Gladstone Investment (GAIN)

Our portfolio is concentrated in a limited number of companies and industries, which subjects us to an increased risk of significant loss if any one of these companies does not repay us or if the industries experience downturns.

As of May 29, 2009, we had investments in 17 portfolio companies of which there were three investments, A. Stucki Holding Corp., Chase II Holdings Corp. and Acme Cryogenics, Inc., that comprised approximately $87.4 million or 36.5% of our total investment portfolio, at cost. A consequence of a limited number of investments is that the aggregate returns we realize may be substantially adversely affected by the unfavorable performance of a small number of such loans or a substantial write-down of any one investment. Beyond our regulatory and income tax diversification requirements, we do not have fixed guidelines for industry concentration and our investments could potentially be concentrated in relatively few industries. In addition, while we do not intend to invest 25% or more of our total assets in a particular industry or group of industries at the time of investment, it is possible that as the values of our portfolio companies change, one industry or a group of industries may comprise in excess of 25% of the value of our total assets. As of May 29, 2009, 23.9% of our total assets were invested in machinery companies and 23.7% of our total assets were invested in diversified conglomerate manufacturing companies. As a result, a downturn in an industry in which we have invested a significant portion of our total assets could have a materially adverse effect on us.

Our portfolio is concentrated in a limited number of companies and industries, which subjects us to an increased risk of significant loss if any one of these companies does not repay us or if the industries experience downturns.

As of May 29, 2009, we had investments in 17 portfolio companies of which there were three investments, A. Stucki Holding Corp., Chase II Holdings Corp. and Acme Cryogenics, Inc., that comprised approximately $87.4 million or 36.5% of our total investment portfolio, at cost. A consequence of a limited number of investments is that the aggregate returns we realize may be substantially adversely affected by the unfavorable performance of a small number of such loans or a substantial write-down of any one investment. Beyond our regulatory and income tax diversification requirements, we do not have fixed guidelines for industry concentration and our investments could potentially be concentrated in relatively few industries. In addition, while we do not intend to invest 25% or more of our total assets in a particular industry or group of industries at the time of investment, it is possible that as the values of our portfolio companies change, one industry or a group of industries may comprise in excess of 25% of the value of our total assets. As of May 29, 2009, 23.9% of our total assets were invested in machinery companies and 23.7% of our total assets were invested in diversified conglomerate manufacturing companies. As a result, a downturn in an industry in which we have invested a significant portion of our total assets could have a materially adverse effect on us.

Our portfolio is concentrated in a limited number of companies and industries, which subjects us to an increased risk of significant loss if any one of these companies does not repay us or if the industries experience downturns.

As of May 29, 2009, we had investments in 17 portfolio companies of which there were three investments, A. Stucki Holding Corp., Chase II Holdings Corp. and Acme Cryogenics, Inc., that comprised approximately $87.4 million or 36.5% of our total investment portfolio, at cost. A consequence of a limited number of investments is that the aggregate returns we realize may be substantially adversely affected by the unfavorable performance of a small number of such loans or a substantial write-down of any one investment. Beyond our regulatory and income tax diversification requirements, we do not have fixed guidelines for industry concentration and our investments could potentially be concentrated in relatively few industries. In addition, while we do not intend to invest 25% or more of our total assets in a particular industry or group of industries at the time of investment, it is possible that as the values of our portfolio companies change, one industry or a group of industries may comprise in excess of 25% of the value of our total assets. As of May 29, 2009, 23.9% of our total assets were invested in machinery companies and 23.7% of our total assets were invested in diversified conglomerate manufacturing companies. As a result, a downturn in an industry in which we have invested a significant portion of our total assets could have a materially adverse effect on us.

As of May 29, 2009, we had investments in 17 portfolio companies
of which there were three investments, A. Stucki Holding Corp., Chase II
Holdings Corp. and Acme Cryogenics, Inc., that comprised approximately
$87.4 million or 36.5% of our total investment portfolio, at cost. A
consequence of a limited number of investments is that the aggregate returns we
realize may be substantially adversely affected by the unfavorable performance
of a small number of such loans or a substantial write-down of any one
investment. Beyond our regulatory and income tax diversification requirements,
we do not have fixed guidelines for industry concentration and our investments could
potentially be concentrated in relatively few industries. In addition, while we
do not intend to invest 25% or more of our total assets in a particular
industry or group of industries at the time of investment, it is possible that
as the values of our portfolio companies change, one industry or a group of
industries may comprise in excess of 25% of the value of our total assets. As
of May 29, 2009, 23.9% of our total assets were invested in machinery
companies and 23.7% of our total assets were invested in diversified
conglomerate manufacturing companies. As a result, a downturn in an industry in
which we have invested a significant portion of our total assets could have a
materially adverse effect on us.

As of May 29, 2009, we had investments in 17 portfolio companies
of which there were three investments, A. Stucki Holding Corp., Chase II
Holdings Corp. and Acme Cryogenics, Inc., that comprised approximately
$87.4 million or 36.5% of our total investment portfolio, at cost. A
consequence of a limited number of investments is that the aggregate returns we
realize may be substantially adversely affected by the unfavorable performance
of a small number of such loans or a substantial write-down of any one
investment. Beyond our regulatory and income tax diversification requirements,
we do not have fixed guidelines for industry concentration and our investments could
potentially be concentrated in relatively few industries. In addition, while we
do not intend to invest 25% or more of our total assets in a particular
industry or group of industries at the time of investment, it is possible that
as the values of our portfolio companies change, one industry or a group of
industries may comprise in excess of 25% of the value of our total assets. As
of May 29, 2009, 23.9% of our total assets were invested in machinery
companies and 23.7% of our total assets were invested in diversified
conglomerate manufacturing companies. As a result, a downturn in an industry in
which we have invested a significant portion of our total assets could have a
materially adverse effect on us.

Our portfolio is concentrated in a limited number of companies and industries, which subjects us to an increased risk of significant loss if any one of these companies does not repay us or if the industries experience downturns.

As of December 31, 2008, we had investments in 47 portfolio companies. A consequence of a limited number of investments is that the aggregate returns we realize may be substantially adversely affected by the unfavorable performance of a small number of such loans or a substantial write-down of any one investment. Beyond our regulatory and income tax diversification requirements, we do not have fixed guidelines for industry concentration and our investments could potentially be concentrated in relatively few industries. In addition, while we do not intend to invest 25% or more of our total assets in a particular industry or group of industries at the time of investment, it is possible that as the values of our portfolio companies change, one industry or a group of industries may comprise in excess of 25% of the value of our total assets. As of December 31, 2008, 19.7% of our total assets were invested in machinery companies, 18.3% were invested in diversified conglomerate manufacturing companies and 10.7% were invested in health, education and childcare companies. As a result, a downturn in an industry in which we have invested a significant portion of our total assets could have a materially adverse effect on us.