Q4 2025 Gladstone Investment Corp Earnings Call

Greetings and welcome to Gladstone Investment Corporation fourth quarter and year end earnings Conference call.

At this time all participants are in a listen only mode.

Speaker Change: Question and answer session will follow the formal presentation. If anyone requires operator assistance during the conference. Please press star zero on your telephone keypad. As a reminder, this conference is being recorded it is now my pleasure to introduce your host David Gladstone Chief Executive Officer. Thank you. Please go ahead.

Speaker Change: Well, thank you Donna and good morning, everybody out there who is listening to this is David Gladstone Chairman of Gladstone investment and this is the earnings conference call for the fourth quarter and fiscal year end March 31, 2025, our shareholders and analyst I'm glad stone investment listed on NASDAQ under.

Speaker Change: Trading symbol G. A a yes or a capital gains for us.

Speaker Change: Our common stock and then we have some preferred stock.

Speaker Change: A I N N N G a I N Z.

Speaker Change: L E N G. A I N I M. They usually before I just didn't know second half.

Speaker Change: And thank you all for calling in always happy to provide updates to our shareholders and the analysts and provide our views on the current business environment. Two goals for this call is to help you understand what happened and also give you some current views.

Mutual be like.

Speaker Change: Now we hear from our General Counsel and Secretary, Michael The Cal State Bank, Yes.

Speaker Change: Yes, that's what I was speaking of the future. Today's call May include forward looking statements under the Securities Act of 1933, and the Securities Exchange Act of 1934.

Speaker Change: Putting those regarding our future performance. These forward looking statements involve certain risks and uncertainties, although there based on our current plans, which we believe to be reasonable and many factors may cause our actual results to be materially different from any future results exploit expressed or implied by these forward looking statements, including all the risk factors that we have in our.

Speaker Change: 10-Q, 10-K, and other documents filed with the SEC.

Speaker Change: None of them on the investors page of our website, that's Gladstone investment dot com or you can even find them on the Sec's website, which is S exceed that G O V.

Speaker Change: We undertake no obligation to publicly update or revise any of these forward looking statements whether as a result of new information future events or otherwise except as required by law. Please also note that any past performance is never a guarantee of future results.

Speaker Change: We ask that you visit our website once again Gladstone investment dotcom sign up for email notification service, while you're there could also find us on Twitter keyword, there is gladstone comps and on Facebook the keyword the Gladstone companies and today's call is an overview of our annual results through March 31.

Speaker Change: 2025, So please review our press release and Form 10-K for more detailed information with that I'll turn it over to Dave doll him. He is the president of Gladstone investment, Dave Hey, Mike Thanks, very much and good morning to everyone.

Dave Dolhem: We are again pleased to report that gain did produce very positive results for the fourth quarter and the fiscal year ended March 31, 'twenty 'twenty five.

Dave Dolhem: For the fiscal year, we generated adjusted NII of 97 cents per share.

Dave Dolhem: Which is earning our 96 cents per share annual dividend. We also increased the total fair value of our portfolio of $3 31, $25 million to $979 million, which is up from roughly 921 million at prior year end, though slightly lower than the $1 1 billion.

Dave Dolhem: And at the end that we reported at the end of last quarter.

Dave Dolhem: Slight decrease quarter over quarter and as such actually really resulted from a couple of positive things. One we had an increase in assets from new buyouts that we made.

Dave Dolhem: But then we reduced that by the successful exit of one of our existing portfolio of companies, which actually reduced our while reducing the assets also generated significant realized capital gains of $19.8 million. He also of course had some movement in the net valuation of our portfolio certain a year.

Dave Dolhem: A year and quarter over quarter, a number of which were a function of some increases in in the multiple and slight decreases in EBITDA, but all of those movements were certainly all positive and in some regard during the year, we did add experienced talent to our investing team.

Dave Dolhem: <unk>, which is in support of our continued portfolio growth and being able to help manage our current portfolio of 25 operating companies.

Dave Dolhem: For the year, we invested a total of 221 million, which is up from 184 million in the prior year. This included investments in four new portfolio companies. Some add on investments and we also completed a dividend recap, which is a positive thing of one of our portfolio companies educators resource, which.

Dave Dolhem: <unk>, both dividend income and provided for an additional interest bearing investment in that company.

Dave Dolhem: So throughout the year, we maintained our monthly distributions to shareholders of eight cents per share, which is a 96 cents per share I mentioned, we paid a supplemental distribution of 70 cents per share.

