As an investment company focused on small and mid-sized private businesses, Gladstone Investment Corporation offers exposure to potentially high-growth opportunities. The company's equity-type investments allow it to participate in the upside of these companies' success. Additionally, Gladstone's portfolio is diversified across various industries, mitigating concentration risks.

However, investing in smaller private companies comes with inherent risks. These businesses often have limited operational histories, untested business models, and may face challenges in securing financing or navigating market fluctuations. Moreover, private equity investments are typically less liquid than publicly traded securities, making it more difficult for Gladstone to exit positions quickly if needed.