Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
x
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 2021
OR
o
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                     to
Commission file number: 814-00704
GLADSTONE INVESTMENT CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE83-0423116
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
1521 WESTBRANCH DRIVE, SUITE 10022102
MCLEAN, VIRGINIA(Zip Code)
(Address of principal executive offices)
(703) 287-5800
(Registrant’s telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year,
if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Common Stock, $0.001 par value per shareGAINThe Nasdaq Stock Market LLC
5.00% Notes due 2026GAINNThe Nasdaq Stock Market LLC
4.875% Notes due 2028GAINZThe Nasdaq Stock Market LLC
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes o No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
o
Accelerated filer
o
Non-accelerated filer
x
Smaller reporting company
o
Emerging growth company
o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x
The number of shares of the issuer’s Common Stock, $0.001 par value per share, outstanding as of February 7, 2022 was 33,205,023.


Table of Contents
GLADSTONE INVESTMENT CORPORATION
TABLE OF CONTENTS
Consolidated Schedules of Investments as of December 31, 2021 and March 31, 2021


Table of Contents
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
GLADSTONE INVESTMENT CORPORATION
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(DOLLAR AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)

December 31,
2021
March 31,
2021
ASSETS
Investments at fair value
Non-Control/Non-Affiliate investments (Cost of $385,819 and $297,400, respectively)
$424,918 $298,222 
Affiliate investments (Cost of $289,737 and $341,651, respectively)
275,820 307,977 
Control investments (Cost of $620 and $24,512, respectively)
 27,630 
Cash and cash equivalents
27,950 2,062 
Restricted cash and cash equivalents
694 336 
Interest receivable
2,755 3,369 
Due from administrative agent
1,807 1,164 
Deferred financing costs, net
1,030 1,359 
Other assets, net
1,121 1,612 
TOTAL ASSETS
$736,095 $643,731 
LIABILITIES
Borrowings:
Line of credit at fair value (Cost of $0 and $22,400, respectively)
$ $22,400 
Notes payable, net
255,939 123,883 
Secured borrowing
5,096 5,096 
Total borrowings
261,035 151,379 
Mandatorily redeemable preferred stock, $0.001 par value per share, $25.00 liquidation preference per share; 0 and 5,990,000 shares authorized; 0 and 3,774,853 shares issued and outstanding, respectively, net
 92,209 
Accounts payable and accrued expenses
1,346 563 
Interest payable
2,263 591 
Fees due to Adviser(A)
29,605 15,664 
Fee due to Administrator(A)
537 577 
Other liabilities
720 384 
TOTAL LIABILITIES
$295,506 $261,367 
Commitments and contingencies(B)
NET ASSETS
$440,589 $382,364 
ANALYSIS OF NET ASSETS
Common stock, $0.001 par value per share, 100,000,000 shares authorized, 33,205,023 shares issued and outstanding
$33 $33 
Capital in excess of par value
397,950 400,796 
Cumulative net unrealized appreciation (depreciation) of investments
25,182 (29,734)
(Overdistributed) underdistributed net investment income
(9,022)2,592 
Accumulated net realized gain in excess of distributions
26,446 8,677 
Total distributable earnings
42,606 (18,465)
TOTAL NET ASSETS
$440,589 $382,364 
NET ASSET VALUE PER SHARE
$13.27 $11.52 
(A)Refer to Note 4 — Related Party Transactions in the accompanying Notes to Consolidated Financial Statements for additional information.
(B)Refer to Note 10 — Commitments and Contingencies in the accompanying Notes to Consolidated Financial Statements for additional information.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.
2

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GLADSTONE INVESTMENT CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(DOLLAR AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)

Three Months Ended December 31,Nine Months Ended December 31,

2021202020212020
INVESTMENT INCOME
Interest income
Non-Control/Non-Affiliate investments
$8,240 $6,804 $22,524 $19,782 
Affiliate investments
5,100 5,123 20,609 14,087 
Control investments3 220 500 639 
Cash and cash equivalents
1 1 
Total interest income
13,344 12,148 43,634 34,513 
Dividend income
Non-Control/Non-Affiliate investments
 908 3 908 
Affiliate investments
 4,127 1,589 4,127 
Total dividend income
 5,035 1,592 5,035 
Success fee income
Non-Control/Non-Affiliate investments
 189 1,650 371 
Affiliate investments
3,398 — 6,430 — 
Total success fee income
3,398 189 8,080 371 
Total investment income
16,742 17,372 53,306 39,919 
EXPENSES
Base management fee(A)
3,630 3,116 10,527 8,961 
Loan servicing fee(A)
1,768 1,786 5,430 5,242 
Incentive fee(A)
2,587 3,756 22,186 3,454 
Administration fee(A)
437 382 1,407 1,218 
Interest expense on borrowings
3,918 1,092 9,300 3,064 
Dividends on mandatorily redeemable preferred stock
 2,291 2,306 6,551 
Amortization of deferred financing costs and discounts
447 451 1,355 1,291 
Professional fees
444 322 1,093 1,147 
Other general and administrative expenses
562 496 2,735 2,031 
Expenses before credits from Adviser
13,793 13,692 56,339 32,959 
Credits to base management fee – loan servicing fee(A)
(1,768)(1,786)(5,430)(5,242)
Credits to fees from Adviser - other(A)
(3,682)(789)(5,863)(2,594)
Total expenses, net of credits to fees
8,343 11,117 45,046 25,123 
NET INVESTMENT INCOME
8,399 6,255 8,260 14,796 
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss):
Non-Control/Non-Affiliate investments
113 5,816 256 5,876 
Affiliate investments
21,936 3,289 24,186 4,603 
Other
 — (1,998)— 
Total net realized gain
22,049 9,105 22,444 10,479 
Net unrealized appreciation (depreciation):
Non-Control/Non-Affiliate investments
6,275 (5,358)38,278 (18,372)
Affiliate investments
$(26,377)4,894 19,757 12,864 
Control investments
 375 (3,119)2,173 
Total net unrealized (depreciation) appreciation
(20,102)(89)54,916 (3,335)
Net realized and unrealized gain1,947 9,016 77,360 7,144 
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
$10,346 $15,271 $85,620 $21,940 
BASIC AND DILUTED PER COMMON SHARE:
Net investment income
$0.25 $0.19 $0.25 $0.45 
Net increase in net assets resulting from operations
$0.31 $0.46 $2.58 $0.66 
WEIGHTED-AVERAGE SHARES OF COMMON STOCK OUTSTANDING:
Basic and diluted
33,205,023 33,205,023 33,205,023 33,167,511 
(A)Refer to Note 4 — Related Party Transactions in the accompanying Notes to Consolidated Financial Statements for additional information.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.
3

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GLADSTONE INVESTMENT CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
(IN THOUSANDS)
(UNAUDITED)

20212020
NET ASSETS, MARCH 31
$382,364 $369,031 
OPERATIONS
Net investment (loss) income(2,304)4,173 
Net realized gain on investments1,929 753 
Net unrealized appreciation (depreciation) of investments47,514 (4,887)
Net increase in net assets from operations
47,139 39 
DISTRIBUTIONS(A)
Distributions to common stockholders from net investment income ($0.20 and $0.28 per share, respectively)
(6,593)(9,272)
Distributions to common stockholders from net realized gains ($0.07 and $0.02 per share, respectively)
(2,372)(666)
Net decrease in net assets from distributions
(8,965)(9,938)
CAPITAL ACTIVITY
Issuance of common stock
 1,772 
Discounts, commissions, and offering costs for issuance of common stock
 (35)
Net increase in net assets from capital activity
 1,737 
NET INCREASE (DECREASE) IN NET ASSETS
38,174 (8,162)
NET ASSETS, JUNE 30
$420,538 $360,869 
OPERATIONS
Net investment income$2,165 $4,368 
Net realized gain on investments464 621 
Net realized loss on other(1,998)— 
Net unrealized appreciation of investments27,504 1,641 
Net increase in net assets from operations
28,135 6,630 
DISTRIBUTIONS(A)
Distributions to common stockholders from net investment income ($0.16 and $0.20 per share, respectively)
(5,490)(6,553)
Distributions to common stockholders from net realized gains ($0.08 and $0.01 per share, respectively)
(2,482)(420)
Net decrease in net assets from distributions
(7,972)(6,973)
NET INCREASE (DECREASE) IN NET ASSETS
20,163 (343)
NET ASSETS, SEPTEMBER 30
$440,701 $360,526 
OPERATIONS
Net investment income$8,399 $6,255 
Net realized gain on investments22,049 9,105 
Net unrealized depreciation of investments(20,102)(89)
Net increase in net assets from operations
10,346 15,271 
DISTRIBUTIONS(A)
Distributions to common stockholders from net investment income ($0.23 and $0.20 per share, respectively)
(7,456)(6,619)
Distributions to common stockholders from net realized gains ($0.09 and $0.01 per share, respectively)
(3,002)(355)
Net decrease in net assets from distributions
(10,458)(6,974)
NET (DECREASE) INCREASE IN NET ASSETS
(112)8,297 
NET ASSETS, DECEMBER 31
$440,589 $368,823 
(A)Refer to Note 9 — Distributions to Common Stockholders in the accompanying Notes to Consolidated Financial Statements for additional information.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.
4

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GLADSTONE INVESTMENT CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
(UNAUDITED)

