Gladstone Alternative Income Fund

$9.98

Current Distribution Rate **
6.22%

$9.96

Current Distribution Rate **
6.23%

$9.98

Current Distribution Rate **
6.22%

Fund Overview

At-a-Glance

Inception
December 9, 2024
Total Managed Assets
$19,899,720
Total Current Investments
12
Distribution Frequency***
Monthly
Class A Return YTD
0.00%
Class A Return since Inception (Cumulative)
0.00%

About our Fund

Gladstone Alternative Income Fund (“GALT” or “our Fund”) is a continuously offered, non-diversified, unlisted closed-end management investment company that is structured as an interval fund.  Our primary investment objective is to (i) achieve and grow current income by investing primarily in debt securities of established businesses or real estate holding intermediaries that we believe will provide stable earnings and cash flow to pay expenses, make principal and interest payments on our outstanding indebtedness and make distributions to shareholders that grow over time; and (ii) provide our shareholders with long-term capital appreciation in the value of our assets by investing in equity securities of established businesses, including in connection with our debt investments, that we believe can grow over time to permit us to sell our equity investments for capital gains.

Our Fund materials below must be preceded or accompanied by a prospectus. By proceeding, you acknowledge that you have received and reviewed the prospectus. If not, a prospectus can be obtained by clicking here.  Please also view the risk factors associated with an investment in our Fund by clicking here.

Primary Investment Strategy: We will seek to achieve our investment objective primarily by investing in directly originated loans to lower and middle market private businesses in the United States, broadly syndicated loans and commercial real estate loans. We may also make equity investments, including in connection with our directly originated loans. We will seek to avoid investing in high-risk, pre-revenue,  early-stage enterprises. We expect that most, if not all, of the debt securities we acquire will not be rated by a rating agency. Investors should assume that these loans would be rated below what is considered “investment grade” quality. Investments rated below investment grade are often referred to as high yield securities or junk bonds and may be considered higher risk as compared to investment grade debt instruments.

Managed by Gladstone Management Corporation, our private investment adviser founded in 2003.

Performance

Class A Shares

as of March 12, 2025

Daily NAV*

$9.98

NAV Daily Change

$0.00

% Daily NAV

0.00%

Performance

As of March 12, 2025

Scroll to view
Month To Date Year To Date Trailing Twelve Months Since Inception (Annualized) Since Inception (Cumulative)
0.00% 0.00% - - 0.00%

Returns include reinvestment of distributions and reflect fund expenses. The estimated expense ratio is 4.90% when excluding estimated interest payments on borrowed funds of 1.83%. See disclosures for full breakdown of our expenses. Expense ratios are annualized and calculated as a percentage of estimated average net assets. We intend to utilize leverage for investment and other general corporate purposes. There is no assurance that monthly distributions paid by our Fund will be maintained at a targeted level or that they will be paid at all. The performance quoted represents past performance, is no guarantee of future results and may not provide an adequate basis for evaluating the performance of our Fund over varying market conditions or economic cycles. Investment return and principal value of an investment will fluctuate; therefore, you may have a gain or loss when you sell your shares. Current performance may be higher or lower than the performance data quoted.

Other share classes may be available at certain intermediaries. Please review our prospectus (by clicking here) or consult your Gladstone Securities, LLC (member, FINRA) sales team member for specific information regarding fees and expenses associated with other share classes. To view Gladstone Securities’ territory map, please click here.

Portfolio Characteristics

as of February 28, 2025

Top 10 Investment Holdings

HoldingsPercentage
Morgan Stanley ILF (Government Portfolio)33.51%
Ricardo Defense, Inc. (Term Loan)18.40%
Vet's Choice Radiology LLC (Term Loan)11.31%
Viron International, LLC (Term Loan)10.80%
Food Processor and Distribution Business (Term Loan)10.05%
Nielsen-Kellerman Acquisition Corp. (Term Loan)6.88%
Ricardo Defense, Inc. (Preferred Stock)5.22%
Nielsen-Kellerman Acquisition Corp. (Preferred Stock)3.17%
Food Processor and Distribution Business (Preferred Stock)0.50%
Nielsen-Kellerman Acquisition Corp. (Line of Credit)0.15%
Viron International, LLC (Preferred Stock)0.01%

Allocation By Asset Type

AssetPercentage
Direct Lending (Floating Rate)57.59%
Cash & Money Markets33.51%
Equities (Private, Preferred)8.90%

Allocation By Industry

IndustryPercentage
Cash & Money Markets33.51%
Aerospace & Defense23.62%
Healthcare, Education & Childcare11.31%
Diversified/Conglomerate Manufacturing10.81%
Food & Tobacco10.55%
Electronics10.20%

Holdings and allocations, unless otherwise indicated, are based on the total portfolio and subject to change without notice. Data shown is for informational purposes only and not a recommendation to buy or sell any security.

