Earnings call transcript Q3 2023

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Operator

Greetings, and welcome to the Gladstone Capital Corporation Third Quarter Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, David Gladstone, Chief Executive Officer. sir. you, Thank

begin. You may

David Gladstone

the Latanya. morning, That this introduction, you, Capital a the XX, was This is good for Gladstone everybody. for And conference and ending David June earnings XXXX. Thank call nice quarter Gladstone, is Chairman.

all for in. calling you Thank

here. analysts, update happy on and opportunity provide talk the welcome our things to update company. to always you about the like We’re the our for all to going We’d shareholders and to

LiCalsi, who hear forward-looking from our Michael regarding General And some now, certain makes Counsel, statements. we’ll statements Michael?

Michael LiCalsi

the risk that factors which these be materially may be or from results These Thanks, performance. to Act David. And are based Today’s Securities believe statements, including documents everybody. SEC. and we Good XX-Q, reasonable. XXXX, current that Exchange forward-looking uncertainties future cause our forward-looking XXXX on file morning, including in implied our our statements include actual with results those we to report forward-looking Act may the regarding the XX-K of involve and any statements factors expressed under certain by our other future Forms plans, of the and different many all Securities risks

page of You can them website on the at gladstonecapital.com. find our Investors

sign www.sec.gov. You documents you can on on for find up can is the also the well, as the notification e-mail website which or SEC’s website

update revise by of of any required or publicly these whether to except obligation future information, new result no events as statements, undertake a we or Now, law. as forward-looking otherwise,

for you our Investors them Form you of XX-Q, website. the overview more results, yesterday that we release our so page and of our Now, is issued again, on review can information, detailed an today’s call find ask both press

over I’ll Bob that, Gladstone Now, turn President, presentation with Capital’s the Marcotte. Bob? to

Bob Marcotte

morning. some our Nicole the XXXX results on review some I’ll CFO, the morning the thank the details this over outlook for the last financial dialing to and of Schaltenbrand, the call of period. before you all of turning comments quarter highlights our cover and for in Good for balance to for

originations period, last million new our $XX majority points Higher $XX balance weighted average new with and the to of $XX yield XX ending were platform quarter short-term for amortization by our interest beginning by so Portfolio, investment X were So, basis repayments investments. results, million. rates lifted XX.X%. rose million, investments representing our these the on with portfolio the

X.X% million. to total the average in rose in assets primary behind which interest increase the driver However, $XX.X earning the XX.X% income, was increase

by Borrowing cost higher with increased rates $XXX,XXX borrowings. bank and SOFR

by the higher for rose to management deal the to fees advisory assets, million as incentive than with more yields. and increase or associated $X.X fees offset in Net the X.X% margin investment interest the million $X.X net of $XX.X closing our credits quarter. for However, period fee declined million,

or increased income gain XX% per the is to investment positive. came $XXX,XXX period last share, the at unrealized for the the net and same Our quarter which and XX% up in quarter, $X.XX year. from million net $XX.X for realized from The portfolio on period last

recently per $X.XX. to lifted month. the the performance for NAV for portfolio and net in net $X.XXXX to lifted earnings income, per $X.XX to of quarter by income Combination on increase expenses Based lower dividend and interest undistributed the However, XX.X%. quarter the ROE net increased share interest monthly increase we our announced

With respect overall the to portfolio.

and value. only at with million X.X% with fair at the well generally we leverage liquidity one quarter representing Our assets modest portfolio continues profile cost of ended debt $X.X investment non-earning metrics, favorable or to perform

XXX, our appreciation portfolio the the on $X.X gain of period which nominal. of was quarter net was The appreciation legacy a realized for of million capped the The interest for as related outcome. the offsetting successful on debt PIC in co-investment moves investment to primarily in equity included positions $XXX,XXX exit very was the several and investment a depreciation equity

with leave our to on of the I’d a XXXX, for reflecting of like balance In outlook comments. couple you

