Great Elm Capital Corp (GECC) 2025 Q1 法說會逐字稿

Greetings, and welcome to the Great Elm Capital Corp first-quarter 2025 financial results call. (Operator Instructions) As a remainder, this conference is being recorded.

您好，歡迎您參加 Great Elm Capital Corp 2025 年第一季財務業績電話會議。（操作員指示）另外，本次會議正在錄製中。

It is now my pleasure to introduce your host Peter Sceusa representative of the company. Thank you. You may begin.

現在我很高興向大家介紹本公司的代表、主持人 Peter Sceusa。謝謝。你可以開始了。

Hello, and thank you, everyone, for joining us for Great Elm Capital Corp's first quarter 2025 earnings conference call. If you'd like to be added to our distribution list, you can e-mail investorrelations@greatelmcap.com or you can sign up for alerts directly on our website, www.greatelmcc.com.

大家好，感謝大家參加 Great Elm Capital Corp 2025 年第一季財報電話會議。如果您想加入我們的分發列表，您可以發送電子郵件至 investorrelations@greatelmcap.com 或直接在我們的網站 www.greatelmcc.com 上註冊接收提醒。

I'd like to note the slide presentation posted on our website accompanying today's call. The slide presentation can be found on our website under Events and Presentations. On our website, you could also find our earnings release and SEC filings. I'd like to call your attention to the customary Safe Harbor statement regarding forward-looking information.

我想指出我們網站上發布的與今天的電話會議相關的幻燈片演示。幻燈片演示可以在我們網站的“活動和演示”下找到。在我們的網站上，您還可以找到我們的收益報告和美國證券交易委員會 (SEC) 文件。我想提請您注意有關前瞻性資訊的常規安全港聲明。

Also, please note that nothing in today's call constitutes an offer to sell or a solicitation of offers to purchase our securities.

另外，請注意，今天的電話會議中沒有任何內容構成出售要約或購買我們證券的要約邀請。

Today's conference call includes forward-looking statements, and we ask that you refer to Great Elm Capital Corp.'s filings with the SEC for important factors that could cause actual results to differ materially from these statements. Great Elm Capital Corp. does not undertake to update its forward-looking statements unless required by law.

今天的電話會議包含前瞻性陳述，我們請您參考 Great Elm Capital Corp. 向美國證券交易委員會提交的文件，以了解可能導致實際結果與這些陳述有重大差異的重要因素。除非法律要求，否則 Great Elm Capital Corp. 不承諾更新其前瞻性聲明。

To obtain copies of SEC filings, please visit Great Elm Capital Corp's website under Financials, SEC filings or visit the SEC's website. Hosting the call today is Matt Kaplan, Great Elm Capital Corp's Chief Executive Officer, who will be joined by Chief Financial Officer, Keri Davis; Chief Compliance Officer and General Counsel, Adam Kleinman; and Mike Keller, President of Great Elm's Specialty Finance.

若要取得 SEC 文件的副本，請造訪 Great Elm Capital Corp 網站的「財務」、「SEC 文件」部分，或造訪 SEC 的網站。今天的電話會議由 Great Elm Capital Corp 執行長 Matt Kaplan 主持，其他出席人員包括財務長 Keri Davis、首席合規官兼總法律顧問 Adam Kleinman 以及 Great Elm 專業金融總裁 Mike Keller。

We'll now turn the call over to GECC's CEO, Matt Kaplan.

現在我們將電話轉給 GECC 的執行長 Matt Kaplan。

Thanks, Peter, and thank you all for joining us today. We are pleased to start 2025 with a record-setting quarter, achieving the highest total investment income in the company's history at $12.5 million. Notably, the first quarter was also our highest-ever cash income quarter, a testament to the strategic portfolio enhancements undertaken over the past few years.

謝謝，彼得，也謝謝大家今天加入我們。我們很高興在 2025 年以創紀錄的季度開始，實現了公司歷史上最高的總投資收益 1,250 萬美元。值得注意的是，第一季也是我們有史以來現金收入最高的季度，這證明了過去幾年進行的策略性投資組合增強。

This 37% increase in TII from last quarter and more than 40% year-over-year growth was driven by the success of our CLO JV as well as from income generated by new investments in the quarter. NII per share doubled to $0.40 per share from $0.20 in the prior quarter, largely attributable to the increase in total investment income and the ramping contributions from investments.

