Gladstone Capital
Gladstone Capital Corporation (NASDAQ: GLAD) is a publicly traded Business Development Company founded in 2001 that provides debt and equity financing to lower middle market U.S. businesses and pays monthly distributions to stockholders under a tax pass-through structure.
- Company typePublic
- Founded2001
- HeadquartersMclean, United States
- Headcount51–100
- GTM typeB2B
- OfferingServices
What Gladstone Capital does
Gladstone Capital Corporation (NASDAQ: GLAD) is a publicly traded Business Development Company (BDC) regulated under the Investment Company Act of 1940 and headquartered at 1521 Westbranch Drive, Suite 100, McLean, Virginia. Founded in 2001 by David Gladstone, the company invests in debt and equity securities of lower middle market businesses in the United States, with a portfolio historically weighted toward healthcare, manufacturing, and conglomerate borrowers and minimal software exposure. As of Q1 FY2026 (December 31, 2025) the loan book stood at $772.3M with a weighted average portfolio yield of 12.2%, and FY2025 total investment income was $89.1M, down 7.8% year-over-year on Federal Reserve rate cuts. The company maintains modest leverage at approximately 93% of NAV and reported a non-accrual rate of 3.4% of cost. The business is run by an internally managed platform that originates, underwrites, and services investments through a sales-led motion targeting private equity sponsors and business owners seeking growth capital, acquisitions, or recapitalizations.
The company distributes substantially all taxable income to stockholders under the pass-through framework of the Small Business Investment Incentive Act of 1980, paying a monthly cash distribution currently set at $0.15 per common share ($0.45 quarterly) following a Q4 FY2025 cut from $0.165 per share, and $0.130208 per share on its Series A Preferred Stock. Distribution yield stood at 8.8% per the Q1 FY2026 earnings call. The investor base spans retail shareholders and named institutional holders including UBS Group AG, Two Sigma Investments LP, D.A. Davidson & Co., and Goldman Sachs. Capital formation is conducted through public stock markets, a distribution-reinvestment program, and a 2025 SEC Co-Investment Order that broadens deal-flow capacity.
In March 2026 founder David Gladstone was succeeded as CEO by Robert Marcotte, and in June 2026 the board was expanded from seven to eight members with the addition of George "Chip" Stelljes III. FY2025 originations totaled $310.7M across 15 new portfolio companies plus $86.1M of follow-ons, and the company realized a $59.3M gain on the sale of Antenna Research Associates. In Q1 FY2026 management deployed $99.1M in new investments, marking its first material allocation to AI and data center-related sectors and signaling a strategic vertical expansion under the new leadership. As of Q1 FY2026 NAV per share was $21.13 (down from $21.51 a year prior) and the stock traded at a 17% discount to NAV, the deepest such level in five years.
Gladstone Capital firmographics
Firmographics- Name
- Gladstone Capital
- Legal name
- Gladstone Capital Corporation
- Website
- https://ir.gladstonecapital.com
- Company type
- Public
- Founded year
- 2001
- Operating status
- Operating
- Headcount range
- 51–100 employees
- Short description
- Gladstone Capital Corporation (NASDAQ: GLAD) is a publicly traded Business Development Company founded in 2001 that provides debt and equity financing to lower middle market U.S. businesses and pays monthly distributions to stockholders under a tax pass-through structure.
- Ownership category
- akta.pro rank
Gladstone Capital industry classification
Industry- Product category
- Middle Market Lending / Business Development Company
- NAICS
- Miscellaneous Financial Investment Activities (523999)
- SIC
- Miscellaneous Business Credit Institution (6159)
- akta.pro primary industry
- BDC / Public Vehicle Venture Debt Providers (FSANAIAC)
Keywords
Where Gladstone Capital is headquartered
LocationHeadquarters
- HQ city
- Mclean
- HQ country
- United States
- HQ region
- North America
Offices1 record
Markets served
Gladstone Capital business model
Business model- GTM type
- B2B
- Offering type
- Services
- Cost components
- Operations, Personnel, Others
Revenue model
- Interest Income from Lending: Generates income by lending to mid-sized companies at above-market interest rates, averaging around 10.3%. Income is passed through to shareholders under the Small Business Investment Incentive Act of 1980.
