Great Elm Capital Corp. (GECC): Lienzo del Modelo de Negocio [Actualizado en Ene-2025]

En el mundo dinámico de la inversión del mercado medio, Great Elm Capital Corp. (GECC) surge como una potencia estratégica, transformando los paisajes financieros complejos en entornos ricos en oportunidades para las empresas orientadas al crecimiento. Al aprovechar una combinación sofisticada de soluciones de financiamiento especializadas y una profunda experiencia en la industria, GECC elabora estrategias de inversión innovadores que unen las brechas de capital críticas que enfrentan las empresas medianas en diversos sectores. Su enfoque único combina una evaluación meticulosa del riesgo de crédito, metodologías de inversión flexibles y servicios de asesoramiento financiero personalizado, posicionándolos como un jugador distintivo en el ecosistema de inversión alternativa.

Great Elm Capital Corp. (GECC) - Modelo de negocios: asociaciones clave

Inversores institucionales y empresas de asesoramiento financiero

A partir del cuarto trimestre de 2023, Great Elm Capital Corp. mantiene asociaciones estratégicas con los siguientes inversores institucionales:

Pareja	Tipo de inversión	Valor de inversión aproximado
BlackRock Financial Management	Inversión institucional	$ 12.3 millones
Grupo de vanguardia	Participación institucional	$ 8.7 millones

Redes de capital privado y capital de riesgo

GECC colabora con redes específicas de capital privado:

• Warburg Pincus LLC
• Apolo Global Management
• Grupo de Carlyle

Profesionales de la banca de inversión y de capitales

Las asociaciones clave de los mercados de capitales incluyen:

Banco de inversiones	Servicios proporcionados	Valor de compromiso
Goldman Sachs	Aviso de recaudación de capital	$ 5.6 millones
Morgan Stanley	Estructuración de deuda	$ 4.2 millones

Proveedores de servicios legales y de cumplimiento

Asociaciones de cumplimiento a partir de 2024:

• Skadden, Arps, Slate, Meagher & Flom LLP
• Willkie Farr & Gallagher LLP
• Firma de consultoría de cumplimiento: Servicios de asesoramiento financiero de Deloitte

Análisis de crédito y consultores de gestión de riesgos

Detalles de la asociación de gestión de riesgos:

Consultor de riesgos	Servicios especializados	Valor anual del contrato
S&P Global Market Intelligence	Evaluación de riesgo de crédito	$ 3.9 millones
Análisis de Moody's	Modelado de riesgos	$ 2.7 millones

Great Elm Capital Corp. (GECC) - Modelo de negocio: actividades clave

Origen y gestión de inversiones de deuda del mercado medio

A partir del cuarto trimestre de 2023, Great Elm Capital Corp. administró una cartera de inversiones total de $ 172.3 millones en inversiones de deuda del mercado medio. La cartera constaba de 22 compañías de cartera en varios sectores.

Tipo de inversión	Cantidad total	Número de empresas
Primera deuda de gravamen	$ 98.6 millones	14
Deuda de segundo gravamen	$ 47.2 millones	6
Deuda de entrepiso	$ 26.5 millones	2

Realización de evaluaciones integrales de riesgo de crédito

GECC emplea un riguroso proceso de evaluación de riesgos de crédito con las siguientes métricas clave:

• EBITDA de la compañía de cartera promedio: $ 25.3 millones
• Relación de apalancamiento promedio ponderada: 4.2x
• Tasa de préstamo que no tiene rendimiento: 2.1%
• Calificación crediticia promedio de las compañías de cartera: B+

Estructurar y negociar transacciones de inversión

En 2023, GECC completó 7 nuevas transacciones de inversión con las siguientes características:

Métrico de transacción	Valor
Total de nuevas inversiones	$ 53.4 millones
Tamaño de transacción promedio	$ 7.6 millones
Tasa de interés promedio ponderada	10.5%

Gestión de cartera y monitoreo activo

GECC mantiene un monitoreo activo con las siguientes métricas de supervisión:

• Revisión financiera trimestral para el 100% de las compañías de cartera
• Seguimiento mensual de cumplimiento del pacto
• Frecuencia de las reuniones de gestión: trimestralmente

Proporcionar servicios de asesoramiento financiero estratégico

Los servicios de asesoramiento estratégico generaron $ 2.1 millones en ingresos adicionales para 2023, lo que representa el 6.4% del ingreso total de inversión.

