Great Elm Capital Corp ( (GECC) ) has released its Q1 earnings. Here is a breakdown of the information Great Elm Capital Corp presented to its investors.
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Great Elm Capital Corp. (GECC) is an externally managed business development company that focuses on generating current income and capital appreciation through investments in debt and income-generating equity securities, including specialty finance businesses and collateralized loan obligations (CLOs).
In its first quarter of 2025 financial results, Great Elm Capital Corp. reported a significant increase in its quarterly distribution and record total investment income. The company announced a 5.7% increase in its quarterly distribution to $0.37 per share, alongside a record total investment income of $12.5 million for the quarter.
Key financial metrics for the quarter included a net investment income of $4.6 million, or $0.40 per share, which was a substantial increase from the previous quarter. This growth was primarily driven by cash distributions from the CLO Formation JV, LLC, and income from new investments. Despite a decrease in net asset value due to unrealized losses amid market volatility, the company maintained a strong asset coverage ratio of 163.8%.
Looking ahead, Great Elm Capital Corp. remains optimistic about its financial performance, with expectations for increased net investment income in the second quarter. The company plans to continue monitoring the macroeconomic environment closely and aims to deploy capital into opportunities that offer compelling risk-adjusted returns, with a focus on delivering value to shareholders.