Company: GAINI
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001321741-25-000022
Chunk: 123

Company: GLADSTONE INVESTMENT CORPORATION\DE
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 2
Chunk 123
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 interest expense and base management fee, partially offset by a decrease in other expense and an increase in fee credits from the Adviser.

In accordance with GAAP, we recorded a $4.7 million capital gains-based incentive fee during the six months ended September 30, 2025, compared to a $2.2 million reversal of previously accrued capital gains-based incentive fee recorded during the six months ended September 30, 2024. The capital gains-based incentive fee was a result of the net impact of net realized gains and net unrealized appreciation (depreciation) on investments during the respective periods. The income-based incentive fee decreased by $0.3 million for the six months ended September 30, 2025, as compared to the prior year period, primarily due to an increase in net assets, which drives the hurdle rate. 

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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:

Six Months Ended September 30,20252024Average total assets subject to base management fee(A)$1,053,700 $906,500 Multiplied by prorated annual base management fee of 2.0%1.0 %1.0 %Base management fee(B)$10,537 $9,065 Credits to fees from Adviser - other(B)(3,037)(1,296)Net base management fee$7,500 $7,769 Loan servicing fee(B)$5,604 $4,416 Credits to base management fee - loan servicing fee(B)(5,604)(4,416)Net loan servicing fee$— $— Incentive fee – income-based$310 $594 Incentive fee – capital gains-based(C)4,688 (2,150)Total incentive fee(B)$4,998 $(1,556)Credits to fees from Adviser - other(B)— — Net total incentive fee$4,998 $(1,556)

(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