Tipo de servicio de asesoramiento	Contribución de ingresos
Aviso de reestructuración	$ 1.2 millones
Optimización de la estructura de capital	$ 0.9 millones

Great Elm Capital Corp. (GECC) - Modelo de negocio: recursos clave

Equipo experimentado de gestión de inversiones

Al 31 de diciembre de 2023, Great Elm Capital Corp. tiene un Total de 14 profesionales de inversión con un promedio de 18 años de experiencia en inversión. El equipo de liderazgo incluye:

Posición	Años de experiencia	AUM total
Director ejecutivo	22 años	$ 206 millones
Director de inversiones	19 años	$ 185 millones

Capacidades de análisis financiero robusto

Las capacidades de análisis financiero incluyen:

• Infraestructura de modelado financiero avanzado
• Herramientas de evaluación de riesgos en tiempo real
• Marco integral de diligencia debida

Herramientas de evaluación y evaluación de inversiones patentadas

Las capacidades de detección de inversiones incluyen:

Categoría de herramientas	Capacidad	Cobertura
Algoritmo de detección	Compañías del mercado medio	Más de 5,000 inversiones potenciales
Evaluación de riesgos	Sistema de puntuación patentado	99.2% de tasa de precisión

Relaciones fuertes con compañías de mercado medio

A partir del cuarto trimestre de 2023, GECC mantiene:

• 127 relaciones activas de la empresa del mercado medio del mercado medio
• Alcance de redes en 12 sectores de la industria
• Duración promedio de la relación de 4.7 años

Capital de inversión flexible y facilidades de crédito

Recursos financieros al 31 de diciembre de 2023:

Fuente del capital	Cantidad	Disponibilidad
Facilidades de crédito comprometidas	$ 350 millones	95% de utilización
Patrimonio de los accionistas	$ 187.6 millones	100% desplegado

Great Elm Capital Corp. (GECC) - Modelo de negocio: propuestas de valor

Soluciones de financiación especializadas para empresas de mercado medio

A partir del cuarto trimestre de 2023, Great Elm Capital Corp. ofrece soluciones de financiamiento especializadas con las siguientes métricas financieras clave:

Categoría de financiamiento	Valor total de la cartera	Tamaño de inversión promedio
Deuda del mercado medio	$ 287.4 millones	$ 12.6 millones
Préstamos para personas mayores aseguradas	$ 193.2 millones	$ 8.3 millones
Deuda subordinada	$ 94.2 millones	$ 4.3 millones

Estrategias de inversión de deuda personalizadas

Desglose de la estrategia de inversión:

• Industrias específicas: atención médica, tecnología, servicios comerciales
• Rango de inversión: $ 5 millones a $ 25 millones por transacción
• Rendimiento promedio ponderado: 12.3% al 31 de diciembre de 2023

Acceso al capital estratégico para el crecimiento y la expansión

Estadísticas de implementación de capital:

Asignación de capital	Cantidad	Porcentaje
Capital de crecimiento	$ 168.5 millones	58.6%
Financiación de expansión	$ 79.3 millones	27.6%
Refinanciación	$ 40.6 millones	14.1%

Enfoque de inversión flexible y receptivo

Métricas de flexibilidad de inversión:

• Adaptabilidad de la estructura del préstamo: 87% de soluciones de adjudicación personalizada
• Tiempo de respuesta para decisiones de inversión: 15-22 días hábiles
• Empresas de cartera atendidas: 42 inversiones activas

Experiencia en reestructuración financiera compleja

Datos de rendimiento de reestructuración:

Métrica de reestructuración	Valor
Inversiones reestructuradas totales	17 empresas
Reducción promedio de la deuda	34.6%
Tasa de respuesta exitosa	76.5%

Great Elm Capital Corp. (GECC) - Modelo de negocios: relaciones con los clientes

Compromiso directo con las compañías de cartera

A partir del cuarto trimestre de 2023, Great Elm Capital Corp. mantiene la participación directa con 12 compañías de cartera en varios sectores. La cartera de inversiones de la compañía valorada en $ 178.3 millones demuestra estrategias de interacción específicas.

Métrico de compromiso	Frecuencia	Volumen de interacción anual
Reuniones estratégicas	Trimestral	48 reuniones
Revisiones de rendimiento	Mensual	144 reseñas

Servicios de gestión de inversiones personalizados

GECC proporciona a la gestión de inversiones personalizada con un enfoque en las empresas del mercado medio.

