Gladstone Investment Corporation (GAIN) Expands Energy Exposure with Rowan Energy Acquisition

Gladstone Investment Corporation (NASDAQ:GAIN) is included among the 13 Highest Paying Monthly Dividend Stocks to Buy.

On December 12, Gladstone Investment Corporation (NASDAQ:GAIN) announced the acquisition of Rowan Energy, Inc., along with Xyresic Capital. Gladstone Investment provided senior secured debt and the majority of the equity to complete the deal.

Rowan is based in Oklahoma City, Oklahoma. It operates in the US oil and gas services space. The company focuses on advanced frac sand filtration, completion equipment deployment, and field operations support. In practical terms, this is the kind of behind-the-scenes work that keeps drilling and completion projects moving on schedule.

Christopher Lee, Senior Managing Director of Gladstone Investment, made the following statement:

“Rowan’s commitment to delivering outstanding solutions for its customers has been central to its impressive growth. We are proud to invest in a business that has set the standard for success in its sector and see tremendous growth potential ahead. Further, we are thrilled to expand our relationship with Xyresic.”

Gladstone Investment Corporation (NASDAQ:GAIN) is structured as a business development company. It invests in private, lower middle market businesses using a mix of debt and equity. These are often companies that are too small to attract large private equity firms or traditional bank financing.

The model is fairly straightforward as the company provides loans for steady income and takes equity stakes for long-term upside. The portfolio typically targets a mix of about 75% debt and 25% equity, aiming to generate reliable cash flow while also capturing gains when portfolio companies are sold.

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Disclosure: None.