Great Elm Capital Corp. (GECC) reported significant financial performance for the six months ending June 30, 2025, with total investment income reaching $26.8 million, a 45% increase from $18.5 million in the same period last year. The company’s net investment income also rose to $10.5 million, or $0.91 per share, compared to $6.3 million, or $0.69 per share, in the prior year. This growth was primarily driven by increased interest and dividend income, which amounted to $15.9 million and $9.8 million, respectively, reflecting the expansion of GECC's investment portfolio.
In terms of operational changes, GECC has made strategic moves including the formation of a joint venture, CLO Formation JV, LLC, in April 2024, aimed at investing in collateralized loan obligations (CLOs). Additionally, the company contributed investments to its subsidiary, Great Elm Specialty Finance, LLC (GESF), in September 2023, which is expected to enhance revenue and cost synergies across its specialty finance operations. As of June 30, 2025, GECC's total investments at fair value increased to $403.3 million, up from $332.7 million at the end of 2024.
The company’s investment portfolio has diversified, with a notable increase in short-term investments, which accounted for $68.2 million, or 16.9% of total investments, compared to just $8.4 million at the end of 2024. GECC's debt investment portfolio also expanded, with 56 debt instruments across 44 companies valued at approximately $221.2 million. The average yield on these debt investments was reported at 12.54%. The company’s asset coverage ratio stood at 169.5%, indicating compliance with regulatory requirements.
In terms of market performance, GECC's net asset value (NAV) per share increased to $12.10 as of June 30, 2025, compared to $11.79 at the end of 2024. The company declared distributions of $0.37 per share for the quarter ending September 30, 2025, reflecting a commitment to return value to shareholders. Looking ahead, GECC anticipates continued growth in investment income, supported by its strategic initiatives and a favorable market environment, although it remains cautious of potential fluctuations in interest rates and market conditions that could impact its operations.
About Great Elm Capital Corp.
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