Company: GAINI
Filing Date: 2025-05-13
Form Type: 10-K
Source: 0001321741-25-000010
Chunk: 176

Company: GLADSTONE INVESTMENT CORPORATION\DE
Filing Date: 2025-05-13
Form: 10-K
Item: Item 5
Chunk 176
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.1875%) in any calendar quarter. The catch-up provision is meant to provide our Adviser with 20% of our pre-incentive fee net investment income as if a hurdle rate did not apply when our pre-incentive fee net investment income exceeds 125% of the quarterly hurdle rate in any calendar quarter. For the three months ended March 31, 2025, the income-based incentive fee was $2.3 million.The capital gains-based incentive fee equals 20% of our net realized capital gains in excess of unrealized depreciation since our inception, if any, computed as all realized capital gains net of all realized capital losses and unrealized depreciation since our inception, less any prior payments, measured at the end of each calendar year and payable at the end of each fiscal year. During the three months ended March 31, 2025, we recorded capital gains-based incentive fees of $2.1 million in accordance with GAAP, which were not contractually due under the terms of the Advisory Agreement.No credits were applied to incentive fees for the three months ended March 31, 2025; however, the Adviser may credit such fees in the future.Examples of how the incentive fee would be calculated are as follows: •Assuming pre-incentive fee net investment income of 0.55%, there would be no income-based incentive fee because such income would not exceed the hurdle rate of 1.75%. •Assuming pre-incentive fee net investment income of 2.00%, the income-based incentive fee would be as follows: = 100.0% × (2.00% - 1.75%) = 0.25% •Assuming pre-incentive fee net investment income of 2.30%, the income-based incentive fee would be as follows: = (100.0% × (“catch-up”: 2.1875% - 1.75%)) + (20.0% × (2.30% - 2.1875%)) = (100.0% × 0.4375%) + (20.0% × 0.1125%) = 0.4375% + 0.0225% 

47

= 0.46% •Assuming net realized capital gains of 6% and realized capital losses and unrealized capital depreciation of 1%, the capital gains-based incentive fee would be as follows: = 20.0% × (6.0% -