Nine Months Ended December 31,

20212020
CASH FLOWS FROM OPERATING ACTIVITIES
Net increase in net assets resulting from operations
$85,620 $21,940 
Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities:
Purchase of investments
(84,550)(89,571)
Principal repayments of investments
46,898 20,734 
Net proceeds from the sale of investments
50,018 30,515 
Net realized gain on investments
(24,442)(10,479)
Net realized loss on other
1,998 — 
Net unrealized (appreciation) depreciation of investments
(54,916)3,335 
Amortization of premiums, discounts, and acquisition costs, net
(14)(14)
Amortization of deferred financing costs and discounts
1,355 1,291 
Bad debt expense, net of recoveries
698 61 
Changes in assets and liabilities:
Decrease in interest receivable
156 1,610 
Increase in due from administrative agent
(643)(3,608)
Decrease in other assets, net
378 
Increase (decrease) in accounts payable and accrued expenses
782 (93)
Increase in interest payable
1,672 110 
Increase in fees due to Adviser(A)
13,887 4,663 
Decrease in fee due to Administrator(A)
(39)(120)
Increase (decrease) in other liabilities
435 (12,934)
Net cash provided by (used in) operating activities39,293 (32,559)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock
 1,772 
Discounts, commissions, and offering costs for issuance of common stock
 (31)
Proceeds from line of credit
111,700 111,700 
Repayments on line of credit
(134,100)(76,900)
Proceeds from issuance of notes payable
134,550 — 
Proceeds from issuance of mandatorily redeemable preferred stock
 19,276 
Redemption of mandatorily redeemable preferred stock
(94,371)— 
Deferred financing and offering costs
(3,431)(773)
Distributions paid to common stockholders
(27,395)(23,885)
Net cash (used in) provided by financing activities
(13,047)31,159 

NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, RESTRICTED CASH, AND RESTRICTED CASH EQUIVALENTS
26,246 (1,400)

CASH, CASH EQUIVALENTS, RESTRICTED CASH, AND RESTRICTED CASH EQUIVALENTS, BEGINNING OF PERIOD
2,398 4,060 

CASH, CASH EQUIVALENTS, RESTRICTED CASH, AND RESTRICTED CASH EQUIVALENTS, END OF PERIOD
$28,644 $2,660 

CASH PAID FOR INTEREST
$6,437 $2,370 
(A)Refer to Note 4 — Related Party Transactions in the accompanying Notes to Consolidated Financial Statements for additional information.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.
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GLADSTONE INVESTMENT CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2021
(DOLLAR AMOUNTS IN THOUSANDS)
(UNAUDITED)
Company and Investment(A)(B)(D)(E)
Principal/Shares/
Units(F)(J)
CostFair Value
NON-CONTROL/NON-AFFILIATE INVESTMENTS(N) – 96.7%
Secured First Lien Debt – 53.0%
Diversified/Conglomerate Manufacturing – 1.0%
Phoenix Door Systems, Inc. – Line of Credit, $600 available (L+7.0%, 9.0% Cash (0.3% Unused Fee), Due 3/2024)(K)
$1,550 $1,550 $1,504 
Phoenix Door Systems, Inc. – Term Debt (L+11.0%, 13.0% Cash, Due 9/2024)(K)
3,200 3,200 3,104 
4,750 4,608 
Diversified/Conglomerate Services –29.2%
Bassett Creek Services, Inc. – Term Debt (L+10.0%, 12.0% Cash, Due 4/2023)(L)
48,000 48,000 48,000 
Counsel Press, Inc. – Term Debt (L+11.8%, 12.8% Cash, Due 3/2023)(L)
21,100 21,100 21,100 
Counsel Press, Inc. – Term Debt (L+13.0%, 14.0% Cash, Due 3/2023)(L)
6,400 6,400 6,400 
Horizon Facilities Services, Inc. – Term Debt (L+9.5%, 12.0% Cash, Due 6/2024)(L)
27,700 27,700 27,700 
Mason West, LLC – Term Debt (L+10.0%, 12.5% Cash, Due 7/2025)(L)
25,250 25,250 25,250 
128,450 128,450 
Healthcare, Education, and Childcare – 4.5%
Educators Resource, Inc. – Term Debt (L+10.5%, 13.0% Cash, Due 11/2023)(L)
20,000 20,000 20,000 

Home and Office Furnishings, Housewares, and Durable Consumer Products – 5.6%
Brunswick Bowling Products, Inc. – Term Debt (L+10.0%, 12.0% Cash, Due 1/2023)(L)
17,700 17,700 17,700 
Brunswick Bowling Products, Inc. – Term Debt (L+10.0%, 12.0% Cash, Due 1/2023)(L)
6,850 6,850 6,850 

24,550 24,550 
Hotels, Motels, Inns, and Gaming Total –6.3%
Nocturne Villa Rentals, Inc. – Line of Credit, $2,000 available (L+8.0%, 10.0% Cash, Due 6/2023)(L)
— — — 
Nocturne Villa Rentals, Inc. – Term Debt (L+10.5%, 12.5% Cash, Due 6/2026)(L)
27,700 27,700 27,700 

27,700 27,700 
Leisure, Amusement, Motion Pictures, and Entertainment – 6.4%
Schylling, Inc. – Term Debt (L+11.0%, 13.0% Cash, Due 8/2024)(L)
13,081 13,081 13,081 
Schylling, Inc. – Term Debt (L+11.0%, 13.0% Cash, Due 8/2024)(L)
8,500 8,500 8,500 
Schylling, Inc. – Term Debt (L+11.0%, 13.0% Cash, Due 8/2024)(L)
6,400 6,400 6,400 

27,981 27,981 
Total Secured First Lien Debt
$233,431 $233,289 
Secured Second Lien Debt – 15.2%
Aerospace and Defense – 5.8%
Galaxy Technologies Holdings, Inc. – Term Debt (L+4.1%, 7.1% Cash, Due 10/2026)(L)
$6,500 $6,500 $6,500 
Galaxy Technologies Holdings, Inc. – Term Debt (L+7.0%, 10.0% Cash, Due 10/2026)(L)
18,796 18,796 18,796 

25,296 25,296 
Automobile – 0.9%
Country Club Enterprises, LLC – Term Debt (L+8.0%, 10.0% Cash, Due 2/2022)(K)
4,000 4,000 3,980 
Country Club Enterprises, LLC – Guaranty ($1,000)(T)
— — — 
4,000 3,980 
Cargo Transport – 3.0%
Diligent Delivery Systems – Term Debt (L+9.0%, 11.0% Cash, Due 11/2022)(K)
13,000 12,983 13,064 
Home and Office Furnishings, Housewares, and Durable Consumer Products – 3.0%
Ginsey Home Solutions, Inc. – Term Debt (L+10.0%, 13.5% Cash, Due 1/2025)(H)(L)
13,300 13,300 13,300 
Machinery (Non-Agriculture, Non-Construction, and Non-Electronic) – 2.5%
SBS Industries Holdings, Inc. – Term Debt (L+7.0%, 9.0% Cash, Due 11/2024)(G)(K)
11,736 11,736 10,885 
Total Secured Second Lien Debt
$67,315 $66,525 
Preferred Equity – 28.1%
Diversified/Conglomerate Services – 12.4%
Bassett Creek Services, Inc. – Preferred Stock(C)(L)
4,900 $4,900 $7,033 
Counsel Press, Inc. – Preferred Stock(C)(L)
6,995 6,995 24,714 
Horizon Facilities Services, Inc. – Preferred Stock(C)(L)
10,080 10,080 15,209 
Mason West, LLC – Preferred Stock(C)(L)
11,206 11,206 7,556 
33,181 54,512 
Healthcare, Education, and Childcare – 4.6%
Educators Resource, Inc. – Preferred Stock(C)(L)
8,560 8,560 20,070 
6

Table of Contents
GLADSTONE INVESTMENT CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
DECEMBER 31, 2021
(DOLLAR AMOUNTS IN THOUSANDS)
(UNAUDITED)
Company and Investment(A)(B)(D)(E)
Principal/Shares/
Units(F)(J)
CostFair Value

Home and Office Furnishings, Housewares, and Durable Consumer Products – 4.4%
Brunswick Bowling Products, Inc. – Preferred Stock(C)(L)
6,653 6,653 14,856 
Ginsey Home Solutions, Inc. – Preferred Stock(C)(L)
19,280 9,583 4,538 
16,236 19,394 
Hotels, Motels, Inns, and Gaming Total -1.8%
Nocturne Villa Rentals, Inc.- Preferred Stock (C)(L)
6,600 6,600 8,104 
Leisure, Amusement, Motion Pictures, and Entertainment – 4.9 %
Schylling, Inc. – Preferred Stock(C)(L)
4,000 4,000 21,390 
Machinery (Non-Agriculture, Non-Construction, and Non-Electronic) – 0.0%
SBS Industries Holdings, Inc. – Preferred Stock(C)(L)
27,705 2,771  
Total Preferred Equity
$71,348 $123,470 
Common Equity/Equivalents – 0.4%
Aerospace and Defense -0.1%
Galaxy Technologies Holdings, Inc. – Common Stock(C)(L)
16,957 $11,513 $296 