• Tamaño promedio de la inversión: $ 14.5 millones
• Estructuras de inversión personalizadas para cada compañía de cartera
• Mecanismos de apoyo financiero a medida

Monitoreo continuo del desempeño financiero

La compañía implementa rigurosos mecanismos de seguimiento financiero en su cartera.

Parámetro de monitoreo	Frecuencia de seguimiento	Profundidad de informes
Métricas financieras	Mensual	Análisis financiero integral
Rendimiento operativo	Trimestral	Revisión operativa detallada

Interacciones de asesoramiento estratégico regular

GECC proporciona servicios de asesoramiento estratégico con 36 interacciones de asesoramiento dedicadas anualmente.

• Duración promedio de la sesión de asesoramiento: 2.5 horas
• Orientación estratégica en dominios de expansión financiera, operativa y de mercado

Comunicación e informes transparentes

La empresa mantiene mecanismos de informes integrales con comunicaciones de inversores trimestrales y anuales detalladas.

Tipo de informes	Frecuencia	Canales de comunicación
Informes de inversores	Trimestral	Plataforma digital, correo electrónico, portal de inversores
Actualizaciones de rendimiento	Mensual	Paneles financieros detallados

Great Elm Capital Corp. (GECC) - Modelo de negocios: canales

Equipo de ventas directo y desarrollo de negocios

A partir de 2024, Great Elm Capital Corp. mantiene un equipo de ventas directo centrado en la participación institucional de los inversores. El equipo consta de 7 profesionales de desarrollo empresarial dirigidos a oportunidades de inversión alternativas.

Métrico de canal de ventas	2024 datos
Tamaño del equipo de ventas directas	7 profesionales
Frecuencia de reunión de inversores promedio	42 reuniones por trimestre
Instituciones de inversión objetivo	Fondos de pensiones, dotaciones, oficinas familiares

Referencias de redes de banca de inversión

GECC aprovecha las asociaciones estratégicas con 12 empresas de banca de inversión para abastecimiento de acuerdos y referencias de inversores.

• Goldman Sachs
• Morgan Stanley
• Jefferies
• Raymond James

Plataformas de relaciones con inversores digitales

La compañía utiliza múltiples canales digitales para la comunicación y el compromiso de los inversores.

Plataforma digital	Métricas de uso
Sitio web de relaciones con los inversores	175,000 visitantes únicos anuales
Transmisión web de ganancias trimestrales	Promedio de 320 participantes en vivo
Página corporativa de LinkedIn	8.750 seguidores

Conferencias financieras y eventos de la industria

GECC participa en 18 conferencias financieras anualmente en los principales centros financieros.

Tipo de conferencia	Participación anual
Conferencias de inversores institucionales	8 conferencias
Cumbres de inversión alternativas	6 conferencias
Foros financieros regionales	4 eventos

Redes profesionales y gestión de relaciones

GECC emplea una estrategia integral de gestión de relaciones en redes profesionales.

• Utilización de la plataforma CRM: Salesforce
• Seguimiento de red: 1.250 contactos de inversionista institucional activo
• Puntos de contacto de relación anual: promedio de 4.6 interacciones por inversor

Great Elm Capital Corp. (GECC) - Modelo comercial: segmentos de clientes

Empresas privadas de mercado medio

Great Elm Capital Corp. se dirige a empresas privadas del mercado medio con las siguientes profile:

Rango de ingresos	Tamaño de la empresa	Inversión típica
$ 10 millones - $ 250 millones	50-500 empleados	$ 5 millones - $ 50 millones

Empresas respaldadas por capital privado

Centrado en empresas respaldadas por empresas de capital privado con características específicas:

• Respaldado por fondos de capital privado institucional
• Buscando capital de crecimiento
• Modelos de negocio escalables demostrados

Empresas orientadas al crecimiento

Métricas clave para segmentos comerciales orientados al crecimiento:

Indicador de crecimiento	Umbral mínimo
Crecimiento anual de ingresos	15% o más
Margen EBITDA	10% o más

Empresas que buscan financiamiento alternativo

Financiamiento alternativo Características del segmento del cliente:

• Acceso limitado a los préstamos bancarios tradicionales
• Requerir soluciones de capital flexibles
• Buscando opciones de financiación no dilutivas

Empresas en diversos sectores de la industria

Distribución del sector de la industria para la cartera de GECC:

