Gladstone Investment Corporation Reports Financial Results for its Second Quarter Ended September 30, 2024
Gladstone Investment (GAIN) reported financial results for Q2 2024. Total investment income increased 1.7% to $22.6 million, while net investment income decreased 41.3% to $7.3 million ($0.20 per share). The company recorded a significant realized gain of $42.3 million, primarily from the exit of Nth Degree Investment. Net asset value per share decreased to $12.49 from $13.01 in the previous quarter. The company declared distributions of $0.08 per share monthly and an additional special distribution of $0.70 per share paid in October 2024.
Gladstone Investment (GAIN) ha riportato i risultati finanziari per il secondo trimestre del 2024. Il reddito totale da investimenti è aumentato dell'1,7% a 22,6 milioni di dollari, mentre il reddito netto da investimenti è diminuito del 41,3% a 7,3 milioni di dollari (0,20 dollari per azione). L'azienda ha registrato un significativo guadagno realizzato di 42,3 milioni di dollari, principalmente dall'uscita di Nth Degree Investment. Il valore patrimoniale netto per azione è diminuito a 12,49 dollari rispetto ai 13,01 dollari del trimestre precedente. L'azienda ha dichiarato distribuzioni di 0,08 dollari per azione mensili e una distribuzione speciale aggiuntiva di 0,70 dollari per azione pagata a ottobre 2024.
Gladstone Investment (GAIN) reportó los resultados financieros del segundo trimestre de 2024. Los ingresos totales por inversiones aumentaron un 1,7% a 22,6 millones de dólares, mientras que los ingresos netos por inversiones disminuyeron un 41,3% a 7,3 millones de dólares (0,20 dólares por acción). La compañía registró una ganancia realizada significativa de 42,3 millones de dólares, principalmente por la salida de Nth Degree Investment. El valor neto de los activos por acción disminuyó a 12,49 dólares desde 13,01 dólares en el trimestre anterior. La compañía declaró distribuciones de 0,08 dólares por acción mensuales y una distribución especial adicional de 0,70 dólares por acción que se pagará en octubre de 2024.
Gladstone Investment (GAIN)는 2024년 2분기 재무 결과를 보고했습니다. 총 투자 수익은 2,260만 달러로 1.7% 증가하였고, 순 투자 수익은 730만 달러로 41.3% 감소했습니다 (주당 0.20달러). 이 회사는 Nth Degree Investment의 매각에서 주로 4,230만 달러의 상당한 실현 이익을 기록했습니다. 주당 순 자산 가치는 이전 분기의 13.01달러에서 12.49달러로 감소했습니다. 회사는 월별로 주당 0.08달러의 배당금을 선언했으며, 2024년 10월에 지급될 주당 0.70달러의 특별 배당금도 추가로 발표했습니다.
Gladstone Investment (GAIN) a annoncé les résultats financiers du deuxième trimestre 2024. Le revenu total d'investissement a augmenté de 1,7 % pour atteindre 22,6 millions de dollars, tandis que le revenu net d'investissement a diminué de 41,3 % pour s'établir à 7,3 millions de dollars (0,20 dollar par action). La société a enregistré un gain réalisé significatif de 42,3 millions de dollars, principalement en raison de la sortie de Nth Degree Investment. La valeur nette d'actif par action a diminué à 12,49 dollars par rapport à 13,01 dollars au trimestre précédent. La société a déclaré des distributions de 0,08 dollar par action chaque mois, ainsi qu'une distribution spéciale supplémentaire de 0,70 dollar par action versée en octobre 2024.
Gladstone Investment (GAIN) hat die finanziellen Ergebnisse für das zweite Quartal 2024 bekannt gegeben. Das gesamte Investitionseinkommen stieg um 1,7% auf 22,6 Millionen Dollar, während das Nettoinvestitionseinkommen um 41,3% auf 7,3 Millionen Dollar zurückging (0,20 Dollar pro Aktie). Das Unternehmen verzeichnete einen erheblichen realisierten Gewinn von 42,3 Millionen Dollar, hauptsächlich aus dem Ausstieg von Nth Degree Investment. Der Nettovermögenswert pro Aktie sank von 13,01 Dollar auf 12,49 Dollar im vorherigen Quartal. Das Unternehmen erklärte monatliche Ausschüttungen von 0,08 Dollar pro Aktie sowie eine zusätzliche Sonderausschüttung von 0,70 Dollar pro Aktie, die im Oktober 2024 ausgezahlt werden soll.