Cargo Transport – 0.3%
Diligent Delivery Systems – Common Stock Warrants(C)(L)
%500 1,258 
Diversified/Conglomerate Manufacturing – 0.0%
Phoenix Door Systems, Inc. – Common Stock(C)(L)
3,195 1,452  
Home and Office Furnishings, Housewares, and Durable Consumer Products – 0.0%
Ginsey Home Solutions, Inc. – Common Stock(C)(L)
63,747 8  
Machinery (Non-Agriculture, Non-Construction, and Non-Electronic) – 0.0%
SBS Industries Holdings, Inc. – Common Stock(C)(L)
221,500 222  

Personal and Non-Durable Consumer Products (Manufacturing Only) – 0.0%
Funko Acquisition Holdings, LLC(M) – Common Units(C)(S)
6,290 30 80 
Total Common Equity/Equivalents
$13,725 $1,634 
Total Non-Control/Non-Affiliate Investments$385,819 $424,918 
AFFILIATE INVESTMENTS(O) – 62.6%
Secured First Lien Debt – 45.4%
Chemicals, Plastics, and Rubber – 6.0%
PSI Molded Plastics, Inc. – Term Debt (L+5.5%, 7.0% Cash, Due 1/2024)(L)
$26,618 $26,618 $26,618 
Diversified/Conglomerate Manufacturing –2.1%
Edge Adhesives Holdings, Inc.(M) – Term Debt (L+10.5%, 12.5% Cash, Due 8/2024)(K)
9,210 9,210 9,117 
Diversified/Conglomerate Services – 22.4%
ImageWorks Display and Marketing Group, Inc. – Term Debt (L+11.0%, 13.0% Cash, Due 11/2022)(L)
22,000 22,000 22,000 
J.R. Hobbs Co. - Atlanta, LLC - Term Debt (L+6.0%, 8.0% Cash, Due 10/2024) (G)(K)
36,000 36,000 33,120 
J.R. Hobbs Co. - Atlanta, LLC – Term Debt (L+10.3%, 11.8% Cash, Due 10/2024) (G)(K)
16,500 16,500 15,180 
The Maids International, LLC – Term Debt (L+10.5%, 12.0% Cash, Due 3/2025)(L)
28,560 28,560 28,560 
103,060 98,860 
Home and Office Furnishings, Housewares, and Durable Consumer Products – 6.1%
Old World Christmas, Inc. – Secured First Lien Term Loan (L+9.5%, 11.0% Cash, Due 12/2025)(L)
27,000 27,000 27,000 
Mining, Steel, Iron and Non-Precious Metals Total – 4.1%
Utah Pacific Bridge & Steel, Ltd., $2,000 available (L+8.5%, 10.0% Cash, Due 7/2022)(L)
— — — 
Utah Pacific Bridge & Steel, Ltd. (L+10.0%, 11.5% Cash, Due 7/2026)(L)
18,250 18,250 18,250 
18,250 18,250 
Personal and Non-Durable Consumer Products (Manufacturing Only) – 0.9%
The Mountain Corporation – Line of Credit, $0 available (L+5.0%, 9.0% Cash, Due 5/2022)(G)(L)
3,400 3,400 3,400 
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Table of Contents
GLADSTONE INVESTMENT CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
DECEMBER 31, 2021
(DOLLAR AMOUNTS IN THOUSANDS)
(UNAUDITED)
Company and Investment(A)(B)(D)(E)
Principal/Shares/
Units(F)(J)
CostFair Value
The Mountain Corporation – Line of Credit, $0 available (L+5.0%, 9.0% Cash, Due 5/2022)(G)(L)
500 500 500 
3,900 3,900 
Telecommunications – 3.8%
B+T Group Acquisition, Inc.(M) – Line of Credit, $0 available (L+11.0%, 13.0% Cash, Due 12/2024)(L)
2,800 2,800 2,800 
B+T Group Acquisition, Inc.(M) – Term Debt (L+11.0%, 13.0% Cash, Due 12/2024)(L)
14,000 14,000 14,000 
16,800 16,800 
Total Secured First Lien Debt$204,838 $200,545 
Secured Second Lien Debt – 0.4%
Personal and Non-Durable Consumer Products (Manufacturing Only) – 0.4%
The Mountain Corporation – Term Debt (L+4.0%, 7.0% Cash, Due 4/2024)(G)(L)
$11,700 $11,700 $1,568 
The Mountain Corporation – Delayed Draw Term Debt, $0 available (L+4.0%, 7.0% Cash, Due 4/2024)(G)(L)
1,500 1,500 201 
13,200 1,769 
Total Secured Second Lien Debt
$13,200 $1,769 
Preferred Equity – 16.6%
Chemicals, Plastics, and Rubber – 0.0%
PSI Molded Plastics, Inc. – Preferred Stock(C)(L)
158,598 $19,730 $— 
Diversified/Conglomerate Manufacturing – 0.0%
Edge Adhesives Holdings, Inc.(M) – Preferred Stock(C)(L)
8,199 8,199 — 
Diversified/Conglomerate Services – 4.5%
ImageWorks Display and Marketing Group, Inc. – Preferred Stock(C)(L)
67,490 6,749 16,139 
J.R. Hobbs Co. – Atlanta, LLC – Preferred Stock(C)(L)
10,920 10,920 — 
The Maids International, LLC – Preferred Stock(C)(L)
6,640 6,640 3,398 
24,309 19,537 
Home and Office Furnishings, Housewares, and Durable Consumer Products – 7.7%
Old World Christmas, Inc. – Preferred Stock(C)(L)
6,180 — 33,807 
Mining, Steel, Iron and Non-Precious Metals – 1.4%
Utah Pacific Bridge & Steel, Ltd. - Preferred Stock(C)(L)
6,000 6,000 6,000 
Personal and Non-Durable Consumer Products (Manufacturing Only) – 0.0%
The Mountain Corporation – Preferred Stock(C)(L)
6,899 6,899 — 
6,899  
Telecommunications – 3.0%
B+T Group Acquisition, Inc.(M) – Preferred Stock(C)(L)
14,304 4,722 13,290 
Total Preferred Equity
$69,859 $72,634 
Common Equity/Equivalents – 0.2%
Diversified/Conglomerate Services – 0.0%
Nth Degree Investment Group, LLC – Common Units(C)(L)
14,360,000 $1,219 100 
Personal and Non-Durable Consumer Products (Manufacturing Only) – 0.0%
The Mountain Corporation – Common Stock(C)(L)
751 1  
Telecommunications – 0.2%
B+T Group Acquisition, Inc.(M) – Common Stock Warrant(C)(L)
3.5 % 772 
Total Common Equity/Equivalents$1,220 $872 
Total Affiliate Investments$289,117 $275,820 
CONTROL INVESTMENTS(P) –0.0%
Common Equity/Equivalents – 0.0%
Leisure, Amusement, Motion Pictures, and Entertainment – 0.0%
Gladstone SOG Investments, Inc. - Common Stock(C)(I)(L)
100 $620 — 
Total Common Equity/Equivalents$620 $ 
Total Control Investments$620 $ 
TOTAL INVESTMENTS – 159.3%$675,556 $700,738 
8

Table of Contents
GLADSTONE INVESTMENT CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
DECEMBER 31, 2021
(DOLLAR AMOUNTS IN THOUSANDS)
(UNAUDITED)
(A)Certain of the securities listed are issued by affiliate(s) of the indicated portfolio company. The majority of the securities listed, totaling $524.7 million at fair value, are pledged as collateral to our revolving line of credit, as described further in Note 5 — Borrowings in the accompanying Notes to Consolidated Financial Statements. Additionally, under Section 55 of the Investment Company Act of 1940, as amended (the “1940 Act”), we may not acquire any non-qualifying assets unless, at the time such acquisition is made, qualifying assets represent at least 70% of our total assets. As of December 31, 2021, our investment in Funko Acquisition Holdings, LLC (“Funko”) was considered a non-qualifying asset under Section 55 of the 1940 Act and represented less than 0.1% of total investments, at fair value.
(B)Unless indicated otherwise, all cash interest rates are indexed to 30-day London Interbank Offered Rate (“LIBOR” or “L”), which was 0.1% as of December 31, 2021. If applicable, paid-in-kind interest rates are noted separately from the cash interest rate. Certain securities are subject to an interest rate floor. The cash interest rate is the greater of the floor or 30-day LIBOR plus a spread. Due dates represent the contractual maturity date.
(C)Security is non-income producing.
(D)Category percentages represent the fair value of each category and subcategory as a percentage of net assets as of December 31, 2021.
(E)Unless indicated otherwise, all of our investments are valued using Level 3 inputs within the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 820, “Fair Value Measurements and Disclosures” (“ASC 820”) fair value hierarchy. Refer to Note 3 — Investments in the accompanying Notes to Consolidated Financial Statements for additional information.
(F)Where applicable, aggregates all shares of a class of stock owned without regard to specific series owned within such class (some series of which may or may not be voting shares) or aggregates all warrants to purchase shares of a class of stock owned without regard to specific series of such class of stock such warrants allow us to purchase.
(G)Debt security is on non-accrual status.
(H)$5.1 million of the debt security was participated to a third-party but is accounted for as collateral for a secured borrowing under accounting principles generally accepted in the U.S. and presented as Secured borrowing on our accompanying Consolidated Statements of Assets and Liabilities as of December 31, 2021.
(I)In connection with the sale of SOG Specialty Knives & Tools, LLC, we retained a common stock investment in the intermediary entity, Gladstone SOG Investments, Inc.
(J)Represents the principal balance for debt investments and the number of shares/units held for equity investments. Warrants are represented as a percentage of ownership, as applicable.
(K)Fair value was based on internal yield analysis or on estimates of value submitted by ICE Data Pricing and Reference Data, LLC. Refer to Note 3 — Investments in the accompanying Notes to Consolidated Financial Statements for additional information.
(L)Fair value was based on the total enterprise value of the portfolio company, which is generally allocated to the portfolio company’s securities in order of their relative priority in the capital structure. Refer to Note 3 — Investments in the accompanying Notes to Consolidated Financial Statements for additional information.
(M)One of our affiliated funds, Gladstone Capital Corporation, co-invested with us in this portfolio company pursuant to an exemptive order granted by the U.S. Securities and Exchange Commission.
(N)Non-Control/Non-Affiliate investments, as defined by the 1940 Act, are those that are neither Control nor Affiliate investments and in which we own less than 5.0% of the issued and outstanding voting securities.
(O)Affiliate investments, as defined by the 1940 Act, are those that are not Control investments and in which we own, with the power to vote, between and inclusive of 5.0% and 25.0% of the issued and outstanding voting securities.
(P)Control investments, as defined by the 1940 Act, are those where we have the power to exercise a controlling influence over the management or policies of the portfolio company, which may include owning, with the power to vote, more than 25.0% of the issued and outstanding voting securities.
(Q)Reserved.
(R)Reserved.
(S)Our investment in Funko was valued using Level 2 inputs within the ASC 820 fair value hierarchy. Our common units in Funko are convertible into class A common stock in Funko, Inc. upon meeting certain requirements. Fair value was based on the closing market price of shares of Funko, Inc. as of the reporting date, less a discount for lack of marketability. Funko, Inc. is traded on the Nasdaq Global Select Market under the trading symbol “FNKO.” Refer to Note 3 — Investments in the accompanying Notes to Consolidated Financial Statements for additional information.
(T)Refer to Note 10 — Commitments and Contingencies in the accompanying Notes to Consolidated Financial Statements for additional information regarding this guaranty.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.
9