TII 較上一季成長 37%，年成長超過 40%，這得益於我們 CLO JV 的成功以及本季新投資產生的收入。每股 NII 從上一季的 0.20 美元翻了一番，達到每股 0.40 美元，主要歸因於總投資收入的增加以及投資貢獻的增加。

Our NII more than covered the increased first quarter distribution of $0.37 per share, a 5.7% increase from the prior quarter's $0.35 per share distribution. This marks our commitment to delivering growing income to shareholders, supported by solid underlying portfolio performance. As we move through the second quarter, we are well positioned to further execute on our long-term growth strategy and navigate the dynamic macro environment. Based on current expectations, we anticipate that second quarter NII will exceed first quarter levels.

我們的 NII 足以彌補第一季每股 0.37 美元的增加分配，比上一季每股 0.35 美元的分配增加 5.7%。這標誌著我們致力於透過穩健的投資組合表現為股東帶來不斷增長的收入。隨著第二季的到來，我們已做好準備，進一步執行我們的長期成長策略，並應對動態的宏觀環境。根據目前的預期，我們預計第二季的NII將超過第一季的水準。

As we discussed on our last call, we anticipated an increase in cash distributions from the CLO JV this quarter at CLO distribution patterns are typically uneven in their early stages. For example, we received $3.8 million of cash distributions from the CLO JV in the first quarter of 2025 as compared to $0.5 million in the fourth quarter of 2024, which was a step down from the $3.2 million in the third quarter of 2024.

正如我們在上次電話會議上所討論的那樣，我們預計本季度 CLO JV 的現金分配將會增加，因為 CLO 分配模式在早期階段通常是不均衡的。例如，我們在 2025 年第一季從 CLO JV 獲得了 380 萬美元的現金分配，而 2024 年第四季為 50 萬美元，比 2024 年第三季的 320 萬美元有所下降。

Additionally, in the second quarter to date, we have received $3 million of cash distributions from the JV. We do expect these fluctuations will dampen over time as we fund additional CLO investments and continue to leverage our increased scale. For these reasons and considering our ongoing capital raising and deployment initiatives we'd like to reiterate that it is best to review GECC on a four-quarter basis opposed to benchmarking the company quarter-to-quarter.

此外，截至目前，第二季我們已從合資公司收到 300 萬美元的現金分配。我們確實預計，隨著我們為額外的 CLO 投資提供資金並繼續利用我們擴大的規模，這些波動將隨著時間的推移而減弱。基於這些原因，並考慮到我們正在進行的融資和部署計劃，我們想重申，最好每四個季度對 GECC 進行一次審查，而不是每季對公司進行基準測試。

Moving on to our portfolio's performance. While our NII generation was strong, we did see a modest step down in NAV per share, as outlined on slide 8, driven by unrealized losses on portfolio investments. We began to see volatility in the markets pick up in the middle of the quarter, which led to markdowns on positions at quarter end, specifically our CLO JV equity and our investments in CW Opportunity 2 LP a vehicle, which was created to hold convertible preferred equity in CoreWeave, an AI hyperscaler, which went public at the end of March. We remain confident in these investments in our portfolio and expect these unrealized losses to reverse over time as market conditions stabilize.

繼續討論我們的投資組合的表現。雖然我們的 NII 生成很強勁，但我們確實看到每股 NAV 略有下降，如第 8 張幻燈片所示，這是由投資組合的未實現損失所致。我們開始看到市場波動在本季中期加劇，這導致季度末頭寸減少，特別是我們的 CLO JV 股權和我們對 CW Opportunity 2 LP 的投資，該投資工具旨在持有 AI 超大規模企業 CoreWeave 的可轉換優先股，該公司於 3 月底上市。我們對投資組合中的這些投資仍然充滿信心，並預計隨著市場狀況的穩定，這些未實現的損失將隨著時間的推移而逆轉。

Additionally, we recently filed a prospectus supplement for a $100 million at-the-market equity program to issue shares at NAV or better. We believe this new tool will provide us with additional capital flexibility as we seek to continue scaling GECC. We remain well positioned to cover our dividend over the course of 2025, and our portfolio is set up to weather the uncertain macro environment. With our strength and foundation, we remain confident in our ability to generate sustainable returns and deliver increasing value to our shareholders in the years ahead.

