1. Gladstone Capital Corporation
Quarterly Overview
for the period ended June 30, 2012

2. Legal Disclaimer
This presentation may include forward-looking statements. These forward-looking
statements include comments with respect to our objectives and strategies, and the results
of our operations and our business.
However, by their nature, these forward-looking statements involve numerous assumptions,
uncertainties and opportunities, both general and specific. The risk exists that these
statements may not be fulfilled. We caution readers of this presentation not to place undue
reliance on these forward-looking statements as a number of factors could cause future
company results to differ materially from these statements.
Forward-looking statements may be influenced in particular by factors such as fluctuations
in interest rates and stock indices, the effects of competition in the areas in which we
operate, and changes in economic, political, regulatory and technological conditions. We
caution that the foregoing list is not exhaustive.
When relying on forward-looking statements to make decisions, investors should carefully
consider the aforementioned factors as well as other uncertainties and events.
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3. Overview
• Gladstone Capital Corporation
• Business Development Company (BDC) with publicly traded common and preferred
stock
• Common stock (NASDAQ: GLAD)
• Preferred stock (NASDAQ: GLADP)
• Managed by Gladstone Management Corporation, an investment adviser registered with
the SEC that manages more than a billion dollars
• One of a family of funds known as The Gladstone Companies (www.gladstone.com)
• Focused on investing in senior and junior debt of private U.S. businesses
• Went public in 2001 and has never missed paying a dividend
• Current common stock dividend is $0.84 per share (per year); paid monthly at $0.07 per
share
• First preferred stock dividend was paid in December 2011; annual rate is 7.125% or
$0.1484 per month per share
• Current Portfolio
• Over $299 million at fair value in total investments as of June 30, 2012
• Invested in 55 companies, 28 states, 21 industries as of June 30, 2012
Disclaimer: Past performance is not an indication of future performance
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4. What is Gladstone Capital?
• Gladstone Capital Corporation is a publicly traded business
development company (BDC) that primarily invests in debt
securities generally consisting of senior term loans, second lien
term loans, and senior subordinate term loans in small and
medium-sized U.S. businesses
• The company seeks to:
• Lend to companies with proven cash flow and successful
track records led by great managers
• Pay monthly dividends to common and preferred
stockholders
• A company operated by an experienced management team, as
discussed in the following slides
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5. Experienced Management Team
David Gladstone, Chairman & CEO
• Over 25 years of experience investing in mid-sized and small private
businesses
• Current Chairman and CEO of all three Gladstone public funds; these
are public companies #7, #8 and #9 in his career
• Past Chairman of Allied Capital and American Capital
• MBA from Harvard Business School; MA from American University;
BA from University of Virginia
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6. Experienced Management Team
Terry Brubaker, Vice Chairman & COO Chip Stelljes, President & CIO
• Over 25 years experience in managing • Over 25 years experience, currently also Vice
businesses Chairman and CIO of Gladstone Commercial
• Currently Vice Chairman and COO at and Gladstone Investment
Gladstone Commercial and Gladstone • Supervises all investing and due diligence,
Investment reviewing hundreds of opportunities and
• Previously on the acquisition team that supervising extensive due diligence on each
helped James River Corp. grow from $200 new investment
million to $7 billion in revenue • Past EVP at Allied Capital, making loans to
• Was group VP of two operating divisions middle market companies with and without
inside James River with 2,300 employees, real estate
$440 million in revenue and 14 locations • Past partner of Camden Partners, a fund
• After James River, CEO of two businesses investing in communications, healthcare and
with 800 employees, $250 million in revenue business services
and 4 locations • Past partner of Columbia Capital, a fund
• Former consultant with McKinsey & investing in communications and information
