Gladstone Investment Corporation Exits its Investment in Nth Degree

MCLEAN, Va., Dec. 11, 2019 (GLOBE NEWSWIRE) -- Gladstone Investment Corporation (Nasdaq: GAIN) (“Gladstone Investment”) announced today the sale of its portfolio company Nth Degree, Inc. (“Nth Degree”) to MSouth Equity Partners, an Atlanta-based private equity firm. As a result of this transaction, Gladstone Investment realized a significant capital gain on its equity investment and retained a minority equity investment in Nth Degree. Gladstone Investment acquired Nth Degree in partnership with Capitala Finance Corp. (Nasdaq: CPTA) and Nth Degree’s management team in 2015.  

Nth Degree, headquartered in Duluth, GA, is a market-leading provider of exhibit management services and event services to clients across the globe.  

“Gladstone Investment has enjoyed a strong partnership with Nth Degree’s management team over the last several years. We are proud to have supported the business through a period of rapid growth, both organically and through acquisition,” said Kyle Largent, Senior Managing Director of Gladstone Investment.  “The entire Nth Degree management team has achieved outstanding results in growing the business and we wish them continued success.”

“With the sale of Nth Degree and from inception in 2005, Gladstone Investment has exited 20 of its management supported buy-outs, generating significant net realized gains on these investments in the aggregate,” said David Dullum, President of Gladstone Investment. “Our strategy as a buyout fund, realizing gains on equity, while also generating strong current income during the investment period from debt investments alongside our equity investments, provides meaningful value to shareholders through stock appreciation and dividend growth.”

Gladstone Investment Corporation is a publicly traded business development company that seeks to make secured debt and equity investments in lower middle market private businesses in the United States in connection with acquisitions, changes in control and recapitalizations. Additional information can be found at www.gladstoneinvestment.com.

For Investor Relations inquiries related to any of the monthly distribution-paying Gladstone family of funds, please visit www.gladstone.com.

Forward-looking Statements:

The statements in this press release regarding the longer-term prospects of Gladstone Investment and Nth Degree and its management team, and the ability of Gladstone Investment and Nth Degree to be successful in the future are "forward-looking statements." These forward-looking statements inherently involve certain risks and uncertainties in predicting future results and conditions. Although these statements are based on Gladstone Investment's current beliefs that are believed to be reasonable as of the date of this press release, a number of factors could cause actual results and conditions to differ materially from these forward-looking statements, including those factors described from time to time in Gladstone Investment's filings with the Securities and Exchange Commission. Gladstone Investment undertakes no obligation to update or revise these forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.

SOURCE:  Gladstone Investment Corporation

For further information: Gladstone Investment Corporation, 703-287-5810

Released December 11, 2019