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
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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
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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
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