- Total investment income increased by 1.7% to $22.6 million
- Realized gain of $42.3 million from Nth Degree Investment exit
- Additional special distribution of $0.70 per share declared
- Maintained consistent monthly distributions of $0.08 per share
- Net investment income decreased 41.3% to $7.3 million
- Net asset value per share declined 4% to $12.49
- Total expenses increased 56.4% to $15.3 million
- Net unrealized depreciation of $34.1 million
Insights
The Q2 FY2024 results show mixed performance with significant portfolio movements. Net investment income dropped -41.3% to
The NAV declined
Portfolio activity shows strategic repositioning with notable transactions. The
The fair value of investments as a percentage of cost declined to
MCLEAN, VA / ACCESSWIRE / November 7, 2024 / Gladstone Investment Corporation (Nasdaq:GAIN) (the "Company") today announced earnings for its second fiscal quarter ended September 30, 2024. Please read the Company's Quarterly Report on Form 10-Q, filed today with the U.S. Securities and Exchange Commission (the "SEC"), which is available on the SEC's website at www.sec.gov or the investors section of the Company's website at www.gladstoneinvestment.com.
Summary Information: (dollars in thousands, except per share data (unaudited)):
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| September 30, |
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| June 30, |
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| $ Change |
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| % Change |
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For the quarter ended: |
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Total investment income |
| $ | 22,565 |
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| $ | 22,178 |
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| $ | 387 |
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| 1.7 | % |
Total expenses, net(A) |
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| 15,274 |
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| 9,764 |
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| 5,510 |
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| 56.4 | % |
Net investment income(A) |
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| 7,291 |
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| 12,414 |
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|
| (5,123 | ) |
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| (41.3 | )% |
Net realized gain |
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| 42,303 |
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|
| 2 |
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| 42,301 |
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| NM |
| |
Net unrealized (depreciation) |
|
| (34,112 | ) |
|
| (18,942 | ) |
|
| (15,170 | ) |
|
| 80.1 | % |
Net increase (decrease) in net assets resulting from operations(A) |
| $ | 15,482 |
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| $ | (6,526 | ) |
| $ | 22,008 |
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| NM |
| |
Net investment income per weighted-average common share(A) |
| $ | 0.20 |
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| $ | 0.34 |
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| $ | (0.14 | ) |
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| (41.2 | )% |
Adjusted net investment income per weighted-average common share(B) |
| $ | 0.24 |
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| $ | 0.24 |
|
| $ | - |
|
|
| - | % |
Net increase (decrease) in net assets resulting from operations per weighted-average common share(A) |
| $ | 0.42 |
|
| $ | (0.18 | ) |
| $ | 0.60 |
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| NM |
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Cash distribution per common share from net investment income |
| $ | 0.24 |
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| $ | 0.24 |
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| $ | - |
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| - | % |
Cash distribution per common share from net realized gains(C)(D) |
| $ | 0.70 |
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| $ | - |
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| $ | 0.70 |
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|
| 100.0 | % |
Weighted-average yield on interest-bearing investments |
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| 14.5 | % |
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| 14.5 | % |
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| - | % |
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| - | % |
Total dollars invested |
| $ | 19,500 |
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| $ | 598 |
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| $ | 18,902 |
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| NM |
| |
Total dollars repaid and collected from sales and recapitalization of investments |
| $ | 73,522 |
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| $ | 3,024 |
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| $ | 70,498 |
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| NM |
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Weighted-average shares of common stock outstanding - basic and diluted |
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| 36,688,667 |
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|
| 36,688,667 |
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|
| - |
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| - | % |
Total shares of common stock outstanding |
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| 36,688,667 |
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|
| 36,688,667 |
|
|
| - |
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| - | % |
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As of: |
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Total investments, at fair value |
| $ | 853,307 |
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| $ | 899,138 |
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| $ | (45,831 | ) |