Table of Contents
GLADSTONE INVESTMENT CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS
MARCH 31, 2021
(DOLLAR AMOUNTS IN THOUSANDS)
Company and Investment(A)(B)(D)(E)
Principal/Shares/
Units(F)(J)
CostFair Value
NON-CONTROL/NON-AFFILIATE INVESTMENTS(N) – 77.9%
Secured First Lien Debt – 48.9%
Diversified/Conglomerate Manufacturing – 1.1%
Phoenix Door Systems, Inc. – Line of Credit, $0 available (L+7.0%, 9.0% Cash (0.3% Unused Fee), Due 3/2022)(L)
$1,150 $1,150 $1,150 
Phoenix Door Systems, Inc. – Term Debt (L+11.0%, 13.0% Cash, Due 9/2024)(L)
3,200 3,200 3,200 
4,350 4,350 
Diversified/Conglomerate Services – 30.6%
Bassett Creek Services, Inc. – Term Debt (L+10.0%, 12.0% Cash, Due 4/2023)(K)
37,500 37,500 36,656 
Counsel Press, Inc. – Term Debt (L+11.8%, 12.8% Cash, Due 3/2023)(L)
21,100 21,100 21,100 
Counsel Press, Inc. – Term Debt (L+13.0%, 14.0% Cash, Due 3/2023)(L)
6,400 6,400 6,400 
Horizon Facilities Services, Inc. – Term Debt (L+9.5%, 12.0% Cash, Due 6/2024)(G)(L)
27,700 27,700 27,700 
Mason West, LLC – Line of Credit, $3,000 available (L+8.0%, 10.0% Cash, Due 7/2021)(L)
— — — 
Mason West, LLC – Term Debt (L+10.0%, 12.5% Cash, Due 7/2025)(L)
25,250 25,250 25,250 
117,950 117,106 
Healthcare, Education, and Childcare – 5.2%
Educators Resource, Inc. – Term Debt (L+10.5%, 13.0% Cash, Due 11/2023)(L)
20,000 20,000 20,000 
Home and Office Furnishings, Housewares, and Durable Consumer Products – 6.4%
Brunswick Bowling Products, Inc. – Term Debt (L+10.0%, 12.0% Cash, Due 1/2023)(L)
17,700 17,700 17,700 
Brunswick Bowling Products, Inc. – Term Debt (L+10.0%, 12.0% Cash, Due 1/2023)(L)
6,850 6,850 6,850 
24,550 24,550 
Leisure, Amusement, Motion Pictures, and Entertainment – 5.6%
Schylling, Inc. – Term Debt (L+11.0%, 13.0% Cash, Due 8/2024)(L)
13,081 13,081 13,081 
Schylling, Inc. – Term Debt (L+11.0%, 13.0% Cash, Due 8/2024)(L)
8,500 8,500 8,500 
21,581 21,581 
Total Secured First Lien Debt
$188,431 $187,587 
Secured Second Lien Debt – 11.0%
Automobile – 1.0%
Country Club Enterprises, LLC – Term Debt (L+8.0%, 10.0% Cash, Due 2/2022)(K)
$4,000 $4,000 $3,890 
Country Club Enterprises, LLC – Guaranty ($1,000)(T)
— — — 
4,000 3,890 
Cargo Transport – 3.4%
Diligent Delivery Systems – Term Debt (L+9.0%, 11.0% Cash, Due 11/2022)(Q)
13,000 12,970 13,000 
Home and Office Furnishings, Housewares, and Durable Consumer Products – 3.5%
Ginsey Home Solutions, Inc. – Term Debt (L+10.0%, 13.5% Cash, Due 1/2025)(H)(L)
13,300 13,300 13,300 
Machinery (Non-Agriculture, Non-Construction, and Non-Electronic) – 3.1%
SBS Industries Holdings, Inc. – Term Debt (L+7.0%, 9.0% Cash, Due 11/2024)(L)
11,736 11,736 11,736 
Total Secured Second Lien Debt
$42,006 $41,926 
Preferred Equity – 17.3%
Diversified/Conglomerate Services – 9.2%
Bassett Creek Services, Inc. – Preferred Stock(C)(L)
4,900 $4,900 $— 
Counsel Press, Inc. – Preferred Stock(C)(L)
6,995 6,995 21,348 
Horizon Facilities Services, Inc. – Preferred Stock(C)(L)
10,080 10,080 3,663 
Mason West, LLC – Preferred Stock(C)(L)
11,206 11,206 9,774 
33,181 34,785 
Healthcare, Education, and Childcare – 2.9%
Educators Resource, Inc. – Preferred Stock(C)(L)
8,560 8,560 11,194 
Home and Office Furnishings, Housewares, and Durable Consumer Products – 2.5%
Brunswick Bowling Products, Inc. – Preferred Stock(C)(L)
6,653 6,653 1,015 
Ginsey Home Solutions, Inc. – Preferred Stock(C)(L)
19,280 9,583 8,550 
16,236 9,565 
Leisure, Amusement, Motion Pictures, and Entertainment – 2.1%
Schylling, Inc. – Preferred Stock(C)(L)
4,000 4,000 7,936 
Machinery (Non-Agriculture, Non-Construction, and Non-Electronic) – 0.6%
SBS Industries Holdings, Inc. – Preferred Stock(C)(L)
27,705 2,771 2,463 
10

Table of Contents
GLADSTONE INVESTMENT CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS
MARCH 31, 2021
(DOLLAR AMOUNTS IN THOUSANDS)
Company and Investment(A)(B)(D)(E)
Principal/Shares/
Units(F)(J)
CostFair Value
Total Preferred Equity
$64,748 $65,943 
Common Equity/Equivalents – 0.7%
Cargo Transport – 0.6%
Diligent Delivery Systems – Common Stock Warrants(C)(Q)
%

$500 $2,211 
Diversified/Conglomerate Manufacturing – 0.1%
Phoenix Door Systems, Inc. – Common Stock(C)(L)
3,195 1,452 460 
Home and Office Furnishings, Housewares, and Durable Consumer Products – 0.0%
Ginsey Home Solutions, Inc. – Common Stock(C)(L)
63,747 8  
Machinery (Non-Agriculture, Non-Construction, and Non-Electronic) – 0.0%
SBS Industries Holdings, Inc. – Common Stock(C)(L)
221,500 222  