Portfolio Management

Mr. Gladstone is the founder of all of the Gladstone funds: Gladstone Capital Corporation, Gladstone Commercial Corporation, Gladstone Investment Corporation, Gladstone Land Corporation, and Gladstone Alternative Income Fund.  He has been our Chief Executive Officer since inception. Mr. Gladstone is also the President of Gladstone Land Corporation, our public farmland REIT. From August 1997 to August 2001, Mr. Gladstone served as Chairman or Vice Chairman of American Capital Strategies, a publicly-traded leveraged buyout fund and mezzanine debt finance company. From 1974 to February 1997, Mr. Gladstone held various positions, including Chairman and Chief Executive Officer, with Allied Capital Corporation, Allied Capital Corporation II, Allied Capital Lending Corporation, Allied Capital Commercial Corporation and Allied Capital Advisors Inc. The Allied companies were the largest group of publicly-traded mezzanine debt funds and were managers of two private venture capital limited partnerships. From 1992 to 1997, Mr. Gladstone served as a Director, President and Chief Executive Officer of Business Mortgage Investors, a private mortgage REIT managed by Allied Capital. Mr. Gladstone served as a Director of The Riggs National Corporation (the parent of Riggs Bank) from 1993 to May 1997 and of Riggs Bank from 1991 to 1993. He has served as a Trustee of The George Washington University and currently is a Trustee Emeritus. He is a past member of the Listings and Hearings Committee of the National Association of Securities Dealers, Inc. He is a past member of the Advisory Committee to the Women’s Growth Capital Fund, a venture capital firm that finances women-owned small businesses. Mr. Gladstone was the managing member of The Capital Investors, a group of angel investors, and is currently a member Emeritus. Mr. Gladstone is also a past Director of Capital Automotive REIT, a real estate investment trust. Mr. Gladstone holds a MBA from the Harvard Business School, a MA from American University and a BA from the University of Virginia. Mr. Gladstone has coauthored two books on financing for small and medium sized businesses, Venture Capital Handbook and Venture Capital Investing published by Prentice Hall.

Mr. Sateri has been with The Gladstone Companies since April 2007. He currently serves as President of the Gladstone Alternative Income Fund and as a member of the Investment Committee supporting all Gladstone managed credit, equity, and real estate funds (Gladstone Capital Corporation, Gladstone Commercial Corporation, Gladstone Investment Corporation, Gladstone Land Corporation, and Gladstone Alternative Income Fund) as well as originating debt and equity investments in privately held companies.

Prior to joining Gladstone, Mr. Sateri directed an independent consultancy providing special situation investment sourcing, underwriting, and disposition services to institutional investors across a variety of asset classes including middle market company debt and equity; commercial, residential, healthcare, and industrial real estate; and CMBS securitizations. From 1989 to 1998, Mr. Sateri worked for Wells Fargo Bank (predecessor/affiliated companies) in a variety of areas including commercial lending, special assets, and lastly capital markets where he served as Vice President and Senior Portfolio Manager overseeing a team responsible for underwriting, servicing and managing an asset-based loan portfolio with half a billion dollars in commitments to highly leveraged, growth oriented, middle market companies.

Mr. Sateri holds a bachelor’s degree in Business Administration from The University of Hawaii at Manoa and a master’s degree in Real Estate Development from the University of Maryland at College Park.

Ms. Gladstone, our Executive Vice President, has been with The Gladstone Companies since August 2001. She also serves as a Managing Director and works with our mezzanine debt and syndicated loan team.

Prior to joining the firm, Ms. Gladstone worked as an Associate in equity research at ING Barings, where she was responsible for covering companies in the telecommunications industries. Ms. Gladstone also worked for Salomon Smith Barney as an Assistant Analyst in equity research and HSBC, an international bank, as an analyst in Buenos Aires, Argentina. She received her BBA from The George Washington University. She is the coauthor of two books on lending to small business: Venture Capital Handbook and Venture Capital Investing, both published by Prentice Hall.

Mr. Malesardi, our Chief Financial Officer and Treasurer, joined Gladstone in September 2018 as Chief Financial Officer of Gladstone Management Corporation. Previously, Mr. Malesardi served in financial leadership roles of several public and private companies including Presidio Networked Solutions, AES Corporation, OmniSky, PSINet and Watson Wyatt. He also served as SVP of HR and Chief Ethics Officer of NVR. He started his career with Price Waterhouse in Washington, DC and Calgary, Alberta, rising to Audit Senior Manager. A CPA, Mr. Malesardi is a graduate of Washington and Lee University with a B.S. in Business Administration and Accounting. He is a member of the AICPA and VSCPA, the Tech CFO Network of the Greater Washington Area, and has served as the chapter president and a regional board member of Financial Executives International.