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| (5.1 | )% |
Fair value, as a percent of cost |
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| 101.6 | % |
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| 105.5 | % |
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| (3.9 | )% |
|
| (3.7 | )% |
Net assets |
| $ | 458,375 |
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| $ | 477,380 |
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| $ | (19,005 | ) |
|
| (4.0 | )% |
Net asset value per common share |
| $ | 12.49 |
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| $ | 13.01 |
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| $ | (0.52 | ) |
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| (4.0 | )% |
Number of portfolio companies |
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| 22 |
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| 23 |
|
|
| (1 | ) |
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| (4.3 | )% |
NM = Not Meaningful
(A) |
| Inclusive of |
(B) |
| See Non-GAAP Financial Measure - Adjusted Net Investment Income, below, for a description of this non-GAAP measure and a reconciliation from Net investment income to Adjusted net investment income, including on a weighted-average per share basis. The Company uses this non-GAAP financial measure internally in analyzing financial results and believes it is useful to investors as an additional tool to evaluate ongoing results and trends for the Company. |
(C) |
| Includes |
(D) |
| Estimates of tax characterization made on a quarterly basis may not be representative of the actual tax characterization of distributions for the full year. Estimates made on a quarterly basis are updated as of each interim reporting date. |
Highlights for the Quarter: During the quarter ended September 30, 2024, the following significant events occurred:
Portfolio Activity:
In July 2024, we invested an additional
$18.5 million through secured first lien debt in Nocturne Luxury Villas, Inc. to fund an add-on acquisition.In September 2024, we exited our investment in Nth Degree Investment Group, LLC., which resulted in success fee income of
$0.1 million , a realized gain on our preferred equity of$42.3 million and the repayment of our debt investment of$25.0 million .
Distributions and Dividends:
Paid an
$0.08 per common share distribution to common stockholders in each of July, August and September 2024.Declared a
$0.70 per common share distribution to common stockholders in September 2024 paid in October 2024.
Second Quarter Results: Net investment income for the quarter ended September 30, 2024 was
Total investment income for the quarters ended September 30, 2024 and June 30, 2024 was
Total expenses, net of credits, for the quarters ended September 30, 2024 and June 30, 2024 was
Net asset value per common share as of September 30, 2024 was
$34.5 million , or$0.94 per common share, of distributions declared to common shareholders, of which$8.8 million , or$0.24 per common share, was paid to common shareholders as of September 30, 2024, and$25.7 million , or$0.70 per common share, was paid in October 2024; and$34.1 million , or$0.93 per common share, of net unrealized depreciation on investments, of which unrealized depreciation of$38.0 million , or$1.04 per common share, was due to the reversal of unrealized appreciation on the exit of Nth Degree, and unrealized appreciation of$3.9 million , or$0.11 per common share, was due to unrealized appreciation of investments; partially offset by$42.3 million , or$1.15 per common share, of realized gains on investments; and$7.3 million , or$0.20 per common share, of net investment income.
Subsequent Events: After September 30, 2024, the following significant events occurred:
Distributions and Dividends:
In October 2024, our Board of Directors declared the following monthly distributions to common stockholders:
Record Date |
| Payment Date |
| Distribution per Common Share |
| |
October 22, 2024 |
| October 31, 2024 |
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| 0.08 |
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November 20, 2024 |
| November 29, 2024 |
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| 0.08 |
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December 20, 2024 |
| December 31, 2024 |
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| 0.08 |
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| Total for the Quarter: |
| $ | 0.24 |
| |
Non-GAAP Financial Measure - Adjusted Net Investment Income: On a supplemental basis, the Company discloses Adjusted net investment income, including on a weighted-average per share basis, which is a financial measure that is calculated and presented on a basis of methodology other than in accordance with GAAP. Adjusted net investment income represents net investment income, excluding capital gains-based incentive fees. The Company uses this non-GAAP financial measure internally in analyzing financial results and believes that this non-GAAP financial measure is useful to investors as an additional tool to evaluate ongoing results and trends for the Company. The Company's investment advisory agreement provides that a capital gains-based incentive fee is determined and paid annually with respect to realized capital gains (but not unrealized appreciation) to the extent such realized capital gains exceed realized capital losses and unrealized depreciation on investments for such year. However, under GAAP, a capital gains-based incentive fee is accrued if realized capital gains and unrealized appreciation of investments exceed realized capital losses and unrealized depreciation of investments. Refer to Note 4 - Related Party Transactions in our Quarterly Report on Form 10-Q for further discussion. The Company believes that Adjusted net investment income is a useful indicator of operations exclusive of any capital gains-based incentive fees, as net investment income does not include realized or unrealized investment activity associated with the capital gains-based incentive fee.
