Eric Zwick • Hovde Group

Question 1

Eric Zwick's questions to Gladstone Capital Corp (GLAD) leadership • Q2 2025

May 7, 2025

Question

Eric Zwick asked for an update on the deal pipeline's size and composition, the portfolio's exposure to government contracts, and the drivers behind the expected performance improvement in three recently depreciated investments.

Answer

Robert Marcotte (Executive) described the deal pipeline as very healthy, with $100-$150 million in potential volume, primarily from new deals (80%). He clarified that the portfolio has minimal exposure to government services contracts, with some indirect exposure via defense and healthcare. Marcotte attributed confidence in the turnaround of the three underperforming assets to addressing specific issues like customer concentration, management changes, and new capital investment, noting their long-term growth profiles remain intact.

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Question 2

Eric Zwick's questions to Cion Investment Corp (CION) leadership • Q2 2024

Aug 8, 2024

Question

Eric Zwick inquired about the current state of credit spreads on new originations, asking if they are stabilizing. He also asked about the pipeline's mix of new versus follow-on deals, the company's strategy for managing leverage, and whether they are observing any signs of broader economic weakening.

Answer

Gregg Bresner, President and CIO, stated that while the broader market sees continued spread tightening, CION maintained its premium (SOFR+660) through selectivity and expects a consistent pipeline mix in Q3. He noted they have been in a defensive underwriting mode since early 2023 and see market dynamics driven more by capital supply than deteriorating fundamentals. CFO Keith Franz added that the current net leverage of 1.13x is below their target of 1.25x and reflects recent net investment activity.