While middle market, the outpace follow these deal broader to our including portfolio and investment investments on repayments portfolio. of see opportunities within expect existing lower further market the flow and continuing attractive within our growth opportunities investment moderated, to support we’re

X.X today. And and mitigate with with in lower rigor issues We assets. average our which potential activity the debt to with helped secured face have XX% times of EBITDA, our a up maintained has of escalation leverage the our non-earning it focus underwriting loans, investments of in associated interest investment make rate the yield weighted overall and about portfolio service continue associated senior on erosion risk

sheet continue We to portfolio. conditions target balance ATM continue our growth range permitting issue of support under investment plan equity modest leverage our within market to to to leverage our actively manage program the our and

expect further floating rise with by floating quarter, rate current coming our quarter. up income interest and the pace Lastly, rates be our $XXX rate million our would in exceeding again this floating to investments net assets approximately to the we on

now, results quarter. fund’s Schaltenbrand the And on like this call financial for more the to over I’d Nicole details provide to turn to

Nicole Schaltenbrand

Good Bob. everyone. Thanks, morning,

investment $X.X to to investment increase portfolio yield quarter, based of $XX.X bearing to X.X% the in portfolio the compared the the rates. weighted The carries rates and quarter. which million rates points average our million, or During floating June assets. XX or on increase weighted total million, interest to $XX on earning million, income increase rose average $XXX basis up XX.X% in in an rose The the was floating balance the XX% XX.X% short-term prior portfolio with that on increased interest

total at unchanged Total XX% expenses Other XX.X with quarter. or $X.X the and for rose quarter-over-quarter million rose $XXX,XXX interest higher by expenses. income largely million to was investment million $X income

declined offsetting deal $XXX,XXX incentive with advisory fee net management fees fees than more As higher credits paid. closing the

share Bob quarter in operations $X was or per resulting dividend was covered from net net or $X.XX earlier. supported June which the quarter compared unrealized of which $XX.X XX increase ended the by $X.XXXX and announced $X.XX share, and exceeded Net increase paid investment $X.XX July. for by to the $XX.X prior million, was impacted share, per income the as the an to million valuation assets million, quarter, per in The increase depreciation realized per

Moving over sheet. to balance the

June million rose notes and million $XXX the line As end XXXX. of assets at of fair cash senior of senior consisting quarter, May $XX of value to XXXX, credit and consisted other million to in of June $XX investments $XXX million. of advances as million under XX, Liabilities million, to X.XX% primarily in $XXX the rose of notes $XXX due X.XXX% of total And as due our XX of million and of $XXX assets. rose

our up period revolving maturity October favorable for an XXXX, we final pursue intend increase our successfully $XXX October and quarter, given renewed credit and credit in commitments in the in expected accordion facility, to of facility our investments, the respectively. The the to During near-term. collateral the position an million, to provides extending we growth facility and and XXXX the

As XX of share June the $XX.X issuance earnings. XX. with XX, of of $XX.X per net $X.XX under common as undistributed quarter to net share million and from from by our from assets as June proceeds $X.XX NAV share million prior the per ATM March rose rose end program of

assets net the of in as to Our of quarter increase XXX% assets. with end of rose the leverage the

the common our and rate an of $X.XXXX $X.XX September, the distribution share. October July, effective will of following to share undistributed respect in light to in of will of in run meet year, the September. monthly common this supplemental stockholders of Board annual August a determine distributions, With be to accumulation earnings per distribution for to were stockholders per is which distributions monthly months increased And per paid $X.XX the common to for share The quarter.

