Great Elm Capital Corp. Boosts Equity Through Strategic Investment
Great Elm Capital Corp. Boosts Equity Base
Great Elm Capital Corp. (the Company or GECC), a prominent business development company traded on NASDAQ under the ticker symbol GECC, recently made a significant move to strengthen its financial position. The company issued around 1.1 million shares at a net asset value of $12.06 per share, resulting in an impressive total of $13.2 million raised from Summit Grove Partners, LLC (SGP).
Investment from Great Elm Group Enhances Confidence
A noteworthy aspect of this capital raise is the $3.3 million investment made by its investment manager, Great Elm Group, Inc. (GEG), in SGP. This investment not only underscores GEG's commitment to the company but also aligns the interests of the investment manager with those of the shareholders, fostering a collaborative approach towards growth.
CEO Insights on Company Growth and Strategy
In his remarks, Matt Kaplan, GECC’s Chief Executive Officer, highlighted the significance of this capital raise. "We have raised nearly $50 million of equity at net asset value year-to-date, strengthening our platform for future growth and expanding our scale," Kaplan noted. Since the revitalization of the management and board in March 2022, GECC has shown remarkable growth, with its gross net asset value nearly doubling. Kaplan expressed his satisfaction with the value delivered to shareholders as the company continues to grow its portfolio and leverage its existing infrastructure.
Commitment to Credit Market Expansion
Jason Reese, CEO of GEG, reiterated the strategic commitment to enhancing their credit platform, with GECC serving as the cornerstone of these efforts. Reese expressed excitement over the progressive expansion of GECC, guided by successful frameworks established in previous capital raises.
About Great Elm Capital Corp.
Great Elm Capital Corp. operates as an externally managed business development company. The primary goal of the company is to generate current income along with capital appreciation. GECC invests in a diversified range of debt and income-generating equity securities. This includes investments in specialized finance businesses and collateralized loan obligations (CLOs), aiming to maximize returns for its stakeholders.
FAQs on Recent Developments at Great Elm Capital Corp.
What was the total amount raised by Great Elm Capital Corp.?
The company raised a total of $13.2 million by issuing approximately 1.1 million shares of common stock.
Who was involved in the recent equity transaction?
Summit Grove Partners, LLC was the purchaser of the shares, with Great Elm Group, Inc. contributing a $3.3 million investment in SGP.
What does this capital raise signify for GECC?
This capital raise strengthens GECC's financial position, increasing its ability to grow and expand its portfolio effectively.
How does the company's management view this development?
The management sees this capital infusion as a pivotal step towards enhancing shareholder value and sustaining growth in the future.
What is Great Elm Capital Corp.'s investment strategy?
GECC aims to achieve current income and capital appreciation through investments in debt securities and equity, focusing on specialty finance and CLOs.
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