Personal and Non-Durable Consumer Products (Manufacturing Only) – 0.0%
Funko Acquisition Holdings, LLC(M) – Common Units(C)(S)
7,178 33 95 
Total Common Equity/Equivalents
$2,215 $2,766 
Total Non-Control/Non-Affiliate Investments$297,400 $298,222 
AFFILIATE INVESTMENTS(O) – 80.9%
Secured First Lien Debt – 47.6%
Beverage, Food, and Tobacco – 2.4%
Head Country, Inc. – Term Debt (L+10.5%, 12.5% Cash, Due 2/2023)(L)
$9,050 $9,050 $9,050 
Chemicals, Plastics, and Rubber – 6.0%
PSI Molded Plastics, Inc. – Term Debt (L+5.5%, 7.0% Cash, Due 1/2024)(L)
26,618 26,618 22,985 
Diversified/Conglomerate Manufacturing – 5.4%
D.P.M.S., Inc. – Line of Credit, $0 available (L+6.5%, 9.0% Cash (0.5% Unused Fee), Due 10/2023)(L)
1,500 1,500 1,500 
D.P.M.S., Inc. – Term Debt (10.0% Cash, Due 10/2023)(I)(L)
10,796 10,796 5,751 
Edge Adhesives Holdings, Inc.(M) – Line of Credit, $0 available (L+8.0%, 10.0% Cash, Due 9/2021)(K)
1,020 1,020 1,005 
Edge Adhesives Holdings, Inc.(M) – Term Debt (L+10.5%, 12.5% Cash, Due 2/2022)(K)
9,300 9,300 9,161 
Edge Adhesives Holdings, Inc.(M) – Term Debt (L+11.8%, 13.8% Cash, Due 2/2022)(K)
3,000 3,000 2,955 
25,616 20,372 
Diversified/Conglomerate Services – 13.3%
ImageWorks Display and Marketing Group, Inc. – Term Debt (L+11.0%, 13.0% Cash, Due 11/2022)(L)
22,000 22,000 22,000 
The Maids International, LLC – Term Debt (L+10.5%, 12.0% Cash, Due 3/2025)(L)
28,560 28,560 28,560 
50,560 50,560 
Home and Office Furnishings, Housewares, and Durable Consumer Products – 7.1%
Old World Christmas, Inc. – Secured First Lien Term Loan (L+9.5%, 11.0% Cash, Due 12/2025)(L)
27,000 27,000 27,000 
Leisure, Amusement, Motion Pictures, and Entertainment – 2.3%
SOG Specialty Knives & Tools, LLC – Term Debt (Due 12/2023)(L)(R)
538 538 538 
SOG Specialty Knives & Tools, LLC – Term Debt (L+4.0%, 6.0% Cash, Due 12/2023)(L)
8,399 8,399 8,399 
8,937 8,937 
Personal and Non-Durable Consumer Products (Manufacturing Only) – 7.0%
The Mountain Corporation – Line of Credit, $0 available (L+5.0%, 9.0% Cash, Due 4/2021)(G)(L)
3,400 3,400 3,400 
Pioneer Square Brands, Inc. – Term Debt (L+12.0%, 13.0% Cash, Due 8/2022)(Q)
23,100 23,100 23,215 
26,500 26,615 
Telecommunications – 4.1%
B+T Group Acquisition, Inc.(M) – Line of Credit, $0 available (L+11.0%, 13.0% Cash, Due 12/2021)(G)(K)
2,800 2,800 2,597 
B+T Group Acquisition, Inc.(M) – Term Debt (L+11.0%, 13.0% Cash, Due 12/2021)(G)(K)
14,000 14,000 12,985 
16,800 15,582 
Total Secured First Lien Debt$191,081 $181,101 
Secured Second Lien Debt – 12.6%
11

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GLADSTONE INVESTMENT CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS
MARCH 31, 2021
(DOLLAR AMOUNTS IN THOUSANDS)
Company and Investment(A)(B)(D)(E)
Principal/Shares/
Units(F)(J)
CostFair Value
Diversified/Conglomerate Services – 12.0%
J.R. Hobbs Co. – Atlanta, LLC – Line of Credit, $0 available (L+6.0%, 8.0% Cash, Due 10/2024)(K)
$10,000 $10,000 $9,975 
J.R. Hobbs Co. – Atlanta, LLC – Term Debt (L+10.3%, 11.8% Cash, Due 10/2024)(K)
36,000 36,000 35,910 
46,000 45,885 
Personal and Non-Durable Consumer Products (Manufacturing Only) – 0.6%
The Mountain Corporation – Term Debt (L+4.0%, 7.0% Cash, Due 4/2024)(G)(L)
11,700 11,700 1,849 
The Mountain Corporation – Delayed Draw Term Debt, $0 available (L+4.0%, 7.0% Cash, Due 4/2024)(G)(L)
1,500 1,500 237 
13,200 2,086 
Total Secured Second Lien Debt
$59,200 $47,971 
Preferred Equity – 20.7%
Beverage, Food, and Tobacco – 1.7%
Head Country, Inc. – Preferred Stock(C)(L)
4,000 $4,000 $6,469 
Chemicals, Plastics, and Rubber – 0.0%
PSI Molded Plastics, Inc. – Preferred Stock(C)(L)
158,598 19,730  
Diversified/Conglomerate Manufacturing – 0.0%
Channel Technologies Group, LLC – Preferred Stock(C)(L)
2,279 1,841 — 
Edge Adhesives Holdings, Inc.(M) – Preferred Stock(C)(L)
8,199 8,199 — 
10,040  
Diversified/Conglomerate Services – 3.5%
ImageWorks Display and Marketing Group, Inc. – Preferred Stock(C)(L)
67,490 6,749 9,819 
J.R. Hobbs Co. – Atlanta, LLC – Preferred Stock(C)(L)
10,920 10,920 — 
The Maids International, LLC – Preferred Stock(C)(L)
6,640 6,640 3,560 
24,309 13,379 
Home and Office Furnishings, Housewares, and Durable Consumer Products – 5.3%
Old World Christmas, Inc. – Preferred Stock(C)(L)
6,180  20,248 
Leisure, Amusement, Motion Pictures, and Entertainment – 1.8%
SOG Specialty Knives & Tools, LLC – Preferred Stock(C)(L)
14,949 14,949 6,754 
Personal and Non-Durable Consumer Products (Manufacturing Only) – 8.4%
The Mountain Corporation – Preferred Stock(C)(L)
6,899 6,899 — 
Pioneer Square Brands, Inc. – Preferred Stock(C)(Q)
5,502 5,500 32,055 
12,399 32,055 
Telecommunications – 0.0%
B+T Group Acquisition, Inc.(M) – Preferred Stock(C)(L)
14,304 4,722  
Total Preferred Equity
$90,149 $78,905 
Common Equity/Equivalents – 0.0%
Diversified/Conglomerate Manufacturing – 0.0%
Channel Technologies Group, LLC – Common Stock(C)(L)
2,319,184 $— $— 
D.P.M.S., Inc. – Common Stock(C)(L)
627 1 — 
1  
Diversified/Conglomerate Services – 0.0%
Nth Degree Investment Group, LLC – Common Units(C)(L)
14,360,000 1,219  
Personal and Non-Durable Consumer Products (Manufacturing Only) – 0.0%
The Mountain Corporation – Common Stock(C)(L)
751 1  
Telecommunications – 0.0%
B+T Group Acquisition, Inc.(M) – Common Stock Warrant(C)(L)
3.5 %—  
Total Common Equity/Equivalents$1,221 $ 
Total Affiliate Investments$341,651 $307,977 
CONTROL INVESTMENTS(P) – 7.2%:
Secured Second Lien Debt – 3.4%
Aerospace and Defense – 3.4%
Galaxy Technologies, Inc. – Line of Credit, $0 available (L+4.5%, 6.5% Cash (0.5% Unused Fee), Due 8/2023)(L)
$5,000 $5,000 $5,000 
Galaxy Technologies, Inc. – Term Debt (L+6.0%, 10.0% Cash, Due 8/2023)(L)
8,000 8,000 8,000 
$13,000 $13,000 
12

