The Gladstone Companies invest in mature, well-managed businesses with $20 to $500 million in sales and attractive fundamentals. Many of these businesses are portfolio investments of middle-market leverage buyout funds although we also will invest in non-sponsored companies.
Investment size typically ranges from $5 million to $30 million. Companies we invest in typically have the following characteristics:
$3 million plus in EBITDA.
Experienced management team
Proven business model
Predictable and stable cash flows
Minimal market risk or technology risk
Potential to expand cash flow
Long term customer relationships
Most of the businesses in which we invest are market leaders in stable industries, have profitable operations and strong management teams that have delivered proven operating results in both good times and bad. We place a good deal of emphasis on the experience and track record of the equity sponsor groups with which we work.
Typically, the Gladstone Companies do not invest in start up firms or in the technology or financial services sectors. We avoid investments in volatile or cyclical industry segments. We do not invest in turnaround situations although we will consider firms where the contemplated transaction relieves an otherwise attractive company from an unworkable capital structure.
Our investments are typically in the form of loans (with varying levels of current coupon and return enhancement) or preferred equity. Our capital is typically used for the initial acquisition of portfolio companies, add-on acquisitions, recapitalizations including cash-outs and senior debt reduction, and in some cases for short-term bridge financing.
Transaction Structures
The Gladstone Companies are long-term partners and investors. We provide capital to enhance growth and value creation in small to mid-sized businesses. Gladstone provides innovative financing solutions to support investments made by financial sponsors as well as Gladstone’s direct investment in portfolio companies. We have the experience and resources to provide the high level of service demanded in today's competitive transaction environment.
We provide our partners with:
Revolving Credit
Senior Term Debt
Second Lien Debt
Mezzanine Debt
Preferred Stock
Common Stock
Our firm's broad expertise across diverse industry segments provides Gladstone the ability to rapidly analyze an investment opportunity and to move quickly and decisively. Private equity firms and fund sponsors appreciate us for our competitive rates, desire to establish long-term relationships, and our years of experience in adding value to the businesses in which we invest.
Situations in which we have invested include:
Buyouts/ Change of Control: Assisting an existing or new management team in acquiring a company or private equity sponsor to acquire a business.
Acquisitions: Providing financing for strategic acquisitions.
Recapitalizations: Financing distributions to shareholders or refinancing existing credit facilities and senior debt reduction.
Growth: Funding working capital and facility expansion to support future growth.
Copyright 2007 The Gladstone Companies. All Rights Reserved.
