Gladstone boosts BDC activity, opens office

Publicly traded business development company Gladstone Capital has hired a new managing director to open a Chicago office amidst the surge in BDC interest.

McLean, Virginia-based Gladstone Capital, a publicly traded business development company, has announced the hire of Robert Pierce as a managing director to head up its new Chicago office.

Pierce most recently served as a senior vice president and team leader in GE Capital’s Global Sponsor Finance unit in Chicago, working with private equity sponsors and their portfolio companies.

The new office comes amidst growing activity in the BDC marketplace. Last week, New York-based Gleacher Investment Corporation announced that it would seek $500 million from the public for senior and mezzanine debt investments in private companies. Earlier this month, Boston buyout firm Thomas H. Lee Partners indicated it is seeking $500 million for THL Investment Capital, and Los Angeles-based Gores Technology said it is seeking $250 million for Gores Investment Corporation.

Since April, a number of other US private equity firms have filed to take public BDCs, including KKR, Blackstone, Kelso/BlackRock, Evercore, Prospect Street and Porticoes. These filings follow the successful April IPO of Apollo Investment, which raised $930 million for a vehicle tied to New York private investment giant Apollo Advisors.

Gladstone Capital has capital resources of more than $235 million and provides senior term loans, senior subordinated loans and junior subordinated loans to established private businesses.