UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

SCHEDULE 13G

 

Under the Securities Exchange Act of 1934

 

 

Gladstone Investment Corporation

(Name of Issuer)

Common Stock, $0.001 par value

(Title of Class of Securities)

 

 

376546107

                                (CUSIP Number)                                

August 8, 2006

(Date of Event Which Requires Filing of this Statement)

Check the appropriate box to designate the rule pursuant to which this Schedule is filed:

¨ Rule 13d-1(b)

x Rule 13d-1(c)

¨ Rule 13d-1(d)

 

*   The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter the disclosures provided in a prior cover page.

The information required in the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

CUSIP No. 376546107    

 

  1.  

Names of Reporting Persons.

 

            QVT Financial LP

 

I.R.S. Identification Nos. of above persons (entities only).

    
                11-3694008    
  2.   Check the Appropriate Box if a Member of a Group (See Instructions)  
  (a)  ¨  
    (b)  x    
  3.   SEC Use Only  
         
  4.   Citizenship or Place of Organization  
                Delaware    

Number of

Shares

Beneficially

Owned by

Each

Reporting

Person

With:

     5.    Sole Voting Power
 
                  0
    6.    Shared Voting Power
 
                  867,010 shares
    7.    Sole Dispositive Power
 
                  0
    8.    Shared Dispositive Power
 
                  867,010 shares
  9.   Aggregate Amount Beneficially Owned by Each Reporting Person    
                867,010 shares    
10.   Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions)   ¨
         
11.   Percent of Class Represented by Amount in Row (9)  
                5.2%    
12.   Type of Reporting Person (See Instructions)  
                PN    

 

Page 2 of 7 pages

CUSIP No. 376546107    

 

  1.  

Names of Reporting Persons.

 

            QVT Financial GP LLC

 

I.R.S. Identification Nos. of above persons (entities only).

    
                11-3694007    
  2.   Check the Appropriate Box if a Member of a Group (See Instructions)  
  (a)  ¨  
    (b)  x    
  3.   SEC Use Only  
         
  4.   Citizenship or Place of Organization  
                Delaware    

Number of

Shares

Beneficially

Owned by

Each

Reporting

Person

With:

     5.    Sole Voting Power
 
                  0
    6.    Shared Voting Power
 
                  867,010 shares
    7.    Sole Dispositive Power
 
                  0
    8.    Shared Dispositive Power
 
                  867,010 shares
  9.   Aggregate Amount Beneficially Owned by Each Reporting Person    
                867,010 shares    
10.   Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions)   ¨
         
11.   Percent of Class Represented by Amount in Row (9)  
                5.2%    
12.   Type of Reporting Person (See Instructions)  
                OO    

 

Page 3 of 7 pages

Item 1  

(a).

    Name of Issuer      
     Gladstone Investment Corporation (the “Issuer”)      

Item 1

  

(b).

    Address of Issuer’s Principal Executive Offices      
     The address of the Issuer’s principal executive offices is:      
     1521 Westbranch Drive, Suite 200, McLean, Virginia 22102, United States      

Item 2

  

(a).

    Name of Person Filing      
          

Item 2

  

(b).

    Address of Principal Business Office or, if none, Residence      
          

Item 2

  

(c).

    Citizenship      
     QVT Financial LP      
     1177 Avenue of the Americas, 9th Floor      
     New York, New York 10036      
     Delaware Limited Partnership      
     QVT Financial GP LLC      
     1177 Avenue of the Americas, 9th Floor      
     New York, New York 10036      
     Delaware Limited Liability Company      

Item 2

  

(d).

    Title of Class of Securities      
     Common Stock, $0.001 par value (the “Common Stock”).      

Item 2

  

(e).

    CUSIP Number      
     The CUSIP number of the Common Stock is 376546107.      
Item 3.   If this statement is filed pursuant to §§ 240.13d-1(b) or 240.13d-2(b) or (c), check whether the person filing is a:   
  (a)    ¨    Broker or dealer registered under section 15 of the Act (15 U.S.C. 78o).
  (b)    ¨    Bank as defined in section 3(a)(6) of the Act (15 U.S.C. 78c).
  (c)    ¨    Insurance company as defined in section 3(a)(19) of the Act (15 U.S.C. 78c).
  (d)    ¨    Investment company registered under section 8 of the Investment Company Act of 1940 (15 U.S.C. 80a-8).
  (e)    ¨    An investment adviser in accordance with § 240.13d-1(b)(1)(ii)(E);
  (f)    ¨    An employee benefit plan or endowment fund in accordance with § 240.13d-1(b)(1)(ii)(F);
  (g)    ¨    A parent holding company or control person in accordance with § 240.13d-1(b)(1)(ii)(G);
  (h)    ¨    A savings associations as defined in Section 3(b) of the Federal Deposit Insurance Act (12 U.S.C. 1813);
  (i)    ¨    A church plan that is excluded from the definition of an investment company under section 3(c)(14) of the Investment Company Act of 1940 (15 U.S.C. 80a-3);
  (j)    ¨    Group, in accordance with § 240.13d-1(b)(1)(ii)(J).