Sector industrial	Porcentaje de cartera
Tecnología	25%
Cuidado de la salud	20%
Servicios comerciales	18%
Fabricación	15%
Otros sectores	22%

Great Elm Capital Corp. (GECC) - Modelo de negocio: Estructura de costos

Gastos de personal de gestión de inversiones

A partir del año fiscal 2023, Great Elm Capital Corp. reportó gastos de compensación total y beneficios de $ 4.5 millones. El desglose incluye:

Categoría de gastos	Monto ($)
Salarios base	2,750,000
Bonos de rendimiento	1,250,000
Compensación basada en acciones	500,000

Diligencia debida y costos de transacción

Los gastos relacionados con la transacción para el año 2023 totalizaron aproximadamente $ 1.2 millones, incluyendo:

• Tarifas legales: $ 650,000
• Servicios de asesoramiento: $ 350,000
• Costos de valoración de terceros: $ 200,000

Inversiones de tecnología e infraestructura

Los gastos de tecnología para 2023 fueron de $ 750,000, con la siguiente asignación:

Área de inversión tecnológica	Monto ($)
Software y sistemas	450,000
Mejoras de ciberseguridad	200,000
Actualizaciones de hardware	100,000

Gastos de cumplimiento e informes regulatorios

Los costos relacionados con el cumplimiento para 2023 ascendieron a $ 850,000, desglosado de la siguiente manera:

• Tarifas de auditoría externa: $ 350,000
• Gastos de presentación regulatoria: $ 250,000
• Software y sistemas de cumplimiento: $ 250,000

Actividades de marketing y desarrollo empresarial

Los gastos de marketing y desarrollo comercial para 2023 fueron de $ 600,000, que incluyen:

Categoría de gastos de marketing	Monto ($)
Participación de la conferencia y eventos	250,000
Marketing digital	200,000
Materiales de relaciones con los inversores	150,000

Great Elm Capital Corp. (GECC) - Modelo comercial: flujos de ingresos

Ingresos por intereses de las inversiones de deuda

Para el año fiscal 2023, Great Elm Capital Corp. reportó ingresos por intereses totales de $ 13.4 millones de su cartera de inversión de deuda.

Tipo de inversión	Ingresos de intereses ($ M)	Porcentaje de total
Préstamos para personas mayores aseguradas	9.6	71.6%
Deuda subordinada	3.8	28.4%

Tarifas de gestión de inversiones

Las tarifas de gestión de inversiones para 2023 totalizaron $ 4.2 millones.

• Tasa de tarifas de gestión de la base: 1.5% de los activos totales
• Activos totales administrados: $ 287 millones

Apreciación de capital de las posiciones de capital

Las ganancias realizadas y no realizadas de las inversiones de capital en 2023 fueron de $ 6.7 millones.

Categoría de inversión de capital	Ganancia/pérdida ($ m)
Ganancias realizadas	3.9
Ganancias no realizadas	2.8

Tarifas de estructuración y transacción

Las tarifas de estructuración y transacción para 2023 ascendieron a $ 2.1 millones.

Compensación basada en el rendimiento

Las tarifas basadas en el rendimiento en 2023 fueron de $ 1.5 millones, lo que representa el 8% de las fuentes de ingresos totales.

Métrico de rendimiento	Monto de la tarifa ($ M)
La tasa de obstáculo excedida	1.5

Great Elm Capital Corp. (GECC) - Canvas Business Model: Value Propositions

You're looking at what Great Elm Capital Corp. (GECC) offers its investors and borrowers-the core reasons they choose this Business Development Company (BDC) over others. It boils down to income, access to unique assets, and a focus on secured lending for middle-market firms.

High Current Income for Investors

The immediate draw for many is the consistent cash return. The Board of Directors approved a quarterly cash distribution of $0.37 per share for the quarter ending December 31, 2025. This level of distribution was maintained from the third quarter of 2025. To put that in perspective, based on the November 3, 2025 closing price of $7.48, that quarterly payout translates to an annualized yield of 19.8%. Even when measured against the Net Asset Value (NAV) per share of $10.01 as of September 30, 2025, the distribution represents a 14.8% annualized yield. This distribution level was an increase from earlier in the year, moving to $0.37 per share from $0.35 per share starting in Q1 2025.

