GLAD - Gladstone Capital: Good Entry Point For This Strongly Performing BDC

2024-04-17 13:08:50 ET

Summary

• We take a look at the business development company Gladstone Capital, whose valuation has dipped into attractive territory.
• Gladstone Capital operates in the lower middle-market segment, targeting companies with EBITDA of $3-25m, with top sectors in healthcare, education, and manufacturing.
• Gladstone trades at a 10% yield with a net income yield on price of 11.04%.

In this article, we highlight the business development company ("BDC") Gladstone Capital ( GLAD ). GLAD operates in the lower middle-market segment, targeting companies with EBITDA of $3-25m. Its top sectors are Healthcare, Education and Manufacturing. An absence of significant Technology sector lending is one key difference between this and most other BDCs. About 80% of its lending is in sponsor-backed (private equity-owned) deals....

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