Mr. Kent, our Director of Capital Markets, joined Gladstone in February, 2017 as a Managing Director focused on fundraising. Mr. Kent spent more than 17 years as an investment banker with experience in capital markets advisory and public and private capital raising for companies.

Prior to joining Gladstone, Mr. Kent was a Managing Director in Equity Capital Markets at Macquarie Capital in New York, where he focused on equity origination across multiple sectors. Prior to Macquarie, he co-led the Equity Capital Markets Group at Nomura Securities. Mr. Kent started his career at UBS, where he worked in both private placements and public equity capital markets during his 11 years with the investment bank.

John earned his MBA from the Darden School of Business at the University of Virginia and his BS in Business Administration from the University of New Hampshire.

Mr. LiCalsi, our General Counsel and Secretary, has been General Counsel of all of the Gladstone Companies since October 2009 and Secretary since October 2012. He was appointed President of Gladstone Administration in July 2013 and Executive Vice President of Administration of Gladstone Management Corporation in June 2020.  A graduate of the George Mason University School of Law, where he served as Editor-in-Chief of the George Mason Law Review from 2004-2005. Mr. LiCalsi is currently a member of the Virginia State Bar and District of Columbia Bar. Before joining the Gladstone Companies, Mr. LiCalsi served as an Associate Attorney in the Washington, D.C. office of Baker Botts L.L.P., a multinational law firm. From 1996 to 2004, Mr. LiCalsi held various positions at TD Waterhouse Investor Services, Inc. (currently TD Ameritrade, Inc.), including those of regional and national vice president. Mr. LiCalsi currently holds his series 7 and 24 licenses at our affiliated broker-dealer, Gladstone Securities, LLC. Prior to his tenure in the financial services industry, Mr. LiCalsi graduated from Rutgers College, with a BA in History.

Mr. Dellafiora, our Chief Compliance Officer and AML Officer, joined Gladstone in September 2007 as Chief Compliance Officer. Previously, Mr. Dellafiora held management roles in regulatory compliance, financial and operational risk management, financial reporting, and enterprise data management with Fannie Mae. Prior to that he lead attestation engagements for BDO Seidman where he worked on a diverse set of client industries. Mr. Dellafiora has also provided strategic and financial services for an alternative energy developer. Mr. Dellafiora is a CPA in the Commonwealth of Virginia with a BBA in Accountancy from the University of Notre Dame and a MBA from the University of Maryland’s Smith School of Business.

Mr. Beckhorn, our Assistant Treasurer, joined Gladstone in January 2013.  He also serves as Treasurer of Gladstone Commercial and Gladstone Land and Assistant Treasurer of Gladstone Capital and Gladstone Investment; his focus is debt finance.

Jay has 26 years of real estate finance experience.  Prior to joining Gladstone, he was a Regional Director with Heavenrich & Co., an M&A group that serves the senior’s housing industry. He helped the firm’s clients recapitalize their companies by arranging joint ventures with private equity groups, sale lease-back transactions with REITs and loans from banks and agencies.  Before Heavenrich, Mr. Beckhorn served as a Senior Vice President with Sunrise Senior Living where he secured debt financing to support the company’s development, acquisition, and joint venture activities.  Additionally, he worked for the Riggs Bank in a variety of real estate related capacities including Managing Director and Senior Asset Manager for the Multi-Employer Property Trust.  He started his real estate career with Kettler, a Washington, D.C. area real estate developer.

Jay earned an MBA from Duke University’s Fuqua School of Business and a BA from Colgate University.

Ms. Gerkis, our Director of Investor Relations and ESG, joined Gladstone in October 2022 as Director of Investor Relations and ESG of all of the Gladstone Companies. Prior to joining Gladstone, Ms. Gerkis worked as an investor and asset management specialist focusing on infrastructure private equity at IFM Investors and as an investment risk analyst at BlackRock.  She also completed a Fulbright fellowship in Taiwan.  Ms. Gerkis received her MBA from Harvard Business School and a BA in Mathematics and Chinese from Williams College.

Fund Materials

Gladstone Alternative Income Fund is only available through participating Broker/Dealers and Registered Investment Advisers. If you are interested in learning whether alternative investments are suitable for your investment needs, please contact your financial professional.

Contact Us

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Gladstone Securities: 703-287-5900

Toll Free: 833-849-5993

Email: galt.interval.fund@gladstone.com