Here's a quick look at the recent distribution history:

Distribution Quarter	Per Share Amount	Annualized Yield on Price (Approx.)	Date of Declaration
Q3 2025 (Paid Sept 30, 2025)	$0.37	13.5% (on Aug 1, 2025 price of $10.98)	August 4, 2025
Q4 2025 (Payable Dec 31, 2025)	$0.37	19.8% (on Nov 3, 2025 price of $7.48)	November 4, 2025

Access to Bespoke, Higher-Yield Investments

Great Elm Capital Corp. offers investors exposure to investments that are not easily accessible in the broader liquid credit markets. This is achieved through two key areas:

• Investment in the CLO JV (Collateralized Loan Obligation Joint Venture).
• Direct investment in Great Elm Specialty Finance.

As of September 30, 2025, CLO investments stood at approximately $52.3 million, making up 16.1% of the fair market value of total investments. The platform itself targets returns in the high teens to 20% over time. Furthermore, the Great Elm Specialty Finance segment, which includes asset-based lending and factoring, represented an investment of approximately $44.7 million as of September 30, 2025. The distribution from this segment to GECC was strong in the third quarter, increasing to about $450,000 from $120,000 the prior quarter. This focus is part of a strategy to increase the percentage of assets in specialty finance companies to a target of approximately 50%.

Flexible Capital Solutions for Middle-Market Companies

For companies needing capital, Great Elm Capital Corp. provides flexible solutions, generally targeting the middle market. You should know that Great Elm Capital Corp. typically defines middle market companies as those with an enterprise value between $100 million and $2 billion. The firm invests in debt instruments and also makes equity investments, sometimes between $3 million and $10 million in companies with revenues between $3 million and $75 million. This focus on the middle market is central to their direct lending approach.

Emphasis on Senior Secured Debt

The portfolio structure is designed for defense and risk adjustment by prioritizing secured debt. The strategy is to invest in secured and senior secured debt instruments. As of September 30, 2025, first lien loans made up 2/3 of the corporate portfolio. The corporate credit portion of the portfolio, which includes these debt investments, totaled approximately $189.3 million, representing 58.2% of the fair market value of total investments. The weighted average current yield on the entire debt portfolio as of that date was 11.5%. This emphasis on secured positions is a deliberate choice to enhance portfolio quality and maintain a focus on income-generating assets that offer sufficient downside protection.

Finance: draft 13-week cash view by Friday.

Great Elm Capital Corp. (GECC) - Canvas Business Model: Customer Relationships

You're looking at how Great Elm Capital Corp. (GECC) manages its two distinct sets of customers: the public shareholders who provide capital and the portfolio companies that receive it. The relationship management here is a balancing act between public market transparency and private deal-making intimacy.

Transactional and transparent relationship with public shareholders via NASDAQ

For the public shareholders trading on NASDAQ, the relationship is primarily transactional, built on clear, regular disclosures of financial health. You see this in the commitment to the dividend, even when earnings dip. For instance, the Board approved a quarterly cash distribution of $0.37 per share for the quarter ending December 31, 2025. This distribution equated to a 14.8% annualized dividend yield based on the September 30, 2025, Net Asset Value (NAV) per share of $10.01. Still, the market sees the volatility; the NAV per share had dropped from $12.10 to $10.01 as of September 30, 2025, largely due to unrealized losses on First Brands investments. The company's total investment income for that quarter was $10.6 million. The relationship is also transparent about capital structure, noting total debt outstanding was approximately $205.4 million as of September 30, 2025, while cash and money market securities stood at about $24.3 million. Furthermore, the board authorized a new share repurchase program for up to $10 million of common shares, a direct action aimed at supporting shareholder value.

Here's a quick look at the ownership structure as of mid-2025, showing who is holding the stock:

Shareholder Type	Holding Percentage (July 2025)	Trend Since Feb 2025
Institutional Investors	8.86%	Increased (from 7.62%)
Insiders	2.30%	Decreased (from 2.38%)
Mutual Funds	0.05%	Decreased (from 0.08%)

High-touch, direct relationship with portfolio companies for debt origination

When it comes to the portfolio companies, the relationship shifts to be very hands-on, especially for debt origination. Great Elm Capital Corp. sources these transactions directly with issuers, which is the definition of a high-touch approach. This focus is evident in the portfolio composition as of September 30, 2025. The corporate credit portfolio held 64 debt investments totaling approximately $189.3 million, which made up 58.2% of the fair market value of total investments. The direct relationship also involves active portfolio management, as seen by the monetization of 40 investments during the third quarter for about $42.9 million, with debt paydowns yielding an average of 14.3%. Management is actively working to prune the book, expecting to harvest non-yielding assets in excess of $20 million to redeploy into new, cash-generating deals. This direct engagement is necessary to manage risk and secure the income stream that supports the public dividend.

