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Gladstone Capital
Teamwork - Partnership - Dedication

Gladstone Capital ended 2015 on a high note, closing seven new and follow on fundings. We would like to thank all of our private equity clients who contributed to these results and wish all of you continued success in 2016.

2015 Investment Highlights

 

 
Subordinated Debt
Equity

Add-Ons

February 2015
September 2015

 

In February and September 2015, Gladstone Capital provided subordinated debt and equity to support Lignetics' acquisitions of Bear Mountain Forest Products, Inc. and GF Funding, LLC (DBA Geneva Wood Fuels).

Lignetics manufactures and distributes branded wood pellets primarily for home heating. Lignetics is one of the largest residential wood pellet manufacturers in the U.S., with an annual production capacity of more than 500,000 tons across six plants.

 

 
Senior Term Loan
Equity Co-Investment

Buyout

September 2015
 

In September 2015, Gladstone Capital provided a senior term loan and an equity co-investment in connection with a buyout of Flight Fit N Fun from the founders by a new management team.

Flight owns and operates trampoline parks located in the eastern United States. Trampoline parks are large family entertainment facilities where jumpers of all ages can participate in active social outings, lively corporate gatherings, intense individual workouts or memorable birthday parties.

 

 
Secured Senior Loan
Equity Co-Investment

Sponsor Buyout

August 2015
 

In August 2015, Gladstone Capital provided a secured senior loan and an equity co-investment to support a sponsor-backed recapitalization of a company in the food processing and co-packing industry.

The company provides co-packing services to a wide variety of branded and private label liquid and related food products.

 

 
Second Lien Term Loan
Equity Co-Investment

Sponsor Buyout

July 2015

 

In July 2015, Gladstone Capital provided a loan and equity to support a sponsor-backed buyout of Mikawaya.

Mikawaya is a 105-year old producer of Japanese pastries and specialty frozen desserts. The Company is the market leader in mochi ice cream and also offers five additional product lines, including traditional ice cream and gelato. The Company has long-standing relationships in the supermarket and foodservice segments, and its products are currently available in approximately 1,800 locations nationwide.

 

 
Secured First Lien Loan

Sponsor Buyout

July 2015

 

In July 2015, Gladstone Capital provided a secured first lien loan investment to recapitalize a sponsor-backed buyout of StrataTech Education Group.

StrataTech Education Group operates welding, pipefitting, HVAC/refrigeration, and electrical repair programs across the Phoenix, Tulsa, Houston, and Jacksonville markets. The Sponsor is an East Coast-based private equity firm focused on the lower middle market.

 

 
Gladstone Capital
Corporation
(NASDAQ: GLAD)


Gladstone Capital provides one-stop financing for lower middle market companies nationwide.

Investment Criteria

  • Revenue: $20MM - $150MM
  • EBITDA: $3MM -
    $25MM+
  • Transaction Size:
    $8MM - $30MM

 
Investment Products

  • Revolving Loans
  • Senior Loans
  • Subordinated/
    Mezzanine Loans
  • Unitranche Loans
  • Minority Equity
 
Transaction Types

  • Change of Control
  • Growth Capital
  • Debt Refinancing
  • Acquisition Financing
  • Recapitalizations

 
GLADSTONE CAPITAL'S
INVESTMENT TEAM

 

Bob Marcotte
President
McLean, VA
(703) 287-5857

Zoltan Berty
West Coast
Managing Director
Los Angeles, CA
(310) 693-5073

John Freal
Mid-Atlantic/Boston
Managing Director
McLean, VA
(703) 287-5805

Laura Gladstone
NY/Syndicated
Managing Director
New York, NY
(212) 792-4187

Dave Meier
Midwest
Managing Director
Chicago, IL
(312) 674-4623

John Sateri
Southeast
Managing Director
McLean, VA
(703) 287-5908

Michael Beckett
Texas/Florida
Director
McLean, VA
(703) 287-5832

Mike McQuigg
Mid-Atlantic/NY
Director
McLean, VA
(703) 287-5812
 

 

 
Line of Credit
Senior Term Loan
Equity Co-Investment

Sponsor Buyout

February 2015
 

In February 2015, Gladstone Capital provided a senior loan and an equity co-investment to support a sponsor-backed buyout of United Flexible Group.

United Flexible is a global leader in the design, development, manufacture and support of performance critical flexible engineered solutions for the transfer of fluids and gases in extreme environments. The company is a proactive partner to blue chip OEMs operating in several attractive end-markets including aerospace/defense, satellite, power generation, general industrial, oil and gas, cooling, and transportation.
 

 
OVERVIEW
 
Gladstone Capital Corporation (NASDAQ:GLAD) was founded in 2001 as one of the first BDC funds to focus on investing in loans to lower middle market businesses.

  • Part of Gladstone Companies' family of investment funds which manages $1.9 billion of assets.
  • Focused on financing established growth oriented businesses with the cash flow profile to support leveraged capital structure.
  • We leverage our strong capital base and investment experience to deliver flexible debt capital solutions tailored to support private equity or owner operator business objectives.
  • Investments commonly structured as unitranche facilities to provide maximum funding flexibility and may transition to subordinated debt over time with the add-on acquisition funding.
  • GLAD has invested over $1.5 billion in since inception in almost 200 deals across a wide array of industries and managed its investments through a variety of economic cycles.
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