Company technology
• MBA from Harvard Business School; BSE in • MBA from University of Virginia Business
Aeronautical Engineering from Princeton School; BA in Economics from Vanderbilt
University University
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7. Experienced Management Team
David Gladstone Terry Brubaker Chip Stelljes David Dullum Bob Cutlip
Chairman & CEO Chief Operating Officer Chief Investment Officer Sr. Managing Director Sr. Managing Director
25+ Years Experience 25+ Years Experience 25+ Years Experience 25+ Years Experience 25+ Years Experience
Managing Directors and Directors*
Buzz Cooper Lud Kimbrough John Sateri Greg Bowie Blair Gertmenian
25+ Years Experience 25+ Years Experience 23 Years Experience 10 Years Experience 10 Years Experience
Chris Massey John Freal Jennifer Simpson M. Kipp Kranbuhl Erika Highland
19 Years Experience 25+ Years Experience 12 Years Experience 14 Years Experience 11 Years Experience
Bob Pierce David Meier Chris Daniel Chris Lee Kyle Largent
25+ Years Experience 25+ Years Experience 20 Years Experience 11 Years Experience 10 Years Experience
Laura Gladstone Matt Tucker Michael Beckett
12 Years Experience 13 Years Experience 17 Years Experience
Over 20 professionals concentrating on sourcing, due diligence and portfolio management and 15 professionals in reporting
*Directors noted here are not members of the funds’ boards of directors, rather, these are junior Managing Director positions of the Adviser
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8. Target Market
Why we target companies in the lower middle market
Smaller companies typically offer a more compelling investment
profile than larger ones because of:
 Lower purchase price multiples
 Lower debt multiples
 More protective covenants for lenders
 Meaningful equity co-investment and likely multiple expansion
upon exit
 Small businesses are often less complicated
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9. Examples of Loans Made in Private Businesses
• Small manufacturer of a product or a service business
needs money to grow
• Banks will make short-term loans if the business has
collateral and solid cash flow
• The business gets from us a long-term loan that is the
amount of money they need, but at a higher interest rate
• We typically get an attractive long-term loan that pays
monthly interest that we can pass on as monthly dividends
to our shareholders
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10. Examples of Area Where We Invest
• Electronics
o Specialty connectors and cables
• Light manufacturing
o Manufacturing of small products
• Specialty manufacturing
o Custom and precision manufacturing
• Business services
o Service companies with logistic services
• Communications
o Broadcast, publishing, advertising
• Education
o Schools and training facilities
• Health Care
o Treatment centers
• Distribution
o Parts and metals
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11. Industries We Avoid
• Housing or Home Mortgage
– However, we have invested in one company that makes
kitchen cabinets
• Banks & Financial Institutions
• High-tech Companies or Early Stage Start-ups

12. Typical Investment Structure
Senior & Junior Debt Preferred & Common Stock
(95%) (5%)
 Senior-variable rates with current pay of 8-  Preferred stock
10%  Dividend paid or accrued at 6% to
 Subordinated-variable with a floor and 8% per year
fixed rates with current pay of 12-15%  5 year term
 5-year term with interest only paid  A small additional investment in common
 1st and 2nd Lien: some collateral and stock
reasonable cash flow coverage  Options to own common stock
 Strong inter-creditor agreement that avoids  Usually accompanied by a “Put” option
blockage of interest payments that provide an exit from common stock
 Reasonable leverage ratios and attractive  Expected gross return is 25% to 30%
terms
 Success fees to enhance the return
 Expected gross return is 14% to 18%,
depending on risk profile
Disclaimer: Past performance is not an indication of future performance
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13. Track Record
• Common Stock traded on NASDAQ (GLAD)
– Paying $0.07 per share per month, or $0.84 per share per year
• Preferred stock traded on NASDAQ (GLADP)
– Paying $0.1484 per share per month, or $1.7813 per share per year
• Conservative balance sheet:
– Debt to equity ratio of 0.7 to 1.0 as of June 30, 2012
– $87.3 million borrowed on $137 million line of credit as of June 30, 2012
• Invested in 55 companies as of June 30, 2012