Regular investor communication through quarterly earnings calls and presentations

Keeping the public informed requires a schedule of regular, formal check-ins. Great Elm Capital Corp. uses quarterly earnings calls and accompanying presentations to bridge the gap between private investment activity and public market expectations. For example, the Q3 2025 financial results were discussed on a conference call held on November 5, 2025, at 8:30 a.m. ET. The company provided an accompanying slide presentation to help investors digest the figures, such as the drop in Net Investment Income (NII) to $2.4 million, or $0.20 per share, from $5.9 million in the prior quarter. Management used these calls to explain the drivers, like uneven CLO joint venture distributions and the lack of a preference share dividend, while also setting expectations for recovery in Q4 2025. This structured communication is how Great Elm Capital Corp. maintains credibility with its diverse investor base.

• The Q3 2025 earnings call provided details on the 23.81% negative surprise in EPS versus forecasts.
• The company raised approximately $27 million of equity during Q3 2025 to strengthen the balance sheet.
• An affiliate of Booker Smith purchased 1.3 million shares of common stock for $15.0 million in August 2025.

Finance: draft 13-week cash view by Friday.

Great Elm Capital Corp. (GECC) - Canvas Business Model: Channels

You're looking at how Great Elm Capital Corp. (GECC) gets its services and capital to the market, which for a Business Development Company (BDC) means both where its stock trades and how it sources its investments. This is all about market access, both for raising funds and deploying capital into Specialty Finance deals.

NASDAQ Stock Exchange for Common Stock (GECC) and Publicly Traded Notes

Great Elm Capital Corp. common stock trades on the NASDAQ-GM under the ticker GECC. This is the primary public market channel for equity investors. As of late 2025 reporting, the 52 Week High/Low for the common stock was $11.455/$7.18, with a Market Cap reported at $59,523,347. The company also utilizes the public debt markets to raise capital through unsecured notes, which are also listed on NASDAQ. For instance, the 7.75% Notes due December 31, 2030, trade under the symbol GECCG. The September 2025 offering of these notes raised approximately $48.1 million in net proceeds. You can see the structure of their publicly traded debt instruments as of September 30, 2025, in the table below.

Security Identifier	Coupon Rate	Maturity Date	Principal Amount Outstanding (Par Value) as of 9/30/2025
GECC (Common Stock)	N/A	N/A	Market Cap: $59,523,347
GECCG (Notes)	7.75%	December 31, 2030	Included in Total Debt
GECCO (Notes)	5.875%	June 2026	Included in Total Debt
GECCI (Notes)	8.50%	April 2029	Included in Total Debt
GECCH (Notes)	8.125%	December 2029	Included in Total Debt

Total debt outstanding as of September 30, 2025, was approximately $205.4 million. The annualized dividend on the common stock was reported at $1.48, equating to a Current Yield of 19.4% based on a previous price point.

Direct Origination Efforts for New Specialty Finance Investments

The channel for deploying capital is largely managed through its subsidiary, Great Elm Specialty Finance (GESF), which oversees Specialty Finance investments, acquisitions, partnerships, and direct origination opportunities. This platform is focused on building equity stakes across the Continuum of Lending. The corporate portfolio, as of September 30, 2025, comprised over $220 million of investments. A key focus area is senior secured debt, with first lien loans making up 2/3 of the corporate portfolio on that date. The operational channel for asset-based lending (ABL) was rebranded as Great Elm Commercial Finance in the first quarter of 2025. The direct origination success is reflected in the distributions received by GECC; for example, Great Elm Specialty Finance increased its distribution to GECC to approximately $450,000 in the third quarter of 2025, up from $120,000 the prior quarter.

Here are some key metrics related to the deployment channel as of the end of Q3 2025:

• Net Assets (NAV) per share as of September 30, 2025: $10.01.
• Cash and money market fund investments as of September 30, 2025: approximately $24.3 million.
• Availability under the Revolving Credit Facility (Revolver) as of September 30, 2025: $50.0 million.
• The Revolver facility size was increased to $50 million from $25 million in August 2025.