Dave Dolhem: And then another $1 66, excuse me, which aggregated to $1 66 per share for the year further in April subsequent to the yearend we declared an additional 54 cents per share supplemental distribution now.

Dave Dolhem: Now these supplemental distributions I've said before and those are we've made previously are a direct result of our buyout strategy and the goal of rewarding our shareholders with meaningful supplemental distributions from the realized capital gains which are generated on the equity portion of our exits while it was still maintain and try to grow our monthly distributions from.

Dave Dolhem: Operating income just to recap since inception in 2005 and through 331 25, we have invested in 62 buyout portfolio companies for an aggregate of approximately $2 billion exited 33 of these companies. This resulted in total investments, which are currently valued as I've mentioned at 979 million.

Dave Dolhem: While generating approximately 353 million and net realized gains and another 45 million of other income on exit.

Dave Dolhem: Turning to the outlook, which is obviously important these days from our perspective, there continues to be good liquidity in the M&A market. It is a very competitive environment, though we have now added variables of course regarding terrorists, which are impacting the analysis, which we have to do when we evaluate a new opportunity.

Dave Dolhem: <unk>, we are all competing effectively for new acquisitions that we believe do fit our buyout model, while we're being careful in assessing that risk and forecasting the tariff impact on costs customer demand and supply chain dynamics. Obviously this is not easy.

Dave Dolhem: But you know we have to take a hard look at these actual aspects of evaluating a new deal now not every business is affected in the same manner and that of course creates both opportunity and adds to the uncertainty with that said, though we are very far along and expect to close two new acquisitions shortly.

If not by the end of this quarter. We also are in various stages of review and diligence on a number of new opportunities and I am cautiously optimistic for our new buyout activity during the year.

Dave Dolhem: Looking at our existing portfolio, we do have a few companies that are consumer focus.

Dave Dolhem: While they've had very good results to date, we are cautious due to the tariff costs on the ultimate consumer prices that may have to be passed through and therefore, the demand and the margin impact on those companies. We are working with all of our companies and evaluating supply chain alternatives and various production strategy. So that we can NAV.

Dave Dolhem: Again, the current environment their.

Dave Dolhem: The recently announced pause or a few days ago on terrorists does bring a bit of relief, although we have to see what the permanent solution will be so.

Dave Dolhem: Again, we will continue to be cautious, but we believe we have a fairly good handle as it impacts our existing portfolio of companies.

Dave Dolhem: So in summing up the quarter and the fiscal year and looking forward our current portfolio with dealers in good shape, we have a strong liquid balance sheet a good level of buyout activity and then with the prospect of continued good earnings and distributions over the next year, albeit having to navigate the challenges we face due to the.

Speaker Change: Uncertain economic landscape, so I'll turn it over now to our CFO Taylor Ritchie to go into more detail on the actual results Taylor.

Taylor Ritchie: Thank you, Dave and good morning.

Taylor Ritchie: Looking at our operating performance, we had a strong finish to the fiscal year generating total investment income of $93 7 million up from $87 3 million in the prior year. This increase was primarily the result of a $4 5 million dollar increase in dividend and success in the income following the successful exit of two portfolio.

Taylor Ritchie: Well as a $1 8 million increase in interest income.

Taylor Ritchie: The sorry, the increase in interest income was primarily due to the increased weighted average principal balance of our interest bearing portfolio, partially offset by a decrease in the weighted average yield.

Taylor Ritchie: Additionally, we ended the year with adjusted net investment income of $35 5 million or 97 cents per share up slightly from 34 $591 per share in the prior fiscal year.

Taylor Ritchie: Covering our annual regular distributions of 96 cents per share.

Taylor Ritchie: Focusing on the fourth quarter results, we generated total investment income of $27 5 million up from $21 4 million in the prior quarter, primarily due to an increase in dividend and success fee income as a result of the exit of our investment in lockdown and our recapitalization of educators resource as well as an increase in interest income.

Taylor Ritchie: Net expenses for the quarter were $20 3 million up slightly from $20 2 million in the prior quarter. This increase was primarily due to an increase in interest expense and a decrease in credits to fees from advisor, which were driven by the significant new investment activity in the prior quarter.

Taylor Ritchie: Additionally base management fee expense income incentive fees and bad debt expense increased compared to the prior quarter.