common about share yesterday, is At $XX.XX rate now the the current our of a X.X%. common stock at price distribution for run per distribution and producing with yield run about stock the rate

to Now, it turn conclude. David back I’ll to

David Gladstone

$XXX assets. great earnings lifted did you. over The quarter, a of increase. our very growth that $X.XXXX. Michael, income Portfolio and congratulations to Bob, the delivered another distribution higher has with to on asset income increase In Nicole the leverage XX% $XX a shareholders rose putting company and to last think investment or and million is in analysts which monthly in support million, to non-performing interest quarter. Nicole, and I on of months. for company. the follow investments Thank rate really of originations stellar this in net company XX quarter, the million the show for job, modest informing XX% earnings The you of common net good $XX.X low summary, just shape Bob a good the been all

partners mid-sized to with good do. private support for of company In oriented, the that management. investing business, we cash businesses how investments stick our to are the know shareholders. looking experienced This are the ongoing strategy equity acquisition middle supported of these the Many distributions support company funds the interest to in by pay and is with market growth to attractive summary, the to lower growth of make to opportunity which gives commitment paying the what loans continues to

if from operator, the listening. now, about you’ll ask on, our Latanya, people come And questions company the the

Operator

Thank you.

We [Operator proceed. with comes Ladenburg. Schleien from question-and-answer a Our Please Mickey will session. now conduct Instructions] question first

Mickey Schleien

portfolio everyone. about curious Good fee I’m this Yes. company Bob, credit. morning,

Could with look and highest nature level investment that the of you in fees few in could the the to a extent several it’s fee activity company the of what Your next fee about the us was outlook been credit line any last these years. was like of in sort the but on quarters? portfolio of quarters, tell possible, couple

Bob Marcotte

events; of morning, been PIC Good observation. business, gosh, to Good there referred that that exit XXX. probably the say would me. I predates it I two that unusual We’ve earlier are in Mickey. one,

was on which of over position. was there, going decent There it’s a residuals size of exit sale So an fee the asset small decade. the that a

was there our and event. activity. I a in There Market also flagged and of item. reinvestment Inspire, conditions unusual a in investment say it kind was that unusual an think, an that I was positive. prepayment so would we was were So –

new fee got actually a facility. prepayment the a We and new fee on

$X hit which period. down suggest So pressures I quarters. driving from year would closer That of that than prior is on was also a fee today. lifted said, it for particular last point, you’re fee more the competition kind referencing probably numbers levels the the a was double that lot to probably there million There

fees. market environment, I think this in full getting we’re current

could that of fees We origination X% are be about or X%. talking north

fee in levels So, the access tighter. because the have general gotten capital market to has increased,

obviously say be But we where on was above helps. an last quarter historically. have anomaly, average, So, been would I probably a that bit of we’ll if

Mickey Schleien

Yeah. one is of sort What new just business of about anything and a positions company describe Can find That’s company in? online. I they’re them your called does? couldn’t that. you Trowbridge, helpful. I this appreciate Bob, what

Bob Marcotte

a banking, It’s and It interesting condo association estate very includes business. companies. buying the accumulating companies actually is dwellings most management at or and you HOA a business today, and real that contracting of HOA multi-family financial It’s some that market accounting, a services. community is have growing market. other When role, and developments management large management sort look

business, company estate is this There processes. are modestly several very broad aggregating those institutionalizing backed a systematizing players several large a that and real It’s and is the those but actually large in leveraged investors. and market investment by it’s very businesses

So a we service services increasing and nice in that the its that marketplace business in today. capabilities as is demands view

Mickey Schleien

bit. perhaps participate That mentioned less in which market, on tightening have are I current or after, there’s you same you sounds where little the of actively sought at you but terms spreads market fees, in the the a deals in Bob, seeing some that interesting. not? seen time, Are that pressure

Bob Marcotte

We haven’t seen really that.

