Group 1 - The article discusses investment opportunities in Gladstone Investment (GAIN), particularly focusing on its baby bonds which offer a yield to maturity exceeding 7% [1] - The investment strategy involves identifying mispriced investments in fixed-income and closed-end funds, utilizing straightforward financial logic [2] - The investment group Trade With Beta, led by Denislav Iliev, provides frequent picks for mispriced preferred stocks and baby bonds, along with weekly reviews of over 1200 equities [2]

Group 1 - The article provides a market analysis covering several investment firms, including Gladstone Investment Corporation, FS KKR Capital Corp, Sixth Street Specialty Lending Inc, and Goldman Sachs BDC Closed End Fund [1] Group 2 - The analysis highlights the performance metrics and investment strategies of the mentioned companies, indicating their positions in the market [1]

Core Viewpoint - The article discusses the current state of Business Development Companies (BDCs), highlighting a seven-stock BDC portfolio with a yield of 13.5% that is expected to recover as the market stabilizes. Despite concerns over unemployment and economic slowdown, small businesses are reportedly thriving due to AI advancements [1][4]. Economic Overview - Small business profits are increasing, contradicting unemployment reports that suggest a slowdown. The Atlanta Fed's GDPNow estimates growth solidly over 3% [2]. - The current economic environment is characterized as an efficiency boom rather than a recession, driven by small businesses adopting AI to enhance operations [4]. BDC Market Dynamics - The BDC industry is competitive, with more losers than winners. Selecting individual BDCs is preferable to buying a fund that includes underperformers [6]. - Lower interest rates can reduce financing costs for small businesses, increasing demand for loans, which is beneficial for BDCs [7]. Specific BDC Analysis - **Sixth Street Specialty Lending (TSLX)**: Offers a 9.4% yield, focuses on companies with enterprise values between $50 million and $1 billion, and has a growing portfolio. It primarily deals in first-lien debt, with 96% being floating-rate [8][10][11]. - **Gladstone Investment (GAIN)**: Provides a 10.8% yield, focuses on lower-middle-market companies, and has a higher equity exposure than typical BDCs. Its supplemental distributions are variable [13][19][20]. - **Crescent Capital BDC (CCAP)**: Yields 12.3%, has a diverse portfolio of 187 companies, and is significantly affected by Fed rate changes due to its floating-rate debt [21][24]. - **Trinity Capital (TRIN)**: Offers a 13.5% yield, has a growth-focused portfolio of 178 companies, and is diversified in its investment types [25][28]. - **FS KKR Capital (FSK)**: Yields 14.5%, is one of the largest BDCs, and has a diversified portfolio but has faced challenges due to bad loans and a recent dividend cut [29][33]. - **Goldman Sachs BDC (GSBD)**: Yields 14.7%, has faced quality issues leading to a dividend cut, but is becoming more aggressive in deal-making [35][38]. - **BlackRock TCP Capital Corp. (TCPC)**: Offers a high yield of 19.6%, but has struggled with a significant loss since early 2023 and recently cut its dividend [39][42][43].

Core Insights - Gladstone Investment Corporation has acquired Rowan Energy, Inc. along with Xyresic Capital, providing senior secured debt and the majority of equity for the transaction [1][2] Company Overview - Rowan Energy, based in Oklahoma City, is a leading U.S. oil-and-gas services company specializing in advanced frac sand filtration, completion-equipment deployment, and field-operations support [2] - The company has demonstrated impressive growth due to its commitment to delivering outstanding solutions for its customers [2] Investment Rationale - The investment in Rowan aligns with Gladstone Investment's strategy to pursue opportunities that provide reliable dividend income and potential for long-term capital appreciation, aiming for capital gains for shareholders [3] - Gladstone Investment expresses confidence in working with Rowan's management team to realize value creation [3] Business Development Focus - Gladstone Investment is a publicly traded business development company that focuses on making equity and secured debt investments in lower middle market businesses, particularly in connection with acquisitions, changes in control, and recapitalizations [4]