Table of Contents
GLADSTONE INVESTMENT CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS
MARCH 31, 2021
(DOLLAR AMOUNTS IN THOUSANDS)
Company and Investment(A)(B)(D)(E)
Principal/Shares/
Units(F)(J)
CostFair Value
Preferred Equity – 3.8%
Aerospace and Defense – 3.8%
Galaxy Technologies, Inc. – Preferred Stock(C)(L)
5,517,444 $11,464 $14,630 
Common Equity – 0.0%
Aerospace and Defense – 0.0%
Galaxy Technologies, Inc. – Common Stock(C)(L)
88,843 $48 $ 
Total Control Investments$24,512 $27,630 
TOTAL INVESTMENTS – 166.0%$663,563 $633,829 
(A)Certain of the securities listed are issued by affiliate(s) of the indicated portfolio company. The majority of the securities listed, totaling $524.0 million at fair value, are pledged as collateral to our revolving line of credit, as described further in Note 5 — Borrowings in the accompanying Notes to Consolidated Financial Statements. Additionally, under Section 55 of the 1940 Act, we may not acquire any non-qualifying assets unless, at the time such acquisition is made, qualifying assets represent at least 70% of our total assets. As of March 31, 2021, our investment in Funko was considered a non-qualifying asset under Section 55 of the 1940 Act and represented less than 0.1% of total investments, at fair value.
(B)Unless indicated otherwise, all cash interest rates are indexed to 30-day LIBOR, which was 0.1% as of March 31, 2021. If applicable, paid-in-kind interest rates are noted separately from the cash interest rate. Certain securities are subject to an interest rate floor. The cash interest rate is the greater of the floor or 30-day LIBOR plus a spread. Due dates represent the contractual maturity date.
(C)Security is non-income producing.
(D)Category percentages represent the fair value of each category and subcategory as a percentage of net assets as of March 31, 2021.
(E)Unless indicated otherwise, all of our investments are valued using Level 3 inputs within the ASC 820 fair value hierarchy. Refer to Note 3 — Investments in the accompanying Notes to Consolidated Financial Statements for additional information.
(F)Where applicable, aggregates all shares of a class of stock owned without regard to specific series owned within such class (some series of which may or may not be voting shares) or aggregates all warrants to purchase shares of a class of stock owned without regard to specific series of such class of stock such warrants allow us to purchase.
(G)Debt security is on non-accrual status.
(H)$5.1 million of the debt security was participated to a third-party, but is accounted for as collateral for a secured borrowing under accounting principles generally accepted in the U.S. and presented as Secured borrowing on our accompanying Consolidated Statements of Assets and Liabilities as of March 31, 2021.
(I)Debt security has a fixed interest rate.
(J)Represents the principal balance for debt investments and the number of shares/units held for equity investments. Warrants are represented as a percentage of ownership, as applicable.
(K)Fair value was based on internal yield analysis or on estimates of value submitted by ICE Data Pricing and Reference Data, LLC. Refer to Note 3 — Investments in the accompanying Notes to Consolidated Financial Statements for additional information.
(L)Fair value was based on the total enterprise value of the portfolio company, which is generally allocated to the portfolio company’s securities in order of their relative priority in the capital structure. Refer to Note 3 — Investments in the accompanying Notes to Consolidated Financial Statements for additional information.
(M)One of our affiliated funds, Gladstone Capital Corporation, co-invested with us in this portfolio company pursuant to an exemptive order granted by the U.S. Securities and Exchange Commission.
(N)Non-Control/Non-Affiliate investments, as defined by the 1940 Act, are those that are neither Control nor Affiliate investments and in which we own less than 5.0% of the issued and outstanding voting securities.
(O)Affiliate investments, as defined by the 1940 Act, are those that are not Control investments and in which we own, with the power to vote, between and inclusive of 5.0% and 25.0% of the issued and outstanding voting securities.
(P)Control investments, as defined by the 1940 Act, are those where we have the power to exercise a controlling influence over the management or policies of the portfolio company, which may include owning, with the power to vote, more than 25.0% of the issued and outstanding voting securities.
(Q)Fair value was based on the expected exit or payoff amount, where such event has occurred or is expected to occur imminently.
(R)Debt security does not have a stated current interest rate.
(S)Our investment in Funko was valued using Level 2 inputs within the ASC 820 fair value hierarchy. Our common units in Funko are convertible into class A common stock in Funko, Inc. upon meeting certain requirements. Fair value was based on the closing market price of shares of Funko, Inc. as of the reporting date, less a discount for lack of marketability. Funko, Inc. is traded on the Nasdaq Global Select Market under the trading symbol “FNKO.” Refer to Note 3 — Investments in the accompanying Notes to Consolidated Financial Statements for additional information.
(T)Refer to Note 10 — Commitments and Contingencies in the accompanying Notes to Consolidated Financial Statements for additional information regarding this guaranty.
(U)Reserved.
(V)Cumulative gross unrealized depreciation for federal income tax purposes is $109.0 million; cumulative gross unrealized appreciation for federal income tax purposes is $78.5 million. Cumulative net unrealized depreciation is $30.5 million, based on a tax cost of $664.3 million.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.
13