observation, to not, go almost rates there’s multiples higher, up. reverse the growth paying correct. they’re where their situation, effect a market It strongest very fact only oriented. that’s adverse to do financing. I it’s because can typically marketplace more in come companies in I is of market that people the think, like that are for Your an And has mean, the where with and

and seeing activity. high you’re what spreads the So fees has in with grading investment in to do

companies. is best going always amount through, a there the only be available certain companies to capital those and of to good So come

dynamic, bit general its the little marketplace in given position. bank a a is more and the regional of there terms and So what’s competitive happening capital tighter withdraw

that trying and to facilities We’re seeing currently private capital that home the same base. that’s a larger overhang in a segment, you have not because where would in the have broader amount quite in segment our the play a investor find doesn’t we of capital

Mickey Schleien

Nicole. I My perhaps, understand. helpful. That’s last for question,

that portfolio said credit upsize Nicole think grows, the the I you just to if maybe you’re as but not I’m downsized looking mistaken, facility it.

you just downsize could why So re-upsize then reconcile would it? it you and

Nicole Schaltenbrand

to out downsize weren’t of necessarily so fell of banks intending it. the our we Yeah, one facility,

one Just the focus. of banks was their changing

So continuously upsize. well will in as potentially of and look growth to light our we that as plans,

Mickey Schleien

Again…

Bob Marcotte

long-term regional so actually another acquisition of the banks not, lender very And a And, the finance that what through failed strategy of, lending they believe search happens a out venture soul a business. announced I recently that their or is. institution. are exited sure, going dropped bank the think it from large portfolio it

So capital make how to they and where to out to work they their they are earnings their trying allocate figure going want want want capital more a – to people where environment. to how they under constrained play,

and close So for more failed. move to the framework we on going a It positive stabilize into prudent outlook the facility, the company.

of and bring currently number that we out in we to going that We are Clearly, there institutions cast of wider are financing to net to do. be banks in. needed with expect still working kind are there a just interested would the a

Mickey Schleien

do expand the right to now? unsecured sheet are – not Bob, terms consider And you or just help would debt balance the you more economical

Bob Marcotte

doing we’re marketplace we duration. big and near probably would actively the placement think, to the something that been the are I to some is, feeling say, starting maturities probably that’s And, Well, that starting are to rate we’ve that’s peak. a watching recognize question. and in pursue something term a in is Obviously, time the see that is into investors and gamble. size. are a would what creep certainly I bit monitoring of of to momentum modest expect extend rates And a environment to

fact filed begin be a to marketplace relatively short we the the intention to to preferred, of perpetual to you our that the number distribute point ago also would months which I begin will order. in in

to begin fire side. out the market So it’s build our back that my as going order maintain to and zone support we’re access obviously we said to side in equity I have on to debt growth. target come leverage in to to the the ultimately the going multiple comments, irons to ATM in continued in the But

balance There’s have our clearly more a today we sheet necessarily than today in perspective. from opportunities capitalized fully capacity

Mickey Schleien

you’re So Bob, preferred? that, that’s preferred or… the perpetual to X.XX% referring the

Bob Marcotte

Yes.

Mickey Schleien

to And below that current would quite bit market. the be seem a

that level? you interest saying are price seeing You’re at

Bob Marcotte

talk that bit sold not about a but It It’s an anomaly. that. of security. to It is is can to separately, Mickey, certain is traded. it value stable going we accounts value a it be

that very of networks. of there’s you funds you are As know, priced other have in tends BDCs REIT large that be accounts. those same be wide is worth to we actually similar some have fact may a I volumes there to or and others few to also sold securities. to our RIA It net tends some high through that this these would point to been more distributed public. selling It securities the not

is securities management reasonably marketplace optimistic and in will similar some agreements we be beginning to the on people with companies what think I comfort are financed provide so, where be to that recognize, frankly, momentum of not given these us go-forward are for are these the to And basis. that selling Gladstone companies the And, some going in story. going the a banking business

player to as We with are businesses. positioned well financing in grow those a

a So a it’s funding need think scale to – to just to demonstrate I continue look of the diversity that as business. we we it’s

Mickey Schleien

questions That’s all my you your interesting. Those for time. understand. I this morning. are Thank

Bob Marcotte

calling in, Thank Mickey. you for

David Gladstone

Okay.

go. we Here Next up?