- Dividend Distributions: Pays monthly cash distributions to stockholders. Current monthly dividend of $0.15 per share, totaling $0.45 per quarter. Reduced from $0.165 per share starting Q4 2025 due to yield compression.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Subscription | Monthly | Monthly Dividend |
Go-to-market motion1 record
Distribution channels2 records
Marketing channels4 records
Gladstone Capital product offering
Product offeringCore offering
Gladstone Capital Corporation is a publicly traded Business Development Company (BDC) that invests in debt and equity securities of lower middle market businesses in the United States. Its debt investments consist primarily of secured loans to small and medium-sized U.S. businesses, generating interest income at a weighted average yield of approximately 12.2%. The company also offers a Series A Preferred Stock security and pays monthly cash distributions to its stockholders under the Small Business Investment Incentive Act of 1980.
Product overview
Gladstone Capital Corporation (GLAD) is a publicly traded Business Development Company (BDC) that provides debt and equity financing solutions to lower middle market businesses in the United States. The company pays monthly cash distributions to stockholders and invests primarily in secured loans to mid-sized companies. The company's product offering consists of its core investment management services, including secured debt investments, equity investments, and its Series A Preferred Stock as a separate security offering.
Differentiator
Problem solved
Functional benefit
Products and services
- Secured Debt Investments (Loans) Secured debt investments provided to lower middle market U.S. businesses across healthcare, manufacturing, conglomerate, and more recently AI and data center sectors. The portfolio had a weighted average principal balance of $772.3 million as of Q1 2026 and a weighted average yield of approximately 12.2%. Designed for private equity sponsors and business owners seeking growth capital, acquisition financing, or recapitalizations.
- Equity Investments Equity co-investments in lower middle market U.S. businesses, providing Gladstone Capital with capital appreciation and realized gains on portfolio company exits (e.g., $59.3 million realized gain from the sale of Antenna Research Associates, Inc.). Designed to complement the company's secured debt offerings and provide upside participation alongside private equity sponsors and business owners.
- Series A Preferred Stock A preferred equity security issued by Gladstone Capital that pays $0.130208 per share monthly, offered as a separate security class for investors seeking fixed-income-like exposure to the BDC's portfolio.
- Common Stock (NASDAQ: GLAD) with Monthly Distributions
Quantifiable outcome
- 9.5% dividend yield
- +2 more outcomes
Companies that use Gladstone Capital
Customer profileSegments4 records
Ideal customer profiles1 record
Gladstone Capital technology and API
TechnologyTechnology focussed No
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Gladstone Capital partnerships and signals
Strategic signalPartnerships
One partnership is on record.
- AI and Data Center SectorscoreGladstone Capital funded $99.1 million in new investments including AI and data center-related sectors in Q1 2026, representing expansion into technology-related lending.
Scale indicators17 records
Recent moves6 records
Expansion highlights4 records
Gladstone Capital competitors and assessment
Company assessmentDirect peers
- Gladstone Investment Corporation: Sister company in the Gladstone family of funds, also publicly traded on NASDAQ. Invests in lower middle market businesses but with a control-equity orientation rather than Gladstone Capital's debt-heavy approach, making it a closely comparable platform with adjacent strategy.
- Main Street Capital Corporation: Internally managed BDC listed on NYSE that provides debt and equity capital to lower middle market companies. Operates with a similar lower middle market focus and monthly dividend structure, often cited as a premium BDC franchise.