此外，我們最近提交了一份招股說明書補充文件，涉及一項 1 億美元的市場股票計劃，以資產淨值或更優的價格發行股票。我們相信，在我們尋求繼續擴大 GECC 規模的過程中，這項新工具將為我們提供額外的資本彈性。我們仍處於有利地位，能夠在 2025 年支付股息，而我們的投資組合能夠抵禦不確定的宏觀環境。憑藉我們的實力和基礎，我們仍然有信心在未來幾年為股東創造可持續的回報和增加價值。

With that, I'd like to hand the call over to Keri Davis to discuss our first quarter 2025 performance.

說完這些，我想把電話交給凱莉戴維斯 (Keri Davis)，討論我們 2025 年第一季的業績。

Thanks, Matt. I'll go over our financial highlights now, but we invite all of you to review our press release, accompanying presentation and SEC filings for greater detail. During the first quarter, GECC generated NII of $4.6 million or $0.40 per share as compared to $2.1 million or $0.20 per share in the fourth quarter of 2024. The increase in NII was primarily driven by the receipt of distributions from the CLO JV as well as income from other new investments.

謝謝，馬特。我現在將介紹我們的財務亮點，但我們邀請大家查看我們的新聞稿、隨附的簡報和美國證券交易委員會 (SEC) 文件以了解更多詳細資訊。第一季度，GECC 產生的 NII 為 460 萬美元，即每股 0.40 美元，而 2024 年第四季為 210 萬美元，即每股 0.20 美元。NII 的成長主要得益於 CLO JV 的分配以及其他新投資的收入。

Our net assets as of March 31, 2025, were $132 million as compared to $136 million as of December 31. Our NAV per share was $11.46 as of March 31 versus $11.79 as of December 31. Details for the quarter-over-quarter change in NAV can be found on Slide 8 of the investor presentation.

截至 2025 年 3 月 31 日，我們的淨資產為 1.32 億美元，截至 12 月 31 日為 1.36 億美元。截至 3 月 31 日，我們的每股淨值為 11.46 美元，而截至 12 月 31 日，我們的每股資產淨值為 11.79 美元。有關資產淨值季度環比變化的詳細信息，請參閱投資者簡報的第 8 張投影片。

As of March 31, GECC's asset coverage ratio was 163.8% compared to 169.7% as of December 31. As of March 31, total debt outstanding was approximately $207 million and we had $12 million outstanding on our $25 million revolver. Cash totaled approximately $1.3 million.

截至 3 月 31 日，GECC 的資產覆蓋率為 163.8%，而截至 12 月 31 日的資產覆蓋率為 169.7%。截至 3 月 31 日，未償還債務總額約為 2.07 億美元，而我們的 2,500 萬美元循環信貸中，有 1,200 萬美元尚未償還。現金總額約130萬美元。

Our Board of Directors authorized a $0.37 per share cash distribution for the second quarter, which will be payable on June 30 to stockholders of record as of June 16. The distribution equates to a 12.9% annualized dividend yield on our March 31 net asset value.

我們的董事會批准第二季每股 0.37 美元的現金分配，將於 6 月 30 日支付給 6 月 16 日登記在冊的股東。該分配相當於我們 3 月 31 日淨資產價值的 12.9% 年度股息收益率。

I'll turn the call back over to Matt.

我會把電話轉回給馬特。

Thanks, Keri. In the quarter, we continued to enhance our portfolio strength by steadily increasing our secured debt positions. Our CLO joint venture remains a significant contributor to the strategy and we expect it to remain an important source of income for GECC as we continue to expand the vertical, targeting high teens to 20% returns over time.

謝謝，凱莉。本季度，我們透過穩步增加擔保債務部位繼續增強我們的投資組合實力。我們的 CLO 合資企業仍然是該策略​​的重要貢獻者，我們預計，隨著我們繼續擴大垂直領域，目標是隨著時間的推移，它將繼續成為 GECC 的重要收入來源，實現高回報率至 20%。

We have grown our corporate portfolio to nearly $250 million of investments and first-lien loans comprised 71% of the corporate portfolio as of March 31. This demonstrates our commitment to enhancing portfolio quality while maintaining a focus on secured income-generating assets.