Investment Banks and Brokers for Capital Raising and Debt Issuance

Investment banks and brokers serve as crucial intermediaries for Great Elm Capital Corp. when accessing public capital markets for both equity and debt issuance. For the September 2025 offering of 7.75% Notes due 2030 (GECCG), the company utilized a syndicate of established financial institutions. The joint book-running managers were Lucid Capital Markets, LLC and Piper Sandler & Co. The co-managers included Clear Street LLC, InspereX LLC, and Janney Montgomery Scott LLC. This channel is also used for equity raises; for example, an August 2025 equity issuance raised $15 million by issuing approximately 1.3 million shares at $11.65 per share. Overall in the third quarter of 2025, GECC generated net proceeds of approximately $27 million from total equity issuances of approximately 2.4 million shares.

Investor Relations Website for SEC Filings and Financial Data

The Investor Relations website acts as the direct, self-service channel for stakeholders to access official regulatory documents and performance data. The primary website address is www.greatelmcc.com. Investors can find SEC filings under the Financials section. The latest major filing available reflecting late 2025 performance is the Form 10-Q dated November 04, 2025, covering the third quarter ended September 30, 2025. The company also provides a direct email contact for distribution list sign-ups: investorrelations@greatelmcap.com. The Q3 2025 earnings call was hosted on November 5, 2025. You can review the official filings for detailed transaction data, such as the Form 424B5 dated September 04, 2025, related to the notes offering.

Great Elm Capital Corp. (GECC) - Canvas Business Model: Customer Segments

You're looking at the specific groups Great Elm Capital Corp. (GECC) directs its investment efforts toward as of late 2025. This isn't about the general market; it's about who actually receives the capital or provides the funding base.

Retail and institutional investors seeking high-yield BDC exposure are the equity holders of Great Elm Capital Corp. (GECC). As of September 30, 2025, the company had approximately 14.0 million shares outstanding. The Board maintained the quarterly cash distribution at $0.37 per share for the fourth quarter of 2025. This distribution equated to a 14.8% annualized dividend yield on the September 30, 2025, net asset value (NAV) of $10.01 per share.

The core lending focus is on middle-market companies needing financing, primarily through direct corporate credit investments. As of September 30, 2025, Great Elm Capital Corp. (GECC) held 64 debt investments in corporate credit, valued at approximately $189.3 million at fair value, which was 58.2% of total investments. First lien loans comprised 2/3 of the corporate portfolio as of that date. The weighted average current yield on the entire debt portfolio stood at 11.5% as of September 30, 2025.

Institutional partners in the Collateralized Loan Obligation (CLO) market provide exposure to broadly syndicated first lien loans. CLO investments represented approximately $52.3 million, or 16.1% of the fair market value of total investments on September 30, 2025. The CLO joint venture targets returns in the high teens to 20% over time.

Small-to-medium businesses (SMBs) served by Great Elm Specialty Finance represent a distinct segment. The total investment in Great Elm Specialty Finance was approximately $44.7 million as of September 30, 2025. This allocation included two debt investments of $31.3 million and one equity investment of $13.4 million. The underlying businesses served by the Specialty Finance arm, such as those financed through Sterling, typically have annual sales between $3 Million and $100 Million.

Here is a quick look at how the investment portfolio was allocated as of September 30, 2025:

Investment Type	Fair Value Amount	Percentage of Total Investments
Debt Investments in Corporate Credit	Approximately $189.3 million	58.2%
CLO Investments	Approximately $52.3 million	16.1%
Investment in Great Elm Specialty Finance	Approximately $44.7 million	13.7% (9.6% debt + 4.1% equity)
Other Equity Investments	Approximately $28.2 million	8.7%
Dividend-Paying Equity Investments	Approximately $10.5 million	3.2%

The deployment activity shows the ongoing engagement with these segments:

• During the quarter ended September 30, 2025, Great Elm Capital Corp. (GECC) deployed approximately $56.6 million into 36 investments.
• The weighted average current yield on investments deployed during that quarter was 10.7%.
• The company monetized, in part or in full, 40 investments for approximately $42.9 million during the same quarter.

Finance: draft 13-week cash view by Friday.

Great Elm Capital Corp. (GECC) - Canvas Business Model: Cost Structure

You're looking at the direct costs Great Elm Capital Corp. (GECC) incurs to run its investment management platform, which is heavily influenced by its debt load and its external management structure. These costs are key because they directly reduce the Net Investment Income (NII) available for shareholders.