Taylor Ritchie: These expense increases were partially offset by a decrease in capital gains based incentive fees, resulting from the net impact of realized and unrealized gains and losses during the quarter and accrued as required under U S. GAAP. This resulted in net investment income for the quarter of 729 compared to one point from the prior quarter.

Taylor Ritchie: Adjusted net investment income, which is net investment income or loss exclusive of any accrued capital gains based incentive fees for the quarter was $9 4 million or 26 cents per share up from $8 6 million or 23 cents per share in the protocol.

Taylor Ritchie: Turning to believe that adjusted net investment income is a useful and representative indicator of our homebuilding operations.

Taylor Ritchie: Consistent with our parks as of March 31st 2025, we continue to have four portfolio companies on nonaccrual status.

Taylor Ritchie: There are no portfolio wide credit concerns from the continue working closely with these companies and their management teams to get them back on accrual status or exit the investments are impossible. In particular, we continue to persevere through these companies as they are back to generating profit.

Taylor Ritchie: Excluding the $24 $3 million reversal of unrealized appreciation upon the exit of knockdown valuations in the aggregate were up $14 1 million across the portfolio. This unrealized depreciation was driven by higher valuation multiples across the portfolio and increased performance at a number of our portfolio of companies.

Taylor Ritchie: Which was partially offset by decreased performance in a few of our other portfolio companies.

Taylor Ritchie: Our NAV increased to $13 55 per share compared to $13.30 per share at the end of the prior quarter.

Taylor Ritchie: The increase was primarily the result of a 57% per share of net realized gains and 20 cents per share of investment income.

Taylor Ritchie: These increases were partially offset by 28 cents per share of net unrealized depreciation and 24 cents per share of distributions paid to common shareholders during the quarter.

Taylor Ritchie: We believe that maintaining liquidity and flexibility to support and grow our portfolio is key to our continued success during the year, we issued $126 nine a publicly traded notes and completed the upsize of our credit facility.

Taylor Ritchie: Although commitment of 279.

Taylor Ritchie: As of Yesterdays release, we had $214 million in availability on our line of credit.

Taylor Ritchie: Additionally, we raised approximately $10 million in net proceeds under our common stock ATM, while prices were accretive to NAV.

Taylor Ritchie: We believe that the recently issued notes the additional available capital from our line of credit and the ability to raise equity capital through our common stock ATM will allow us to drive portfolio growth as new buyout opportunities emerge aimed to weather any potential economic slowdowns as a result of tariffs or other economic uncertainties.

Taylor Ritchie: Overall, our leverage remains a strong position with an asset coverage ratio as of March 31, 25, or 204%, providing cushion to their price 100.

Taylor Ritchie: Coverage ratio.

Taylor Ritchie: Consistent with prior quarters, the surreal book earnings to shareholders remains strong we ended the fiscal year with $55 3 million or $1.50 per share and spillover sufficient to cover our current monthly distribution of eight cents per share for an annual run rate of 96 cents per share.

Taylor Ritchie: Recently declared 54 cents per share supplemental distribution to be paid in June we will look to continue funding future supplemental distributions as we recognize realized capital gains on the equity portion of our future exits using the monthly distribution run rate of 96 cents per share per year, and 70 cents per share on a couple of months.

Taylor Ritchie: <unk> paid in the fiscal year 2025, our aggregate estimate fiscal year distributions with you at about 11% using yesterday's closing price of $14 five.

Taylor Ritchie: This covers my part of today's call I'll now hand, it back over to you David to wrap us up alright.

David Gladstone: Nice you and Dave and Michael.

The information to the shareholders that's been delivering at this call and the 10-K filed with the U S. H C yesterday should bring everyone up to date.

David Gladstone: We can manage reported solid results for the quarter ending March 31st 2025, including new investment activity.

David Gladstone: Significant net realized gains generated during the year, we believe the team and is in a great position to continue these successes.

David Gladstone: Often asked myself I wonder if anyone knows that is a 54 cent dividend.

David Gladstone: The record date is June 4th and Uh Huh.

David Gladstone: <unk> date is June 13th and when you add that to watch.

David Gladstone: What's being paid as the monthly you can get a great return.

David Gladstone: I believe Gladstone investment is an attractive investment for that for anyone seeking continuous monthly distributions.

David Gladstone: And supplemental distributions from the potential capital gains and other income that's generated by this company.

David Gladstone: <unk> hopes to continue.

David Gladstone: I show you a strong return on your investment just like we did last year, but now let's stop and.

