Gladstone Investment Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

RELATED PARTY TRANSACTIONS (Tables)

RELATED PARTY TRANSACTIONS (Tables)

12 Months Ended

Mar. 31, 2023

The following table summarizes the base management fees, loan servicing fees, incentive fees, and associated non-contractual, unconditional, and irrevocable credits reflected in our accompanying Consolidated Statements of Operations:


	Year Ended March 31,
	2023			2022			2021
Average total assets subject to base management fee(A)	$	739,900		$	705,650		$	605,750
Multiplied by annual base management fee of 2.0%	2.0		%	2.0		%	2.0		%
Base management fee(B)	14,798			14,113			12,115
Credits to fees from Adviser - other(B)	(3,811)			(6,497)			(2,949)
Net base management fee	$	10,987		$	7,616		$	9,166

Loan servicing fee(B)	$	7,880		$	7,178		$	7,082
Credits to base management fee - loan servicing fee(B)	(7,880)			(7,178)			(7,082)
Net loan servicing fee	$	—		$	—		$	—

Incentive fee – income-based	$	9,176		$	8,074		$	3,746
Incentive fee – capital gains-based(C)	(296)			18,286			5,032
Total incentive fee(B)	8,880			26,360			8,778
Credits to fees from Adviser - other(B)	—			—			—
Net total incentive fee	$	8,880		$	26,360		$	8,778

(A)Average total assets subject to the base management fee is defined in the Advisory Agreement as total assets, including investments made with proceeds of borrowings, less any uninvested cash or cash equivalents resulting from borrowings, valued at the end of the applicable quarters within the respective periods and adjusted appropriately for any share issuances or repurchases during the periods.

(B)Reflected as a line item on our accompanying Consolidated Statements of Operations.

(C)The capital gains-based incentive fees are recorded in accordance with GAAP and do not necessarily reflect amounts contractually due under the terms of the Advisory Agreement.

Amounts due to related parties on our accompanying Consolidated Statements of Assets and Liabilities were as follows:


	As of March 31,
	2023		2022
Base management and loan servicing fee due to Adviser, net of credits	$	1,574	$	1,648
Incentive fee due to Adviser(A)	27,259		27,577
Other due to Adviser	86		63
Total fees due to Adviser	$	28,919	$	29,288
Fee due to Administrator	716		627
Total related party fees due	$	29,635	$	29,915

(A)Includes a capital gains-based incentive fee of $25.1 million and $25.4 million as of March 31, 2023 and 2022, respectively, recorded in accordance with GAAP requirements and which was not contractually due under the terms of the Advisory Agreement. Refer to Note 4 — Related Party Transactions—Transactions with the Adviser—Incentive Fee for additional information, including capital gains-based incentive fee payments made.