Core Insights - The article analyzes Blackstone Secured Lending's (BXSL) recent performance and compares it with 11 business development company (BDC) peers, focusing on key financial metrics and investment portfolio characteristics [1][2][3]. Group 1: Financial Metrics Analysis - BXSL's net asset value (NAV) per share decreased from $27.33 at the end of Q2 2025 to $27.15 at the end of Q3 2025, reflecting a quarterly decrease of 0.66% [10]. - The economic return for BXSL in Q3 2025 was $0.59 per share or 2.16%, with trailing 12-month and 24-month economic returns of 10.85% and 25.51%, respectively [10][11]. - BXSL's adjusted net investment income (NII) was reported at $0.882 per share for Q3 2025, with a stock price to annualized NII ratio of 8.39x, slightly below the peer average of 9.87x [21][22]. Group 2: Investment Portfolio Composition - As of September 30, 2025, BXSL's investment portfolio consisted of 97% in senior secured first-lien loans and 2% in senior secured second-lien loans, indicating a conservative investment strategy [15][16]. - The fair market value (FMV) versus cost ratio for BXSL was 0.9912x, slightly below the mean of 1.0164x among peers, indicating a minor negative trend [17]. - BXSL had only 0.1% of its portfolio on non-accrual status, which is below the peer average of 2.9%, suggesting a healthier credit profile [18]. Group 3: Comparative Performance - BXSL's cumulative realized loss per share since its IPO was ($0.13), which is more favorable compared to the peer average loss of ($0.89) per share, indicating better long-term performance [19]. - The company had a low exposure of 0.75% to the oil and gas sector, which is below the peer average of 1.45%, reflecting a cautious approach to potential credit risks [20]. - BXSL's stock price as of November 28, 2025, was $27.59, trading at a premium of 1.81% to its estimated current NAV of $27.10, which is more attractive than the peer average premium of 3.65% [25].

Core Insights - The current interest rate environment poses challenges for investors, particularly in selecting which business development companies (BDCs) to invest in due to concerns over portfolio health and growth potential [1] Group 1: Investment Strategy - A hybrid investment strategy combining classic dividend growth stocks with BDCs, REITs, and Closed End Funds can enhance investment income while achieving total returns comparable to traditional index funds like the S&P [1]

Group 1 - The current interest rate environment poses challenges for investors, particularly in selecting which business development companies (BDCs) to invest in due to concerns over portfolio health and growth potential [1] - A hybrid investment strategy that combines classic dividend growth stocks with BDCs, REITs, and Closed End Funds can enhance investment income while achieving total returns comparable to traditional index funds like the S&P [1]

Group 1 - The article discusses the importance of enabling Javascript and cookies in browsers to prevent access issues [1] - It highlights that users with ad-blockers may face restrictions when trying to access content [1]

Core Viewpoint - Gladstone Investment Corporation plans to redeem all of its outstanding 8.00% Notes due 2028, indicating a strategic financial move to manage its debt obligations [1] Summary by Relevant Sections - **Redemption Announcement** - The Company will redeem all of its outstanding 8.00% Notes due 2028 [1] - A notice of redemption will be sent to all registered holders of the 2028 Notes by UMB Bank, National Association [1] - **Legal Framework** - The redemption is in accordance with the terms of the Indenture dated May 22, 2020, and the Fourth Supplemental Indenture dated May 31, 2023 [1]

Core Viewpoint - Gladstone Investment Corporation has announced a registered direct offering of $60.0 million in 6.875% Notes due 2028, indicating a strategic move to raise capital through debt issuance [1] Group 1: Offering Details - The offering consists of $60.0 million aggregate principal amount of 6.875% Notes [1] - The Notes are set to mature on November 1, 2028 [1] - The Notes may be redeemed in whole or in part at any time prior to August 1, 2028 at par plus a "make-whole" premium [1] - After August 1, 2028, the Notes can be redeemed at par plus accrued and unpaid interest [1]