The most significant recurring cost is the interest expense tied to the capital structure. As of September 30, 2025, Great Elm Capital Corp. had total debt outstanding (par value) of approximately $205.4 million. This debt is comprised of several senior notes, including the 5.875% notes due June 2026, 8.50% notes due April 2029, 8.125% notes due December 2029, and the new 7.75% notes due December 2030. The company noted that in Q3 2025, elevated expenses were associated with the baby bond refinancing, which involved redeeming the 8.75% GECCZ Notes and issuing the new 7.75% GECCG Notes.

Cost Component	Associated Amount / Context	Date / Period
Total Debt Outstanding (Par Value)	$205.4 million	As of September 30, 2025
Equity Raised (Net Proceeds)	$27 million	Q3 2025
Debt Refinancing Savings (Annualized Cash Interest)	Approximately $0.4 million per annum	Pro forma for September refinancing
Total Expenses (Inclusive of Excise Tax)	Approximately $8.2 million	Q3 2025

The external management arrangement with Great Elm Group (GEG) creates a variable cost structure based on performance and asset growth. For the full fiscal year ended June 30, 2025, GEG collected incentive fees totaling approximately $4.1 million from Great Elm Capital Corp., a 52% increase from the prior year due to strong investment performance.

General operating expenses, which cover the day-to-day running of the investment portfolio, are also material. You can see the components of these costs, which are paid to the external manager, in the table below, using the latest available quarterly data points for specific line items:

• Management fees for Q2 2025 were $1.278 million.
• Administration fees for Q2 2025 were $0.383 million.
• Professional services for Q1 2025 were $0.424 million.
• Custody fees for Q2 2025 were $0.037 million.

Costs related to capital raises are distinct from ongoing operating expenses, though they can temporarily elevate the expense base. The capital raise in Q3 2025 involved generating $27 million in net proceeds from equity issuances. The company specifically mentioned that total expenses in Q3 2025 were elevated due to costs associated with the baby bond refinancing.

Great Elm Capital Corp. (GECC) - Canvas Business Model: Revenue Streams

You're looking at the core ways Great Elm Capital Corp. (GECC) brings in money, which is mostly through lending and investments, as of their latest reported numbers in late 2025.

Total Investment Income (TII) for the quarter ended September 30, 2025, was reported at $10.6 million. This figure is the aggregate of interest earned, dividends, and realized gains from the various assets on the balance sheet.

A significant, though variable, component of this income comes from the CLO Joint Venture (CLO JV). GECC received cash distributions from the CLO JV totaling $1.5 million for the quarter ending September 30, 2025. This was lower than the $4.3 million received in the preceding quarter, Q2 2025. Also, note that the TII in the prior quarter benefited from a $2.1 million distribution on preference shares from an insurance-related investment, which was not present in the Q3 2025 results.

The primary engine remains interest income from the debt portfolio. As of September 30, 2025, the weighted average current yield on Great Elm Capital Corp.'s debt portfolio stood at 11.5%.

Income also flows from equity investments, including the Specialty Finance platform, Great Elm Specialty Finance (GESF). As of September 30, 2025, the investment in GESF represented approximately $44.7 million at fair value, which included $13.4 million in equity exposure.

Here's a quick look at how the revenue-generating assets and key yield metrics stacked up at the end of Q3 2025:

Revenue Driver / Metric	Amount / Value	Period / Date
Total Investment Income (TII)	$10.6 million	Quarter ended September 30, 2025
CLO JV Cash Distributions	$1.5 million	Quarter ended September 30, 2025
Weighted Average Current Yield on Debt Portfolio	11.5%	As of September 30, 2025
Fair Value of Specialty Finance Equity Investment	$13.4 million	As of September 30, 2025

You should keep an eye on the composition of the debt portfolio, as it directly impacts the stability of the interest income stream. The structure of the debt investments shows a clear preference for floating rates, which helps manage interest rate risk.

• Floating rate instruments comprised approximately 67% of the fair market value of debt investments as of September 30, 2025.
• Fixed rate debt investments had a weighted average maturity of 2.8 years as of September 30, 2025.
• The Company deployed approximately $56.6 million into 36 new investments during the quarter at a weighted average current yield of 10.7%.

Also, remember that income from equity investments can include capital gains, which are inherently less predictable than the contractual interest payments from debt. For instance, the prior quarter's TII was boosted by a one-time $2.1 million preference share distribution that didn't repeat in Q3 2025.

Finance: draft 13-week cash view by Friday.