Gladstone Capital

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.

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

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

• Middle market lending
• Business development company
• Debt financing solutions
• Private credit investing
• Mezzanine debt capital

Headquarters

HQ city

Mclean

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Operations, Personnel, Others

Revenue model

1. 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.
2. 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

Go-to-market motion1 record

Distribution channels2 records

Marketing channels4 records

Core 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

Segments4 records

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

One partnership is on record.

• AI and Data Center SectorscoreOthersGladstone 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

Direct 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

• Xx.com/GladstoneComps
• Facebookfacebook.com/TheGladstoneCompanies
• LinkedInlinkedin.com/company/the-gladstone-companies

Revenue estimate

Valuation estimate

Number of profiles

Profiles13 records

Funding overview

Funding rounds2 records

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A5 records

Investments12 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Gladstone Capital