Operator

comes question proceed. next Jefferies. Our with from Kyle Please Joseph

Kyle Joseph

questions. Hey, good for taking Thanks morning, my all.

EBITDA get those given revenue want you’ve been I between growth recent stable non-accruals kind seeing for just on but and to the a Just how sense almost quarter-on-quarter, differ quarters? economy, get trends were thoughts portfolio. know your of your and

Bob Marcotte

pressures focused or on we’re we portfolio, for say go now what inflationary were where support they the broad When And lot things didn’t obviously. The the in. would People for part, focusing I with to on revenue growth, increases know last we’re very through beginning price associated most increased a we’re been costs what calling for wanted sense have on of get the and Thanks the is. the customers. right most wanted continue downstream positive the people to year their of they to availability part because price, to and companies.

are I price so, in XXX% we’re getting is seeing softer. think, the now and And revenue almost portfolio oriented are the increases volumes what

very going near-term, is blowback, going customers resist to inflation concerned more vehemently in get and going So that we’re some to squeezed down get you’re to increases. price the are the

focused So we’re is very to on what going revenue that look growth like.

where things things. most the consumer impacted part, companies directly the people Obviously, portfolios’ would places the most together. services holding sides For I of are think maybe like building, some of be our are

pressures it’s revenue very we inflationary significant feeling the I really down off. see of companies. like any think, of fall we’re right don’t trends some solid, pushing But but now, cognizant we’re on these

Most where barriers to competitive of entry. focus we customers, our there’s position businesses decent businesses that are on or serving visibility or revenue downstream

anybody pressures. level biggest they And face where some or instances, that’s the when I one some so, commercial of maybe got are look have we own measure measurable any or two at of leverage, probably challenges isolated their that

only we of would and we’ve think of companies, see banks we funding and lot other I trends, leverage from of buyout a businesses about to traditionally have for the it’s an comment begun is done opportunity some some financings. us, withdrawal the The while of that interesting make when creating and the the

those higher asset folks deals. lines asset to seeing real ratios with renewed folks mean, cash and based purely now getting We’re to and I leverage that companies coverage and have lower opposed coverage. aren’t flow coming they’re as tend in, dramatically

probably expect the not our the migrate of because in underlying focus, coverage, primary market. would asset that’s to of our although movement some will I portfolio So higher have

original your of question, of So what we’re sense a that a you I gives I but some from that’s hope seeing. diversion realize bit

Kyle Joseph

middle gone everything and into and helpful requirements banks just get guys with to regional the what’s months gone good quite a necessarily sense lower But quarters? and banks, don’t segue your for of increased banks, for rumors of it’s you Yeah, on my want of follow-up. on kind market, there recent that’s banks attractive. in implications I know that’s capital and of on focus with kind anymore, really With operate potential

Bob Marcotte

you The their And butter bread the $XX banks million, be interesting might it type loans. million of the cases thing lot a million, financings, about and is, in many regional and think C&I backed of and bought, financings. $XX not the $XX bank, that’s seen backed asset an buys And says, anymore. in situations and and in it loan the gets asset parent bank we’ve company bank there’s a bought, gets where other business a bank that really that when I’m

And regional so, and the the go does to no do deal or $XX longer area enough this big backed to million want million it’s million loan bank receivable that go to that million banks mega in to where ABLs. $XX asset do services that not when that marketplace, back $XXX $XXX is willing to

of bit to little a referring earlier. a is vacuum that the created in the that’s market there So such I’m deal as referenced in I

so, think, temporary. – it’s I it don’t And be it think, I somewhat I beginning happen. may think, to

have base capital thousands banks. I their and the on of reallocating strategy want managing based it But think banks play. to you also probably are that they there’s where

deposit or to are there C&I So loan their to aren’t others the didn’t ratios. that stretch overexposed market

attracting with we’re are us, into grow portfolio companies want And finding and that so what our have only interested is, capacity but bank like in coming they to of to would our some they finance not we’re banks facilities.