Table of Contents
GLADSTONE INVESTMENT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2021
(DOLLAR AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA AND AS OTHERWISE INDICATED)
(UNAUDITED)
NOTE 1. ORGANIZATION
Gladstone Investment Corporation (“Gladstone Investment”) was incorporated under the General Corporation Law of the State of Delaware on February 18, 2005, and completed an initial public offering on June 22, 2005. The terms “the Company,” “we,” “our” and “us” all refer to Gladstone Investment and its consolidated subsidiaries. We are an externally advised, closed-end, non-diversified management investment company that has elected to be treated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”), and are applying the guidance of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, “Financial Services-Investment Companies” (“ASC 946”). In addition, we have elected to be treated for U.S. federal income tax purposes as a regulated investment company (“RIC”) under the Internal Revenue Code of 1986, as amended (the “Code”). We were established for the purpose of investing in debt and equity securities of established private businesses in the United States (“U.S.”). Debt investments primarily take the form of two types of loans: secured first lien loans and secured second lien loans. Equity investments primarily take the form of preferred or common equity (or warrants or options to acquire the foregoing), often in connection with buyouts and other recapitalizations. Our investment objectives are to: (i) achieve and grow current income by investing in debt securities of established businesses that we believe will provide stable earnings and cash flow to pay expenses, make principal and interest payments on our outstanding indebtedness and make distributions to stockholders that grow over time, and (ii) provide our stockholders with long-term capital appreciation in the value of our assets by investing in equity securities of established businesses, generally in combination with the aforementioned debt securities, that we believe can grow over time to permit us to sell our equity investments for capital gains. We intend that our investment portfolio over time will consist of approximately 75.0% in debt investments and 25.0% in equity investments, at cost. As of December 31, 2021, our investment portfolio was comprised of 76.8% in debt securities and 23.2% in equity securities, at cost.
Gladstone Business Investment, LLC (“Business Investment”), a wholly-owned subsidiary of ours, was established on August 11, 2006 for the sole purpose of holding certain investments pledged as collateral under our line of credit. The financial statements of Business Investment are consolidated with those of Gladstone Investment. Refer to Note 12 — Unconsolidated Significant Subsidiaries for additional information regarding our unconsolidated significant subsidiaries.
We are externally managed by Gladstone Management Corporation (the “Adviser”), an affiliate of ours and a U.S. Securities and Exchange Commission (“SEC”) registered investment adviser, pursuant to an investment advisory and management agreement (the “Advisory Agreement”). Administrative services are provided by Gladstone Administration, LLC (the “Administrator”), an affiliate of ours and the Adviser, pursuant to an administration agreement (the “Administration Agreement”). Refer to Note 4 — Related Party Transactions for more information regarding these arrangements.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Unaudited Interim Financial Statements and Basis of Presentation
We prepare our interim financial statements in accordance with accounting principles generally accepted in the U.S. (“GAAP”) for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Articles 6, 10 and 12 of SEC Regulation S-X. Accordingly, we have not included in this quarterly report all of the information and notes required by GAAP for annual financial statements. The accompanying Consolidated Financial Statements include our accounts and those of our wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated. In accordance with Article 6 of Regulation S-X, we do not consolidate portfolio company investments. Under the investment company rules and regulations pursuant to the American Institute of Certified Public Accountants (“AICPA”) Audit and Accounting Guide for Investment Companies, codified in ASC 946, we are precluded from consolidating any entity other than another investment company, except that ASC 946 provides for the consolidation of a controlled operating company that provides substantially all of its services to the investment company or its consolidated subsidiaries. In our opinion, all adjustments, consisting solely of normal recurring accruals, necessary for the fair statement of financial statements for the interim periods have been included. The results of operations for the three and nine months ended December 31, 2021 are not necessarily indicative of results that ultimately may be achieved for the fiscal year
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ending March 31, 2022 or any future interim period. The interim financial statements and notes thereto should be read in conjunction with the financial statements and notes thereto included in our annual report on Form 10-K for the fiscal year ended March 31, 2021, as filed with the SEC on May 11, 2021.
Use of Estimates
Preparing financial statements requires management to make estimates and assumptions that affect the amounts reported in our accompanying Consolidated Financial Statements and these Notes to Consolidated Financial Statements. Actual results may differ from those estimates.
Reclassifications
Certain prior period amounts have been reclassified to conform to the current period presentation in the Consolidated Financial Statements and the accompanying Notes to Consolidated Financial Statements. Reclassifications did not impact net increase (decrease) in net assets resulting from operations, total assets, total liabilities or total net assets, or Consolidated Statements of Changes in Net Assets and Consolidated Statements of Cash Flows classifications.
Investment Valuation Policy
Accounting Recognition
We record our investments at fair value in accordance with the FASB ASC Topic 820, “Fair Value Measurements and Disclosures” (“ASC 820”) and the 1940 Act. Investment transactions are recorded on the trade date. Realized gains or losses are generally measured by the difference between the net proceeds from the repayment or sale and the cost basis of the investment, without regard to unrealized appreciation or depreciation previously recognized, and include investments charged off during the period, net of recoveries. Unrealized appreciation or depreciation primarily reflects the change in investment fair values, including the reversal of previously recorded unrealized appreciation or depreciation when gains or losses are realized.
Board Responsibility
In accordance with the 1940 Act, our board of directors (“Board of Directors”) has the ultimate responsibility for reviewing and determining, in good faith, the fair value of our investments for which market quotations are not readily available based on our investment valuation policy (which has been approved by our Board of Directors) (the “Policy”). Such review occurs in three phases. First, prior to its quarterly meetings, the Board of Directors receives written valuation recommendations and supporting materials provided by professionals of the Adviser and Administrator with oversight and direction from the chief valuation officer (the “Valuation Team”). Second, the Valuation Committee of our Board of Directors (comprised entirely of independent directors) meets to review the valuation recommendations and supporting materials, discusses the information provided by the Valuation Team, determines whether the Valuation Team has followed the Policy, determines whether the Valuation Team’s recommended fair value is reasonable in light of the Policy, and reviews other facts and circumstances. Third, after the Valuation Committee concludes its meeting, it and the chief valuation officer present the Valuation Committee’s findings to the entire Board of Directors so that the full Board of Directors may review and determine in good faith the fair value of such investments in accordance with the Policy.
There is no single standard for determining fair value (especially for privately-held businesses), as fair value depends upon the specific facts and circumstances of each individual investment. In determining the fair value of our investments, the Valuation Team, led by the chief valuation officer, uses the Policy, and each quarter the Valuation Committee and Board of Directors review the Policy to determine if changes thereto are advisable and whether the Valuation Team has applied the Policy consistently.
Use of Third-Party Valuation Firms
The Valuation Team engages third-party valuation firms to provide independent assessments of fair value of certain of our investments.
ICE Data Pricing and Reference Data, LLC (“ICE”), a valuation specialist, generally provides estimates of fair value on our debt investments. The Valuation Team generally assigns ICE’s estimates of fair value to our debt investments where we do not have the ability to effectuate a sale of the applicable portfolio company. The Valuation Team corroborates ICE’s
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estimates of fair value using one or more of the valuation techniques discussed below. The Valuation Team’s estimate of value on a specific debt investment may significantly differ from ICE’s. When this occurs, our Valuation Committee and Board of Directors review whether the Valuation Team has followed the Policy and whether the Valuation Team’s recommended fair value is reasonable in light of the Policy and other facts and circumstances before determining fair value.
We may engage other independent valuation firms to provide earnings multiple ranges, as well as other information, and evaluate such information for incorporation into the total enterprise value (“TEV”) of certain of our investments. Generally, at least once per year, we engage an independent valuation firm to value or review the valuation of each of our significant equity investments, which includes providing the information noted above. The Valuation Team evaluates such information for incorporation into our TEV, including review of all inputs provided by the independent valuation firm. The Valuation Team then makes a recommendation to our Valuation Committee and Board of Directors as to the fair value. Our Board of Directors reviews the recommended fair value and whether it is reasonable in light of the Policy and other relevant facts and circumstances before determining fair value.
Valuation Techniques
In accordance with ASC 820, the Valuation Team uses the following techniques when valuing our investment portfolio:
Total Enterprise Value — In determining the fair value using a TEV, the Valuation Team first calculates the TEV of the portfolio company by incorporating some or all of the following factors: the portfolio company’s ability to make payments and other specific portfolio company attributes; the earnings of the portfolio company (the trailing or projected twelve month revenue or earnings before interest, taxes, depreciation and amortization (“EBITDA”)); EBITDA multiples obtained from our indexing methodology whereby the original transaction EBITDA multiple at the time of our closing is indexed to a general subset of comparable disclosed transactions and EBITDA multiples from recent sales to third parties of similar securities in similar industries; a comparison to publicly traded securities in similar industries; and other pertinent factors. The Valuation Team generally reviews industry statistics and may use outside experts when gathering this information. Once the TEV is determined for a portfolio company, the Valuation Team generally allocates the TEV to the portfolio company’s securities based on the facts and circumstances of the securities, which typically results in the allocation of fair value to securities based on the order of their relative priority in the capital structure. Generally, the Valuation Team uses TEV to value our equity investments and, in the circumstances where we have the ability to effectuate a sale of a portfolio company, our debt investments.
TEV is primarily calculated using EBITDA and EBITDA multiples; however, TEV may also be calculated using revenue and revenue multiples or a discounted cash flow (“DCF”) analysis whereby future expected cash flows of the portfolio company are discounted to determine a net present value using estimated risk-adjusted discount rates, which incorporate adjustments for nonperformance and liquidity risks. Generally, the Valuation Team uses a DCF analysis to calculate TEV to corroborate estimates of value for our equity investments where we do not have the ability to effectuate a sale of a portfolio company or for debt of credit-impaired portfolio companies.
Yield Analysis — The Valuation Team generally determines the fair value of our debt investments for which we do not have the ability to effectuate a sale of the applicable portfolio company using the yield analysis, which includes a DCF calculation and assumptions that the Valuation Team believes market participants would use, including: estimated remaining life, current market yield, current leverage, and interest rate spreads. This technique develops a modified discount rate that incorporates risk premiums including, among other things, increased probability of default, increased loss upon default, and increased liquidity risk. Generally, the Valuation Team uses the yield analysis to corroborate both estimates of value provided by ICE and market quotes.
Market Quotes — For our investments for which a limited market exists, we generally base fair value on readily available and reliable market quotations, which are corroborated by the Valuation Team (generally by using the yield analysis described above). In addition, the Valuation Team assesses trading activity for similar investments and evaluates variances in quotations and other market insights to determine if any available quoted prices are reliable. Typically, the Valuation Team uses the lower indicative bid price in the bid-to-ask price range obtained from the respective originating syndication agent’s trading desk on or near the valuation date. The Valuation Team may take further steps to consider additional information to validate that price in accordance with the Policy. For securities that are publicly traded, we generally base fair value on the closing market price of the securities we hold as of the reporting date. For restricted securities that are publicly traded, we generally base fair
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value on the closing market price of the securities we hold as of the reporting date less a discount for the restriction, which includes consideration of the nature and term to expiration of the restriction.
Investments in Funds — For equity investments in other funds for which we cannot effectuate a sale of the fund, the Valuation Team generally determines the fair value of our invested capital at the net asset value (“NAV”) provided by the fund. Any invested capital that is not yet reflected in the NAV provided by the fund is valued at par value. The Valuation Team may also determine fair value of our investments in other investment funds based on the capital accounts of the underlying entity.
In addition to the valuation techniques listed above, the Valuation Team may also consider other factors when determining the fair value of our investments, including: the nature and realizable value of the collateral, including external parties’ guaranties, any relevant offers or letters of intent to acquire the portfolio company, timing of expected loan repayments, and the markets in which the portfolio company operates.
Fair value measurements of our investments may involve subjective judgments and estimates and, due to the uncertainty inherent in valuing these securities, the determinations of fair value may fluctuate from period to period and may differ materially from the values that could be obtained if a ready market for these securities existed. Our NAV could be materially affected if the determinations regarding the fair value of our investments are materially different from the values that we ultimately realize upon our disposal of such securities. Additionally, changes in the market environment and other events that may occur over the life of the investment may cause the gains or losses ultimately realized on these investments to be different than the valuations currently assigned. Further, such investments are generally subject to legal and other restrictions on resale or otherwise are less liquid than publicly traded securities. If we were required to liquidate a portfolio investment in a forced or liquidation sale, we could realize significantly less than the value at which it is recorded.
Refer to Note 3 Investments for additional information regarding fair value measurements and our application of ASC 820.
Revenue Recognition
Interest Income Recognition
Interest income, adjusted for amortization of premiums, amendment fees and acquisition costs and the accretion of discounts, is recorded on the accrual basis to the extent that such amounts are expected to be collected. Generally, when a loan becomes 90 days or more past due, or if our qualitative assessment indicates that the debtor is unable to service its debt or other obligations, we will place the loan on non-accrual status and cease recognizing interest income on that loan until the borrower has demonstrated the ability and intent to pay contractual amounts due. However, we remain contractually entitled to this interest. Interest payments received on non-accrual loans may be recognized as income or applied to the cost basis, depending upon management’s judgment. Generally, non-accrual loans are restored to accrual status when past-due principal and interest are paid and, in management’s judgment, are likely to remain current, or, due to a restructuring, the interest income is deemed to be collectible. As of December 31, 2021, our loans to J.R. Hobbs Co. – Atlanta, LLC (“J.R. Hobbs”), The Mountain Corporation (“The Mountain”), and SBS Industries Holdings, Inc. were on non-accrual status, with an aggregate debt cost basis of $81.3 million, or 15.7% of the cost basis of all debt investments in our portfolio, and an aggregate fair value of $64.9 million, or 12.9% of the fair value of all debt investments in our portfolio. As of March 31, 2021, our loans to B+T Group Acquisition, Inc., Horizon Facilities Services, Inc., and The Mountain were on non-accrual status, with an aggregate debt cost basis of $61.1 million, or 12.4% of the cost basis of all debt investments in our portfolio, and an aggregate fair value of $48.8 million, or 10.3% of the fair value of all debt investments in our portfolio.
Paid-in-kind (“PIK”) interest, computed at the contractual rate specified in the loan agreement, is added to the principal balance of the loan and recorded as interest income. As of December 31, 2021 and March 31, 2021, we did not have any loans with a PIK interest component.
Success Fee Income Recognition
We record success fees as income when earned, which often occurs upon receipt of cash. Success fees are generally contractually due upon a change of control in a portfolio company, typically resulting from an exit or sale, and are non-recurring.
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Dividend Income Recognition
We accrue dividend income on preferred and common equity securities to the extent that such amounts are expected to be collected and if we have the option to collect such amounts in cash or other consideration.
Related Party Fees
We are party to the Advisory Agreement with the Adviser, which is owned and controlled by our chairman and chief executive officer. In accordance with the Advisory Agreement, we pay the Adviser fees as compensation for its services, consisting of a base management fee and an incentive fee. Additionally, we pay the Adviser a loan servicing fee as compensation for its services as servicer under the terms of the Fifth Amended and Restated Credit Agreement dated April 30, 2013, as amended from time to time.
We are also party to the Administration Agreement with the Administrator, which is owned and controlled by our chairman and chief executive officer, whereby we pay separately for administrative services.
Refer to Note 4 Related Party Transactions for additional information regarding these related party fees and agreements.
Recent Accounting Pronouncements
In August 2021, the FASB issued Accounting Standards Update 2021-06, “Presentation of Financial Statements (Topic 205): Financial Services – Depository and Lending (Topic 924), and Financial Services – Investment Companies (Topic 946)” (“ASU 2021-06”), which modifies the disclosure requirements for acquired and disposed businesses. ASU 2021-06 was effective upon issuance. Our adoption of ASU 2021-06 did not have a material impact on our financial position, results of operations or cash flows.
NOTE 3. INVESTMENTS
Fair Value
In accordance with ASC 820, we determine the fair value of our investments to be the price that would be received for an investment in a current sale, which assumes an orderly transaction between willing market participants on the measurement date. This fair value definition focuses on exit price in the principal, or most advantageous, market and prioritizes, within a measurement of fair value, the use of market-based inputs over entity-specific inputs. ASC 820 also establishes the following three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of a financial instrument as of the measurement date.
Level 1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical financial instruments in active markets;
Level 2 — inputs to the valuation methodology include quoted prices for similar financial instruments in active or inactive markets, and inputs that are observable for the financial instrument, either directly or indirectly, for substantially the full term of the financial instrument. Level 2 inputs are those in markets for which there are few transactions, the prices are not current, little public information exists, or instances where prices vary substantially over time or among brokered market makers; and
Level 3 — inputs to the valuation methodology are unobservable and significant to the fair value measurement. Unobservable inputs are those inputs that reflect assumptions that market participants would use when pricing the financial instrument and can include the Valuation Team’s assumptions based upon the best available information.
When a determination is made to classify our investments within Level 3 of the valuation hierarchy, such determination is based upon the significance of the unobservable factors to the overall fair value measurement. However, Level 3 financial instruments typically include, in addition to the unobservable, or Level 3, inputs, observable inputs (or components that are actively quoted and can be validated to external sources). The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement.
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As of December 31, 2021 and March 31, 2021, all of our investments were valued using Level 3 inputs within the ASC 820 fair value hierarchy, except for our investment in Funko Acquisition Holdings, LLC (“Funko”), which was valued using Level 2 inputs.
We transfer investments in and out of Level 1, 2 and 3 of the valuation hierarchy as of the beginning balance sheet date, based on changes in the use of observable and unobservable inputs utilized to perform the valuation for the period. There were no transfers in or out of Level 1, 2 and 3 during the nine months ended December 31, 2021 and 2020, respectively.
As of December 31, 2021 and March 31, 2021, our investments, by security type, at fair value were categorized as follows within the ASC 820 fair value hierarchy:
Fair Value Measurements
Fair Value
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
Significant
Other
Observable Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
As of December 31, 2021:
Secured first lien debt
$433,834 $— $— $433,834 
Secured second lien debt
68,294 — — 68,294 
Preferred equity
196,104 — — 

