Company: GAINI
Filing Date: 2025-02-12
Form Type: 10-Q
Source: 0001321741-25-000005
Chunk: 214

Company: GLADSTONE INVESTMENT CORPORATION\DE
Filing Date: 2025-02-12
Form: 10-Q
Item: Part I, Item 8
Chunk 214
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 drives the hurdle rate. 

55

The base management fee, loan servicing fee, incentive fee, and their related non-contractual, unconditional, and irrevocable credits are computed quarterly, as described under “Transactions with the Adviser” in Note 4 — Related Party Transactions in the accompanying Notes to Consolidated Financial Statements and are summarized in the following table:

Nine Months Ended December 31,20242023Average total assets subject to base management fee(A)$929,133 $858,267 Multiplied by prorated annual base management fee of 2.0%1.5 %1.5 %Base management fee(B)$13,937 $12,874 Credits to fees from Adviser - other(B)(4,147)(5,117)Net base management fee$9,790 $7,757 Loan servicing fee(B)$6,821 $6,829 Credits to base management fee - loan servicing fee(B)(6,821)(6,829)Net loan servicing fee$— $— Incentive fee – income-based$2,481 $6,142 Incentive fee – capital gains-based(C)5,316 9,259 Total incentive fee(B)$7,797 $15,401 Credits to fees from Adviser - other(B)— — Net total incentive fee$7,797 $15,401 

(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 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.

Interest expense increased $1.7 million, or 9.5%, during the nine months ended December 31, 2024, as compared to the prior year period, primarily due to interest expense related to the 8.00% 2028 Notes issued in May 2023 and an increase in the effective interest rate, partially offset by decreased borrowings on the Credit Facility. The weighted-average balance outstanding on the Credit Facility during the nine months ended December 31