it’s folks we’ll to way. be going tend are at temporary. reason somewhat kind to active market our some I and in the that going in going it’s of to relationships that [ph] forward, be transition of And to that look for think rehoning that the likely we’re C&I So

will going – shortfall capital fill We’re there’s of exists to it. and the function have. magnitude through probably long a going Whether is There’s contraction. other that in a how dislocation banks be that banks the come probably that of

longer into of take the system regulation. to while investment challenges I the banks And through a of lending of back tend positive criteria will sheer that for a to and work losses, a think more and come little to ultimately it it will of deposits last the mode. based those upon

certain got probably where it’s So, I active not we’ve think market not if got think, the were for crystal balling, of but I us. generally a easily the in year, I scenario segments banks multi-year probably we’ve are

Kyle Joseph

Thanks Got for it. Very my questions. answering helpful.

Bob Marcotte

you Thank calling for in.

David Gladstone

Okay.

Operator

from proceed. comes with question next James. Please Robert Our Instructions] [Operator Dodd Raymond

Robert Dodd

and on morning, good Hi, congratulations quarter. the

mean, I capital a proportionate have target you share program? for simple quick the would a which it’s size structure or in there answer. Do So that would million one I of equity prefer first, couple how large mean, principle of But the pretty questions. a is preferred be? obviously, be view a actually X offering, what to big. to maximum

Bob Marcotte

lot really a brought It’s of in a good haven’t Robert. whole it, since question, we

to goal. I I growth us rate we would out look XX put we’re given from think, if XX now, experiencing, at months that the our

to As rating. in closer would investment-grade agency getting rating is a billion, which calls, I’ve stated $X traditional to earlier more get support major

our so, I’m And given of current shooting where trajectory, that’s to. kind

XX% Given over time, be or base, of be period that it I million preferred capital million getting is selling to of think XX% $XXX that our to of out line. don’t we’ll $XXX to that

really the it’s banks away And XXXX. two It’s from get in middle going diversify XXXX regional way to lower to BDCs. XXXX, out what we that is, market hedging in as the second traditionally supporting need of have and and have or we maturities And the XXXX we’re things. doing the been

thought lessons of we while could come So quarters capital from be think XX% last or that banks, high. our have couple of of those past in XX% the have the the might suggested base might I

a reliance funding banks So, commercial there inside portfolio. will think, permanent the capacity lesser basis I a on for be the on

the medium-term in $X where of you billion that, modest were is placement if $XXX me are. beyond we you and strategy. market the to having here, had million And rates $XXX to have million million more So banks tell a to $XXX at million $XXX kind

on the back will current as I pushing certainly, marketplace, but attractive think perpetual go given we the that it’s spreads, as to preferred. not

is of I where target. should think, about a you our XX% to from preferred the think XX% forma pro capitalization, So perpetual

Robert Dodd

for all detail. Thank Perfect. that you

mean, to average coverage I of X.X, interest portfolio, healthy really leverage going portfolio. at I the the be is across the mean, bulk On

any right So talked revenue who’s about portfolio you worries can that? and perspective you primary kind of like the about you of somebody X.X give it and portfolio talked is also kind leverage a companies’ volumes From for things your us Because from it. about perspective, leverage, it got at what’s now? worry with rates not might times be low on like inflation,

So for the kind is right the is the these revenue volumes is you just of – unit what’s Or it what businesses? or worry now? it it that’s your

Bob Marcotte

When Robert. when we start – we the underwrite credits,

We’re going places opportunity and support find volume that trying will time, there’s additional to organic be drive on market will it growth an over that to deleveraging. add it attract will a investments

the is is focus primary intact. it’s profile not intact, risk have And and probably something that to outlook and our structure underwriting we we that the then if capital the with strategy started So growth reevaluate.

