Houlihan Lokey Advises Nth Degree

Houlihan Lokey is pleased to announce that Nth Degree, Inc., a portfolio company of Gladstone Investment Corporation (NASDAQ: GAIN) and Capitala Finance Corp. (NASDAQ: CPTA), has been acquired by MSouth Equity Partners, LLC. The transaction closed on December 3, 2019.

Nth Degree is a market-leading provider of global experiential marketing, exhibit management, and event services to a diverse client base of more than 1,500 companies (including 67 of the Fortune 100 firms). The company is the gold standard in the industry, boasting a rich portfolio of event and trade show solutions that are supported by a tight-knit company culture and a unique set of technology offerings that serve as the basis for client experiential marketing programs. Headquartered in Duluth, Georgia, Nth Degree has been in operation since 1979.

Founded in 2007, MSouth Equity Partners is a private equity investment firm that provides equity capital and expertise to support management teams in acquisitions and recapitalizations of lower-middle-market companies typically valued between $25 million and $200 million. Based in Atlanta, MSouth manages $2.2 billion across four funds and invests primarily in the Southern United States with a consistent focus on management buyouts of companies in sectors where it has significant investment, management, and transactional experience.

Gladstone Investment Corporation is a publicly traded business development company that seeks to make secured debt and equity investments in lower-middle-market businesses in the United States in connection with acquisitions, changes in control, and recapitalizations.

Capitala Finance Corp. is a business development company that invests primarily in first and second lien loans, subordinated debt and, to a lesser extent, equity securities issued by lower-middle-market companies. The company is managed by Capitala Investment Advisors, LLC.

Houlihan Lokey was retained as the exclusive financial advisor to Nth Degree and assisted in the initiation, negotiation, and completion of the sale transaction on behalf of the company. The transaction highlights Houlihan Lokey's knowledge and experience in the broader marketing services sector.