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Investor Presentaiton

Why Invest in a BDC? BDCs are regulated by the SEC, which mandates asset diversity, investor transparency via quarterly SEC filings including fair value adjustments of all assets and limits financial leverage to a maximum of 2:1 debt to equity leverage. BDCs typically operate as regulated investment companies for tax purposes and pay no corporate income taxes, provided they distribute at least 90% of taxable income and all earnings and gains are passed through to investors. Investment Profile ☐ ☐ Competitive returns - BDC equity distributions typically exceed other yield-oriented investment alternatives Limited interest rate risk Distributions backed by floating rate loans which have supported increased distributions with the recent increase in interest rates Credit protection - Equity is supported by a diversified portfolio of directly originated secured loans with lender friendly credit protections Investment liquidity - Established public equity market for common stock Experienced credit managers - Team experience, ongoing oversight and modestly leveraged capital base structured to manage loan portfolio through various business cycles to minimize credit losses 16.0% 14.0% 12.0% 10.0% 8.0% Alternative Investment Yields 13.6% 6.0% 11.2% 10.1% 4.0% 8.3% 8.4% 7.2% 20% 0.0% BKIN-EIFLoan Fund (1) S&P MLP Index - Distribution Yield (2) High Yield - BAML US BDC Median Distribution GLAD Distribution Yield GLAD Portfolio Effective HY MII Index (3) Yield (4) (5) Yield (6) (1) (2) S&P MLP Index Dividend Yield 6/30/2023 (3) BAML US High Yield Master II Index - Effective Yield 6/30/2023 PowerShares Exchange-Traded Fund Trust II - Senior Loan Portfolio (BKLN) - Yield 6/30/2023 (4) (5) Raymond James 7/13/2023 BDC Industry Investment Banking Weekly Newsletter GLAD's stock price as of 6/30/2023 (6) Reported in GLAD's 6/30/2023 10-Q ← GLADSTONE Page 4
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