to sponsors start harder. go and is we cost those we growth direction tends the our of you in to where refinance discussions and when capital deleverage going diminish, to of the with to sheet. have our be what outlook do And do some And investments see growth that can balance

business, If we need growing a to enough the continue to structure. you’re low particular make to the is amortize services sure aren’t leverage and an sustain and industrial segment, in necessarily industrial services

value down, isn’t the it’s if typically, equity not coming so, growing. And

sponsors, in cases, And about time probably to exiting. think those most it’s equity

pinnacle deleverage the grown because reached the to to point can to the exit, or exit seeks they’ve have peak So because a of for we companies the time. can We them over exit business. exit sponsor these via when refinance, many

focusing growth. And so on we’re

So things certain healthcare I space. I would industrial we’re services, consumer certain in services, the right cognizant say think, of now, also

price but invariably has reimbursement beginning costs pressures. or on fairly seeing sector will Healthcare to it’s certainly and see some is grown to pressures will it’s a increasing continue that see are well, side It staffing increase. some that the

of where mindful and impair margins fundamentally availability business. probably staffing may costs we’re the of so, And places the staffing

to flows? or more are circle is are intact? them guess, we conclude, pressures investments sectors I there going deleveraging and I their more when sectors. our to difficult margins those focused growth deemphasizing pricing So, are And those are for kind acutely that either the make probably where would I it to the in cash of back sustain And say, on

Robert Dodd

portfolio Again, If very one, the based I what is that a were I for gladly largely talking, I helpers we’re around if built Last to has can. That’s you been degree helpful. and I your going appreciate the platform really mean, to on Karl. [ph]. remarks think, color. funding when to see

Your know rather LBO direct with a taking any remarks the – banks have on building sourcing relationships that not you I if asset activity? may sense. over the transition than How does cases to sourcing because made that see which your which or relationships effort, the don’t with say et more sourcing find that more et of basically with you withdrawing, cetera, new in company, a does sponsor? bank’s attractive, more how quite backed, But sounds cetera. current might focused sponsors been many to

Bob Marcotte

I intermediaries good cases companies, open? who or some and to say, I will revenue breadth It’s bank is, mean, far what broad. have from. not we’re we our come be say have that too so those transactions going need able bank not interesting. or sourcing I are framework. where we companies probably the regional And those we’re far million might in would sized to somewhat It’s going broker to issues. topical, somebody help. a It’s going $XXX to investment say but cover change call going seen say to They’re an of who’s

little and a SBICs, with and environment, BDCs may today’s few be few pricier a little There smaller. capital And equity but open are there in a capacity. a they’re obviously

find, serve banks and I is, we’re the don’t They’re rationally. going given to disarray. to in the near-term, some who’s what to that going pick-up commentary dislocations what at are call business. the problems, in understand in And they And first want to think, need are their those I is so, companies acting cases, least to open the do. not

Let grow and partner a be business. understand my good my to help find financial might that me somebody me business

of those but majority been I intermediary this saying to we’ve he’s while. and contacts, so a I our the the for he’s quite expect given position And major near-term, been here David’s a doing come and, anybody. marketplace mean, vast than in know, through longer lot, the it would in I not the doing

we’re of share to our So get going cost.

Robert Dodd

you. Thank Understood. Yeah.

David Gladstone

would there question? Okay. that anybody Latanya, to is like ask a else

Operator

Mr. are further no questions, Gladstone. There

turn you back comments. I’ll So it for closing to

David Gladstone

more of We see thanks shucks. good But calling call. Oh, next all for quarter. and end the asking questions. questions. lot wanted of you in That’s And this us a we’ll you

Operator

conclude does today’s This you. Thank teleconference.

for a You may Thank your great disconnect have your and participation lines day. this you time. at

Gladstone Capital (GLAD) 27 Jul 232023 Q3 Earnings call transcript