Great Elm Capital Corp. - 8.125
- Market Cap (Float-Adj) (Float-adjusted market cap computed by the low-float screener — matches the screener row. May differ from the standard cap (price × all shares outstanding) reported elsewhere.)
- $343.9M
- Price
- $24.76
- % Change (Daily % change from the live per-ticker quote feed.)
- -0.16%
- Volume
- 3.5K
About
Great Elm Capital Corp. operates as a business development company (BDC), focusing its investment activities on middle-market firms. The company's expertise lies in providing capital through various loan and mezzanine debt instruments. It primarily channels funds into the debt securities of these mid-sized businesses. Great Elm Capital Corp. exhibits a strong preference for companies within the media, commercial services and supplies, healthcare, telecommunication services, and communications equipment sectors. For its equity participation, the firm typically commits between $3 million and $10 million, targeting enterprises that generate annual revenues ranging from $3 million to $75 million.
Quick stats
Shares outstanding13.9M
Computed float8.6M
Float / shares62.1%
Key info
SectorFinancial Services
IndustryAsset Management
CIK (Central Index Key — the unique ID the SEC assigns to every filer. Use it to look up the company's filings on EDGAR.)0001675033
Websitehttps://www.greatelmcc.com
AI Summary
AI-generated1/29
majormixedproxy statement
GECC: PRE 14A — proxy statement
Great Elm Capital Corp. filed a preliminary proxy for a special meeting (record date August 17, 2026; 13,889,750 shares outstanding) asking stockholders to approve a sweeping transformation: Proposal 1 would pivot the BDC away from middle-market secured lending, specialty finance and CLO investments toward a venture capital strategy focused on equity in private, venture-backed technology companies, with deal flow sourced through sub-adviser AE's venture network and proprietary AI research platform.
The proxy is explicit about the cost of the pivot: as the portfolio transitions, GECC will generate less investment income and pay lower dividends, and returns would depend on capital appreciation and liquidity events that cannot be assured. Newly disclosed risks include illiquid private investments, SAFEs that may never convert into equity ownership, and steep competition facing AI-related businesses.
Proposal 2 rewrites adviser economics with GECM by eliminating the mandatory deferral of income incentive fees, excluding Venture Investments from the income hurdle (1.75% per quarter, 7% annualized), and bifurcating the capital gains fee. Proposal 3 appoints venture firm AE as sub-adviser for 25% of GECM's management and incentive fees, stepping up to 50% once GECC deploys $75 million into AE-sourced deals; AE managed more than $700 million as of June 30, 2026.
The board unanimously recommends FOR all three proposals, which are interdependent — if any one fails, the others are withdrawn. If approved, AE co-CEO Nick Grouf joins the board as an interested director, while GECM's previously waived $3.7 million of accrued unpaid income incentive fees remain waived regardless of the vote.
Red flags
- Fundamental strategy pivot: BDC shifting from income-generating credit to illiquid venture capital equity — company states it will generate less investment income and pay lower dividends
- New Investment Management Agreement removes mandatory deferral of income incentive fees, increasing the likelihood and speed of fee payments to adviser GECM
- Sub-adviser AE to receive 25% of GECM's management and incentive fees, stepping up to 50% after the Performance Threshold (500 issuers or $75M deployed)
- Venture and SAFE investments carry risk of total loss, valuation uncertainty, illiquidity, and SAFEs may never represent equity ownership
- Affiliated-party dynamics: 100% of brokerage commissions paid to affiliate Imperial Capital; AE's Nick Grouf would join the board as an interested director
- Proposals are interdependent — all are withdrawn if any single proposal fails, and the board unanimously supports all three, limiting shareholder leverage
- Preliminary proxy contains placeholders (new independent director unnamed); final terms may change in the definitive proxy