The Gladstone Companies invest in mature, well-managed businesses with $20 to $100 million in revenues and attractive fundamentals. Many of our investments are in support of middle-market leverage buyout funds. We also invest with fundless sponsors and support private company owners needing growth capital and funding for acquisitions.
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 flow with consistent earnings
Minimal market risk or technology risk
Potential to expand cash flow
Long term customer relationships
Continental United States location
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 results during various economic cycles. We place a good deal of emphasis on the experience and track record of the equity sponsor groups with which we work and take pride in the longstanding relationships we have established through the years with our private equity partners.
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 secured loans with warrants and may include an equity investment in conjunction with a loan. Our capital is typically used for the initial acquisition of portfolio companies, add-on acquisitions, recapitalizations, and in select cases, we may provide short-term bridge financing.
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:
Second Lien Debt
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.
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