:GLAD) as a buy when I last covered the business development company. Total returns since then have been marginally positive, at just over 6%. The BDC just reported fiscal 2024 first-quarter earnings, ending December 31st, 2023, with total and net investment income underperforming versus consensus estimates. Total investment income for the first quarter at $23.2 million dipped by $600,000 sequentially but grew by 20.4% o ...

DNY59 Being an income investor can be rewarding in many ways. While I now have a fair amount of income from investments to cover a good portion of my monthly recurring expenses like utilities, food, and entertainment, it would have been daunting if that was my goal from the outset. That's why I'd always recommend to start small, like being able to cover daily meals or the cost of gas/EV charging, and build from there. By setting mini goals like these, one may be surprised to find how quickly these achieveme ...

Portfolio Overview - Gladstone Capital's portfolio reached $750 million in fair value, diversified across 51 companies and 12 industries as of December 31, 2023[11, 43] - The investment portfolio is conservatively structured, with 90% in secured loans and 73% in lower-risk 1st lien loans[11, 34] - The weighted average leverage across the core proprietary loan portfolio is approximately 40x EBITDA[11, 34, 44] - The portfolio generates an attractive weighted average yield of 139% and supports an annual cash distribution of $099 per share[11] Financial Performance - New investments totaled $58 million during the quarter, including $47 million in add-on investments to existing portfolio companies[31] - Net originations for the quarter were strong at $36 million[31, 35] - Net investment income (NII) for the quarter increased 86% to $119 million, or $0274 per share, covering the current recurring common stock distribution by over 110%[34] - Total assets increased to $7666 million, with $750 million in investments at fair value as of December 31, 2023[58] Strategy and Market Dynamics - Gladstone Capital targets companies with $3-25 million in EBITDA and investments of $8-40 million[10, 24] - Approximately 78% of the portfolio is backed by private equity sponsors as of December 31, 2023[24] - Over 90% of private debt funds raised exceed $1 billion and are managed by firms focused on larger borrowers (>$25 million EBITDA)[30]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark one): ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 2023 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ______ TO _______ COMMISSION FILE NUMBER: 814-00237 GLADSTONE CAPITAL CORPORATION (Exact name of registrant as specified in its charter) ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 __________________________ FORM 10-K __________________________ (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 30, 2023 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to __________ Commission file number 814-00237 __________________________ GLADSTON ...