- Ares Capital Corporation: Largest publicly traded BDC in the U.S., sponsored by Ares Management. Provides senior secured loans and other debt capital to middle market companies, directly comparable to Gladstone Capital's core lending business but at substantially larger scale.
- FS KKR Capital Corp: Publicly traded BDC formed through a strategic partnership between FS Investments and KKR Credit. Provides senior secured loans to U.S. middle market borrowers, competing directly for the same lower middle market deal flow as Gladstone Capital.
- Capital Southwest Corporation: Internally managed BDC providing debt and equity capital to lower middle market companies across the U.S. Similar vintage, similar strategy, and similar investment size profile make it one of the closest comparables to Gladstone Capital.
- Saratoga Investment Corp: Publicly traded BDC that invests in leveraged loans and other debt securities of U.S. middle market companies. Comparable monthly dividend structure and focus on sponsor-backed lower middle market borrowers.
- Hercules Capital: Specialty finance company and BDC providing senior secured loans to venture capital-backed and growth-stage companies. While more growth-stage focused, it competes in the broader upper-tier lower middle market with similar fund structures.
- Trinity Capital Inc. Publicly traded specialty lending BDC providing senior secured loans to growth-stage and lower middle market companies. Comparable origination model and monthly distribution structure with similar portfolio yield profile.
Broad incumbents
- Blackstone Private Credit Fund: Non-traded BDC sponsored by Blackstone Credit that invests in senior secured loans to U.S. middle market companies. Operates in the same direct lending category as Gladstone Capital but with materially larger scale and sponsor backing.
- Blue Owl Capital (Owl Rock): Large alternative asset manager with multiple BDC vehicles (OBDC, ORCC) providing direct lending solutions to U.S. middle market companies. Broader scale and product platform place it as a broad incumbent competitor rather than a pure-play peer.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat4 records
Key risks7 records
Key highlights7 records
Customer concentration
Gladstone Capital social profiles
Digital presenceGladstone Capital financial estimates
Financial estimateRevenue estimate
Valuation estimate
Gladstone Capital leadership team
Management profileNumber of profiles
Profiles13 records
Gladstone Capital funding detail
Funding detailFunding overview
Funding rounds2 records
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Gladstone Capital M&A and investment
M&A and investmentM&A5 records
Investments12 records
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Gladstone Capital
What does Gladstone Capital do?
Gladstone Capital Corporation is a publicly traded Business Development Company (BDC) that invests in debt and equity securities of lower middle market businesses in the United States. Its debt investments consist primarily of secured loans to small and medium-sized U.S. businesses, generating interest income at a weighted average yield of approximately 12.2%. The company also offers a Series A Preferred Stock security and pays monthly cash distributions to its stockholders under the Small Business Investment Incentive Act of 1980.
Is Gladstone Capital a public or private company?
Gladstone Capital is a public company. It is classified as public and is currently operating.
When was Gladstone Capital founded?
Gladstone Capital was founded in 2001. It employs 51 to 100 people.
Where is Gladstone Capital based?
Gladstone Capital is headquartered in Mclean, United States, in the North America region.
How does Gladstone Capital make money?
Two revenue lines are on record. Interest Income from Lending is the primary driver. The others are dividend Distributions.
Who are Gladstone Capital's main competitors?
Direct peers on record are Gladstone Investment Corporation, Main Street Capital Corporation, Ares Capital Corporation, FS KKR Capital Corp, Capital Southwest Corporation, Saratoga Investment Corp, Hercules Capital and Trinity Capital Inc.. Broad incumbents are Blackstone Private Credit Fund and Blue Owl Capital (Owl Rock).
Does Gladstone Capital have an API?
No public API is recorded for Gladstone Capital.
What industry is Gladstone Capital in?
Gladstone Capital's product category is Middle Market Lending / Business Development Company. Its primary akta.pro industry code is FSANAIAC, BDC / Public Vehicle Venture Debt Providers. Its NAICS code is 523999 and its SIC code is 6159.