• At June 30, 2012, had eight loans in default, representing 1.9% of our
investment portfolio at fair value
Disclaimer: Past performance is not an indication of future performance
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14. Portfolio Diversification as of June 30, 2012
Gladstone Capital: By Industry at fair value
Electronics - 18%
Healthcare, education & childcare - 11%
Mining, steel & non-precious metals - 10%
Broadcast (TV & Radio) - 9%
Automobile - 8%
Retail Stores - 7%
Oil and gas - 6%
Aerospace and defense - 5%
Printing and publishing - 4%
Textiles and leather - 3%
Personal & non-durable consumer products - 3%
Machiney - 3%
Beverage, food and tobacco - 2%
Personal, food and miscellaneous services - 2%
Diversified/conglomerate manufacturing - 2%
Buildings and real estate - 2%
Leisure, amusement, movies & entertainment - 2%
Home & office furnishings - 1%
Telecommunications - 1%
Other - 1%
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15. Geographic Diversification as of June 30, 2012
We have outstanding investments in businesses in states highlighted in blue
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16. Historical Net Investment Income
Net Investment Income Total Amount Amount Per
FYE September 30 (in millions) Common Share
2005 $17.3 $1.53
2006 $19.4 $1.70
2007 $22.3 $1.69
2008 $26.6 $1.35
2009 $21.0 $1.00
2010 $17.8 $0.84
2011 $18.4 $0.88
2012* $19.3 $0.92
*Annualized based on 9 months operating results
Disclaimer: Past performance is not an indication of future performance
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17. Gladstone Capital Statistics vs. Public Market BDCs
GLAD BDC Median
Price/NAV per common share 0.94x 0.99x
Debt/Common Equity 69.7% 53.6%
Common Dividend Yield 10.0% 9.7%
Market Cap (common shares) $176 $305
Source: Raymond James BDC Industry Weekly Newsletter, August 3, 2012
Disclaimer: Past performance is not an indication of future performance
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18. We are a Shareholder Focused Company
• Maintain the monthly distribution and grow that distribution
when earnings increase
• Emphasis on stability of income first and growth in income
second
• Maintain stock liquidity so shareholder may easily buy or sell
the stock
• Quarterly published reports and quarterly calls to shareholders
• Robust informational website (www.gladstonecapital.com) and
notifications by e-mail to those who sign up
• Shareholder dividend reinvestment plan for common stock
• Audited by PricewaterhouseCoopers LLP
• Investor Relations Hotline: (866) 366-5745
• Adviser with strong reputation (www.gladstone.com)
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19. Highlights
• Experienced Management Team: Operating team with a successful
track record underwriting private businesses
• Successful CEO: Has a “brand name” reputation demonstrated by the
success of nine public companies
• Business Model: Emphasis on deal flow from a proprietary
originations network and strategic relationships with banks and LBO
funds
• Market Opportunity: Right time in the business cycle to take
advantage of the lack of funding for businesses
• Conservative Underwriting: Focused on the cash flow of the small
value-oriented businesses
• Focused on Interest Income: Interest payments on our loans allow us
to pay dividends to our shareholders
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20. Why Own GLAD Stock
• Common Stock current yield of 9.7% at August 15, 2012
• Preferred Stock current yield of 6.9% at August 15, 2012
• 105 consecutive monthly common stock distributions as of August 1,
2012 and prior to monthly distributions, the company paid eight
consecutive quarterly distributions
• Diversification of borrowers in various states and various industries
• Investing in small and mid-sized U.S. businesses with steady cash
flows
• Liquidity for investors – common and preferred stocks are listed on
NASDAQ (GLAD & GLADP)
• Management has ownership of the common stock
Disclaimer: Past performance is not an indication of future performance
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21. Other Information
• Website for Gladstone Capital
• www.gladstonecapital.com
• Contains much more information about our company
and the companies in our portfolio
• Website for the investment adviser
• www.gladstonemanagement.com
• Information on all funds managed by the company’s
investment adviser
• www.gladstone.com
• Common Stock traded on NASDAQ (GLAD)
• Preferred Stock traded on NASDAQ (GLADP)
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