Speaker Change: As the operator down to let some people come in that ask US questions. We like all your questions Donna.

Speaker Change: Thank you the floor is now open for questions.

Speaker Change: To ask a question. Please press star one on your telephone keypad at this time.

Speaker Change: Confirmation tone will indicate your.

Speaker Change: In the question queue, you May press star two if he would like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up the handset before pressing the star Keys again Thats Star One to register a question at this time.

Speaker Change: Our first question is coming from Mickey Schlein of Ladenburg. Please go ahead.

Mickey Schlein: Yes, good morning, everyone.

Speaker Change: Dave I appreciate it.

Speaker Change: Your comments on on the tariff issue, but I was hoping you could give us some sense of on a.

Speaker Change: Quantitative basis.

Speaker Change: How much of your portfolio does asics exposure to tariff risk.

Mickey Schlein: Yeah, well I guess Micky.

Mickey Schlein: The correct answer is probably most of them in some regards I mean, certainly you know we have a couple of companies that are.

Mickey Schlein: Currently.

Mickey Schlein: Well have produced and manufacture a good part of their product in China. Some of that's already being shifted had been working on that that's a that's a relatively small portion actually of the portfolio that are directly affected that way the other.

Mickey Schlein: That could be impacted where obviously things.

Mickey Schlein: Around steel issues like that so I guess, I said again and say in fairness, the majority of them, but frankly with the exception.

Mickey Schlein: A one or two none that we are I would say overly concerned about are those that have that direct impact again have already started working on and had been working on advancing obviously product and you know ahead of the of the terrorists to some degree so theres been a buildup of inventory.

Mickey Schlein: Obviously effects working capital, but in a positive way.

Mickey Schlein: But for some of these prices hit and then obviously ultimately how the supply chain you know as things start to hopefully unravel here over the next number of months. So long answer, but again, everyone is going to be impacted in some regard, but the ones where they're directly producing a product almost.

Mickey Schlein: Exclusive of any China. Those are just a few companies and we're ready been taking some things to help that and these companies are doing well, regardless actually been doing very well going in the air So I'm not overly concern per se about about those in that regard, but we have to work through you know being being sensitive to it and alternatives.

Mickey Schlein: Okay.

Mickey Schlein: Okay, I think I understood, thanks for that and Dave in the consumer sector.

Speaker Change: How much exposure does the portfolio have two to lower income customers, which seems to be the groups that are the weakest.

Say that again about what about customers.

Speaker Change: So and in the consumer sector, how much exposure does the port hope so as the portfolio have to lower income customers.

Speaker Change: Lower income.

Speaker Change: Uh huh.

Speaker Change: I don't I wouldn't honestly you know how to answer that question. I mean, you know when you look at the consumer type products. We have you know things like.

Speaker Change: Especially toys are products that go through people like Walmart are I wouldn't necessarily classify those as you know higher income or lower income per se. So I I don't think we have any of that I would really consider you know it's not like they're foodstuffs as an example that would go to.

Speaker Change: Let's say I again, I hate to use expression you know much lower income type category. We don't have that kind of exposure I would say these are more you know normal type maybe some discretionary to some degree which would affect obviously you know various various folks, but again you know the move.

Speaker Change: Men and tariff costs to our company that then might or might not get past or we're not passing everything through from a dollar perspective actually on each item is actually relatively small in a sense right. It's even though I know of 145% sounds high, especially if we go back to 40% tier for product that we might be.

Speaker Change: At 10 Bucks you know now is going to be more like maybe you know 12 to $14. So it's not again like we're talking about items that are going to be just you know grievously overpriced and therefore, no one's going to take them on.

Speaker Change: I understand.

Speaker Change: Dave a couple of quarters quarters ago, you were.

Speaker Change: Somewhat optimistic on the outlook for hubs are going back on accrual around now.

Speaker Change: Obviously that hasn't happened yet I think there may have been something in the prepared remarks, but there was there was some background noise. So it was hard to see a harder here could you update us on the outlook for hubs and maybe your other non accruals.

Speaker Change: Yeah. So I think the comment that was made that tailor made.

Speaker Change: Is that we still have four companies on nonaccrual and actually three of them are all profitable, including Hobbs Havas has continued to improve its profitability. We're still yes optimistic we're going to be able to bring them back onto accrual probably again.

Speaker Change: Things do move around a bit, but they're actually worry they're performing I'm I'm hopeful that it might bring them back on accrual by the end of this year.