 

Page 4 of 7 pages

Item 4.    Ownership.      
   (a)    Amount beneficially owned:      
      QVT Financial LP (“QVT Financial”) is the investment manager for QVT Fund LP (the “Fund”), which beneficially owns 729,745 shares of Common Stock. QVT Financial is also the investment manager for a separate discretionary account managed for Deutsche Bank AG (the “Separate Account”), which holds 137,265 shares of Common Stock. QVT Financial has the power to direct the vote and disposition of the Common Stock held by the Fund and the Separate Account. Accordingly, QVT Financial may be deemed to be the beneficial owner of an aggregate amount of 867,010 shares of Common Stock, consisting of the shares owned by the Fund and the shares held in the Separate Account.      
      QVT Financial GP LLC, as General Partner of QVT Financial, may be deemed to beneficially own the same number of shares of Common Stock reported by QVT Financial.      
      The reported share amounts for each reporting person reflect amounts held as of August 8, 2006, as adjusted for subsequent transactions through the date hereof.      
      Each of QVT Financial and QVT Financial GP LLC disclaim beneficial ownership of the shares owned by the Fund and the shares held in the Separate Account.      
   (b)    Percent of class:      
      See Item 11 of the Cover Pages to this Schedule 13G.      
   (c)    Number of shares as to which the person has:      
      (i)    Sole power to vote or to direct the vote      
         0      
      (ii)    Shared power to vote or to direct the vote      
         See item (a) above.      
      (iii)    Sole power to dispose or to direct the disposition of      
         0      
      (iv)    Shared power to dispose or to direct the disposition of      
         See item (a) above.      
Item 5.    Ownership of Five Percent or Less of a Class   
   If this statement is being filed to report the fact that as of the date hereof the reporting person has ceased to be the beneficial owner of more than five percent of the class of securities, check the following  ¨.   
Item 6.    Ownership of More than Five Percent on Behalf of Another Person.      
   Not Applicable
Item 7.    Identification and Classification of the Subsidiary Which Acquired the Security Being Reported on By the Parent Holding Company
   Not Applicable
Item 8.    Identification and Classification of Members of the Group      
   Not Applicable      
Item 9.    Notice of Dissolution of Group      
   Not Applicable      
Item 10.    Certification      
   By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect.      

 

Page 5 of 7 pages

SIGNATURE

After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

Dated: August 11, 2006

 

QVT FINANCIAL LP
By QVT Financial GP LLC,
its General Partner
By:  

/s/ Tracy Fu

Name:   Tracy Fu
Title:   Managing Member
By:  

/s/ Lars Bader

Name:   Lars Bader
Title:   Managing Member
QVT FINANCIAL GP LLC
By:  

/s/ Tracy Fu

Name:   Tracy Fu
Title:   Managing Member
By:  

/s/ Lars Bader

Name:   Lars Bader
Title:   Managing Member

 

Page 6 of 7 pages

EXHIBIT A

JOINT FILING AGREEMENT

The undersigned hereby agree that the statement on Schedule 13G signed by each of the undersigned shall be filed on behalf of each of the undersigned pursuant to and in accordance with the provisions of Rule 13d-1(k) under the Securities Exchange Act of 1934, as amended.

Dated: August 11, 2006

 

QVT FINANCIAL LP
By QVT Financial GP LLC,
its General Partner
By:  

/s/ Tracy Fu

Name:   Tracy Fu
Title:   Managing Member
By:  

/s/ Lars Bader

Name:   Lars Bader
Title:   Managing Member
QVT FINANCIAL GP LLC
By:  

/s/ Tracy Fu

Name:   Tracy Fu
Title:   Managing Member
By:  

/s/ Lars Bader

Name:   Lars Bader
Title:   Managing Member

 

Page 7 of 7 pages