196,104 
Common equity/equivalents
2,506 — 

80 
(A)
2,426 
Total Investments as of December 31, 2021
$700,738 $ $80 $700,658 
Fair Value Measurements
Fair Value
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
As of March 31, 2021:
Secured first lien debt
$368,688 $— $— $368,688 
Secured second lien debt
102,897 — — 102,897 
Preferred equity
159,478 — — 159,478 
Common equity/equivalents
2,766 — 95 
(A)
2,671 
Total Investments as of March 31, 2021
$633,829 $— $95 $633,734 
(A)Fair value was determined based on the closing market price of shares of Funko, Inc. (our units in Funko can be converted into common shares of Funko, Inc.) at the reporting date less a discount for lack of marketability, as our investment was subject to certain restrictions.
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The following table presents our investments, valued using Level 3 inputs within the ASC 820 fair value hierarchy, and carried at fair value as of December 31, 2021 and March 31, 2021, by caption on our accompanying Consolidated Statements of Assets and Liabilities, and by security type:
Total Recurring Fair Value Measurements
Reported in Consolidated Statements
of Assets and Liabilities
Valued Using Level 3 Inputs
December 31, 2021March 31, 2021
Non-Control/Non-Affiliate Investments
Secured first lien debt$233,289 $187,587 
Secured second lien debt66,525 41,926 
Preferred equity123,470 65,943 
Common equity/equivalents(A)
1,554 2,671 
Total Non-Control/Non-Affiliate Investments424,838 298,127 
Affiliate Investments
Secured first lien debt200,545 181,101 
Secured second lien debt1,769 47,971 
Preferred equity72,634 78,905 
Common equity/equivalents872 — 
Total Affiliate Investments275,820 307,977 
Control Investments
Secured first lien debt — 
Secured second lien debt 13,000 
Preferred equity 14,630 
Common equity/equivalents — 
Total Control Investments 27,630 
Total investments at fair value using Level 3 inputs$700,658 $633,734 
(A)Excludes our investment in Funko with a fair value of $80 and $95 as of December 31, 2021 and March 31, 2021, respectively, which was valued using Level 2 inputs.
In accordance with ASC 820, the following table provides quantitative information about our investments valued using Level 3 fair value measurements as of December 31, 2021 and March 31, 2021. The table below is not intended to be all-inclusive, but rather provides information on the significant Level 3 inputs as they relate to our fair value measurements. The weighted-average calculations in the table below are based on the principal balances for all debt-related calculations and on the cost basis for all equity-related calculations for the particular input.
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Quantitative Information about Level 3 Fair Value Measurements
Fair Value as ofValuation
Technique/
Methodology
Unobservable
Input
Range / Weighted-Average as of
December 31,
2021
March 31,
2021
December 31,
2021
March 31,
2021
Secured first
lien debt
$371,809 $303,330 
(A)
TEVEBITDA multiple
3.4x – 8.4x /
7.0x
4.6x – 8.0x /
7.0x
EBITDA
$3,990 –$13,488 /
$7,583
$1,403 – $9,500 /
$5,746
Revenue multiple
0.7x – 0.7x /
0.7x
0.6x – 0.7x /
0.6x
Revenue
$14,716 – $14,716 /
$14,716
$14,474 – $30,537 /
$26,110
62,025 65,358 Yield AnalysisDiscount Rate
10.6% – 15.4% / 13.9%
13.3% – 17.9% /
14.7%
Secured second
lien debt
40,364 53,122 
(B)
TEVEBITDA multiple
5.8x – 7.0x /
 6.2x
5.9x – 6.6x /
6.2x
EBITDA
$3,953 – $5,637 /
$5,056
$4,551 – $5,100 /
$4,772
Revenue multiple
0.7x – 0.7x /
0.7x
0.7x – 0.7x /
0.7x
Revenue
$14,716 – $14,716 /
$14,716
$14,474 – $14,474 /
$14,474
27,930 49,775 Yield AnalysisDiscount Rate
10.1% – 12.1% /
11.0%
8.1% – 13.5% /
11.2%
Preferred
equity
196,104 159,478 
(C)
TEVEBITDA multiple
3.4x – 8.4x /
6.9x
5.6x – 8.0x /
6.6x
EBITDA
$1,632 – $13,488 /
$6,543
$2,587– $9,720 /
$5,938
Revenue multiple
0.7x – 0.7x /
0.7x
0.6x – 0.7x /
0.6x
Revenue
$14,716 – $14,716 /
$14,716
$14,474 – $30,537 /
$25,465
Common equity/
equivalents(E)
2,426 2,671 
(D)
TEVEBITDA multiple
4.9x – 8.6x /
6.0x
4.6x – 7.1x /
5.7x
EBITDA
$559 – $13,488 /
$5,491
$1,403 – $7,135 /
$4,132
Revenue multiple
0.7x – 0.7x /
0.7x
0.7x – 0.7x /
0.7x
Revenue
$14,716 – $14,716 /
$14,716
$14,474 – $14,474 /
$14,474
Total$700,658 $633,734 
(A)Fair value as of March 31, 2021 includes one proprietary debt investment with a fair value of $23.2 million, which was valued at the expected payoff amount as the unobservable input.
(B)Fair value as of March 31, 2021 includes one proprietary debt investment with a fair value of $13.0 million, which was valued at the expected payoff amount as the unobservable input.
(C)Fair value as of March 31, 2021 includes one proprietary equity investment with a fair value of $32.1 million, which was valued at the expected exit amount as the unobservable input.
(D)Fair value as of March 31, 2021 includes one proprietary equity investment with a fair value of $2.2 million, which was valued at the expected exit amount as the unobservable input.
(E)Fair value as of both December 31, 2021 and March 31, 2021 excludes our investment in Funko with a fair value of $80 and $95, respectively, which was valued using Level 2 inputs.
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Fair value measurements can be sensitive to changes in one or more of the valuation inputs. Changes in discount rates, EBITDA or EBITDA multiples (or revenue or revenue multiples), each in isolation, may change the fair value of certain of our investments. Generally, an increase/(decrease) in discount rates or a (decrease)/increase in EBITDA or EBITDA multiples (or revenue or revenue multiples) may result in a (decrease)/increase in the fair value of certain of our investments.
Changes in Level 3 Fair Value Measurements of Investments
The following tables provide our portfolio’s changes in fair value, broken out by security type, during the three and nine months ended December 31, 2021 and 2020 for all investments for which the Adviser determines fair value using unobservable (Level 3) inputs.
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)

Secured
First Lien
Debt
Secured
Second Lien
Debt
Preferred
Equity
Common
Equity/
Equivalents
Total
Three Months ended December 31, 2021:
Fair value as of September 30, 2021$431,413 $68,489 $228,931 $7,592 $736,425 
Total gain (loss):
Net realized gain (loss)(A)
— — 21,939