Speaker Change: And then two of the other companies are profitable moving in the right direction and some things are going on with those companies that again, if not back on accrual, they're certainly not getting worse. If you will in that regard. So yeah I continue to be as I say optimistic but.

Speaker Change: Overall, its not impacting and has not impacted necessarily the results of the portfolio overall and the results that we actually have achieved in spite of that.

And Dave when you talk about profits or are you, referring to EBITDA or net income or operating income what would what are you referring to yeah. We look at it we look at generally EBITDA because that's obviously an important thing so I look at that because that's cash flow right basically for these companies in.

Speaker Change: So when I refer to profitability, yes, that's so obviously your gross margins improved overall operating income has improved but the key thing then is obviously as we look at it in a way we can because that's how we generate value of companies as well as through the the EBITDA and how that impacts actual cash flow, which indeed is all.

Speaker Change: Also what allows for the payments say of our interest and what have you as we look at a company like hubs as it continues to improve in fact, we're even looking at some add on things to do to do with hubs. So fundamentally yes. Its well managed now is doing really well and I think it's going to be good over time.

Speaker Change: So generally you.

Speaker Change: Optimistic on the non accruals, but on the flipside, what what's going on with Horizon Stope, Mark did a fairly distressed level. It doesn't seems to be going in the right direction.

Speaker Change: No actually our horizon is very profitable actually.

Speaker Change: And it's EBITDA again has continued to improve horizon, you may or may not recall, we actually did a dividend recap with horizon back just about not quite two years ago year, and a half or so ago.

Speaker Change: And about two years ago, and which was a positive event right and you know when we did that we obviously put leverage more leverage on the business. We effectively had some issues around some of their customer base remember they sell they service people like Hertz, etc.

Speaker Change: In the car rental space and we did see some drop off in the EBITDA relatively speaking, it's again still positive. So as a result of that we've been working on just kind of re doing a bit of the of that leverage scenario that we did when we took the dividend recap. So we can get.

Speaker Change: The company the ability to continue to grow and perform or as we like it. So yeah. It's got it got hit from a mark standpoint, because of multiple and also you know again, its EBITDA being down relatively speaking, but again, it's it's performing.

Speaker Change: Under the circumstances, it pretty decent shape.

Speaker Change: I understand.

David Gladstone: So those are all my questions Dave Thanks for your time this morning.

Speaker Change: Sure. Thanks.

Speaker Change: Hey, Don on do we have another question, we do and once again, if you do have a question Thats star one on your telephone keypad. The next question is coming from Erik Zwick of Lucid capital markets. Please go ahead.

Erik Zwick: Thanks, Good morning, everyone wanted to start with just a follow up to one of your prepared remarks, where you indicated that you're cautiously optimistic for buyout activity in the current year and wondering if you could maybe just kind of address the two components of that one what you're seeing that gives you. Some some optimism in into what gives you a little bit of a cautious stance.

Erik Zwick: It's more than just the current market volatility and economic uncertainty.

Erik Zwick: Sure.

Speaker Change: Thanks, Eric glad you're here.

Speaker Change: So the cautiously optimistic is based on the.

Speaker Change: The fact that I mentioned in my remarks, we've got a couple that were close to actually closing.

Speaker Change: That which is which is a good thing and secondly from our standpoint, obviously, we always are looking at our I'll call. It backlog of companies that we have and you know for US a couple of important categories or what we call initial review, where we've actually you know taking a look at some.

Speaker Change: Whether it's from an investment banker or are other sources, we've gotten interested enough. We've probably met the management talk to the management team and were doing our evaluations and then you.

Speaker Change: Moving forward to the stage that we might then put together what we would call a letter of intent, which would need to get approved by our investment Committee to then if that gets accepted from a valuation standpoint from the seller move into the actual full bore due diligence so thinking about it that way we have a couple right now that are actually in.

Speaker Change: That are pretty close to being in that due diligence phase that we've received approval on moving forward in a number of others that are in the in that early initial review and where we've actually we've initiated what again, what we call an indication of interest to the company in terms of what we're willing.

Speaker Change: Going to pay so that activity level is an important thing to look at it it's like you might call. It a funnel right.

Speaker Change: That's that's in we feel really in good shape.

Speaker Change: And the cautious reason are the up the cautious optimism is the companies that we are looking at that are filling that funnel are at values because of probably some of the economic uncertainty that our values that we believe makes some sense. So the fundamentals of the business are still pretty good.