The following table provides a reconciliation of net investment income (the most comparable GAAP measure) to Adjusted net investment income for the periods presented (dollars in thousands, except per share amounts; unaudited):
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| For the quarter ended |
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|
| September 30, 2024 |
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| June 30, 2024 |
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| Amount |
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| Per Share Amount |
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| Amount |
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| Per Share Amount |
| ||||
Net investment income |
| $ | 7,291 |
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| $ | 0.20 |
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| $ | 12,414 |
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| $ | 0.34 |
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Capital gains-based incentive fee |
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| 1,638 |
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|
| 0.04 |
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|
| (3,788 | ) |
|
| (0.10 | ) |
Adjusted net investment income |
| $ | 8,929 |
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| $ | 0.24 |
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| $ | 8,626 |
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| $ | 0.24 |
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Weighted-average shares of common stock outstanding - basic and diluted |
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|
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|
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| 36,688,667 |
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| 36,688,667 |
|
Adjusted net investment income may not be comparable to similar measures presented by other companies, as it is a non-GAAP financial measure that is not based on a comprehensive set of accounting rules or principles and therefore may be defined differently by other companies. In addition, Adjusted net investment income should be considered in addition to, not as a substitute for, or superior to, financial measures determined in accordance with GAAP.
Conference Call: The Company will hold its earnings release conference call on Friday, November 8, 2024, at 8:30 a.m. Eastern Time. Please call (866) 424-3437 to enter the conference call. An operator will monitor the call and set a queue for any questions. A replay of the conference call will be available through November 15, 2024. To hear the replay, please dial (877) 660-6853 and use the playback conference number 13748840. The replay will be available beginning approximately one hour after the call concludes. The live audio broadcast of the Company's quarterly conference call will also be available online at www.gladstoneinvestment.com. The event will be archived and available for replay on the Company's website.
About Gladstone Investment Corporation: Gladstone Investment Corporation is a publicly traded business development company that seeks to make secured debt and equity investments in lower middle market businesses in the United States in connection with acquisitions, changes in control and recapitalizations. Information on the business activities of all the Gladstone funds can be found at www.gladstonecompanies.com.
To obtain a paper copy of our Quarterly Report on Form 10-Q, filed today with the SEC, please contact the Company at 1521 Westbranch Drive, Suite 100, McLean, VA 22102, ATTN: Investor Relations. The financial information above is not comprehensive and is without notes, so readers should obtain and carefully review the Company's Form 10-Q for the quarter ended September 30, 2024, including the notes to the consolidated financial statements contained therein.
Investor Relations Inquiries: Please visit ir.gladstoneinvestment.com or call (703) 287-5893.
Forward-looking Statements:
The statements in this press release regarding potential future distributions, earnings and operations of the Company are "forward-looking statements." These forward-looking statements inherently involve certain risks and uncertainties in predicting future results and conditions. Although these statements are based on the Company's current plans that are believed to be reasonable as of the date of this press release, a number of factors could cause actual results and conditions to differ materially from these forward-looking statements, including those factors described from time to time in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect any future events or otherwise, except as required by law.
SOURCE: Gladstone Investment Corporation
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FAQ
What was Gladstone Investment's (GAIN) net investment income for Q2 2024?
How much was GAIN's special distribution announced in September 2024?
What was the realized gain from Nth Degree Investment exit in September 2024?