Not all of them as I mentioned necessarily are impacted by the tariffs. There are a couple we're looking at are we doing really thorough analysis around what the tariff impact could be and we've factored that into our valuation. So we're not backing away just because you know the yes. There is a global issue and we gotta be concerned we are concerned but.

Speaker Change: We're working to try to find those where we think it might make some sense keep in mind also our activity level is such that we don't you know we generally don't target doing 678, new acquisitions a year. You know we you know we do really well as we did last year, we had a really good year, a couple hundred million dollars of new investments.

Speaker Change: And if we can be in that same general category grow that number a bit that that's kind of where we want to be so it's kind of in that context that we're able to the companies who are working on the companies. We're evaluating are all in that category of numbers that we believe those companies are good well value.

Speaker Change: Oh, we were in a competitive position with them in the various stages and you know the next number of months go by especially if we get some clarity let's call. It around the level of terrorists or we can factor that into the math.

That's why I feel like you know, it's not like we're just closing putting pencils down as expression, we use and not doing anything we're actually working pretty pretty aggressively on trying to find closure on a number of opportunities long answer I'm, sorry, but that's kind of where how we see it.

Speaker Change: Yeah, no apology needed that was very thorough I was going to ask you about the impact of the current market volatility.

Speaker Change: Volatility on valuation and you address that as well so thank you.

Speaker Change: Maybe moving to educators resourcing the dividend recap there maybe if you can just walk me through the rationale for why this is the right time and strategy, what the new capital will help them to do and maybe a second part just are there any other dividend recap opportunity that you see in your portfolio today.

Speaker Change: Yeah.

Speaker Change: I'd say the last part of the question today, I don't see any necessarily but we're always obviously continuing to evaluate that are.

Speaker Change: Keep in mind, when we do a dividend recap we've done a few have not done great. Many but when we do a dividend recap it's usually around a couple of things. One we have a management team that has got investment in the company and it's an opportunity for them to get some liquidity.

Speaker Change: We like them, we like the basics and the fundamentals of the business and so we collectively believe it makes sense going forward and doing that we then also obviously for us to have the opportunity to put in a bit more capital usually it's in the form of some leverage which obviously increases the opportunity for us to generate income.

Speaker Change: On that incremental call it debt investment at the same time that we we took out some money neither generated a cap gain in the educator side, we didn't do it where we generated a cash gain per se, but we did generate incremental income for us dividend income, which was which was a positive in specifically in there.

Their case the management team that when we bought the business some years ago. It was with a family team are really really experienced very good in this business and frankly. It was you know we've been looking at the idea of would we exit the whole company potentially sell it we.

Speaker Change: We felt that frankly, the way things were going have the team we liked it well enough that it was kind of a reinvestment decision. So we and the management team agreed to stay in to recap it as I mentioned they took some money off we took some money out and we keep going forward with the business and yeah. That's right.

Speaker Change: Kind of where that one stands.

Speaker Change: Excellent and last one for me just the.

I think I missed it in the prepared remarks Taylor I think you mentioned the current spillover amount and I neglected to write it down fast enough could you repeat that please.

Speaker Change: Sure. So we ended the year with $55 3 million of spillover.

Speaker Change: The current level of $1 50 per share so that amount covers the current run rate for the monthly base of eight cents per share so 96 ounce and our 54.

Speaker Change: Supplemental that we're going to pay in June.

Speaker Change: Perfect. Thank you so much for taking my questions today.

Speaker Change: Thanks, Eric and just to make one point here I know, we talk about buyouts were not in that giant buyout game, which seems to be stalled because there's no exit for them in the public marketplace. So there's a lot of people with investments in March buyouts that don't have any liquidity.

Speaker Change: We're not in that.

Speaker Change: Put something up for sale and usually get it sold pretty quick.

Speaker Change: That's just a difference in our buy business versus the giant buyout business that goes on in the marketplace.

Speaker Change: Any other questions no.

Speaker Change: At this time, Sir I would like to turn it back over to you for closing comments.

Speaker Change: Okay. Thank you all for listening to our report and Unfortunately, we don't have enough questions. We wish you guys would dream up some more questions for us to answer we are pleased to do that and thank you. So much for attending this meeting and we will see you next quarter. That's the end of this call.

Speaker Change: Ladies and gentlemen, thank you for your participation and interest in Gladstone investments. This concludes today's event you may disconnect your lines or log off the webcast at this time and enjoy the rest of your day.

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