截至 3 月 31 日，我們的公司投資組合已擴大至近 2.5 億美元的投資，其中優先留置權貸款占公司投資組合的 71%。這表明我們致力於提高投資組合質量，同時繼續專注於有擔保的創收資產。

Alongside new investments, our CLO JV helped drive us to record total investment income this quarter. This joint venture expands our exposure to a diverse portfolio of broadly syndicated first lien loans and continues to be a key contributor to our early success, with approximately $48 million deployed through March 31.

除了新的投資外，我們的 CLO JV 還幫助我們在本季創下了總投資收入記錄。該合資企業擴大了我們對廣泛銀團優先留置權貸款的多元化投資組合的敞口，並繼續成為我們早期成功的關鍵因素，截至 3 月 31 日已部署約 4800 萬美元。

As a reminder, we hold the majority of our CLO exposure a bit differently than other BDCs for closed-end funds that many may be familiar with. These other entities typically hold their investments directly, which allows the income to be recognized utilizing the effective yield methodology, while GECC only recognized the income when the CLO JV makes distributions. This leads to a more uneven nature to our income reporting.

提醒一下，我們持有的大部分 CLO 曝險與許多人可能熟悉的其他封閉式基金的 BDC 略有不同。這些其他實體通常直接持有其投資，這使得可以利用有效收益率方法來確認收入，而 GECC 僅在 CLO JV 進行分配時確認收入。這導致我們的收入報告更加不均衡。

While we may hold some minority CLO positions directly on our balance sheet, the JV affords us the ability to have exposure to majority interest in CLOs, which we believe can provide enhanced economics. We are comfortable with this quarter-to-quarter income oscillation, which we expect will dampen over time.

雖然我們可能在資產負債表上直接持有一些少數 CLO 頭寸，但合資企業使我們能夠接觸 CLO 的多數股權，我們相信這可以提高經濟效益。我們對這種季度間收入波動感到滿意，我們預計這種波動會隨著時間的推移而減弱。

Further, outside of some markdowns we discussed, our investment portfolio is performing well. And as of March 31, we had zero positions on nonaccrual. Notably, the single issuer that we had on nonaccrual at year-end was restructured in February into three debt instruments, which will begin generating income in 2026, demonstrating our hands-on approach to working with our portfolio companies.

此外，除了我們討論過的一些降價之外，我們的投資組合表現良好。截至 3 月 31 日，我們的非應計部位為零。值得注意的是，我們在年底未提列的單一發行人已於 2 月重組為三種債務工具，這些工具將於 2026 年開始產生收入，這反映了我們與投資組合公司合作的務實態度。

While it's still too early to assess the overall impact of tariffs on our portfolio, our initial analysis suggests the limited direct exposure. Our portfolio maintains broad diversification with a predominantly domestic focus and minimal exposure to China.

雖然現在評估關稅對我們投資組合的整體影響還為時過早，但我們的初步分析顯示直接影響有限。我們的投資組合保持廣泛的多樣化，主要關注國內市場，對中國的依賴最小。

With our defensive portfolio structure, we believe we are well positioned to navigate the ongoing tariff uncertainty. In this volatile environment, we continue to take a measured approach to capital deployment. As always, we prioritize credit quality and seek investments with minimal risk of permanent capital loss, directing capital towards opportunities that are primed to perform across various economic cycles. This balanced approach, combined with our strengthened platform and diversified portfolio positions us well to continue growing Great Elm Capital Corp. and delivering attractive risk-adjusted returns for our shareholders.

憑藉我們的防禦性投資組合結構，我們相信我們能夠很好地應對持續的關稅不確定性。在這種動盪的環境中，我們繼續採取審慎的方式進行資本配置。與往常一樣，我們優先考慮信貸質量，尋求永久性資本損失風險最小的投資，將資本引導至能夠在各個經濟週期中表現良好的機會。這種平衡的方法，加上我們強化的平台和多元化的投資組合，使我們能夠繼續發展 Great Elm Capital Corp.，並為我們的股東帶來有吸引力的風險調整回報。

We remain excited for the future of GECC. And with that, I would like to turn the call over to Mike Keller to provide an update on specialty finance.

我們仍然對 GECC 的未來充滿期待。接下來，我想將電話轉給麥克凱勒 (Mike Keller)，讓他提供有關專業融資的最新資訊。

Thanks, Matt. The start of 2025 has been transformative for Great Elm Specialty Finance. In January, we combined the corporate and health care ABL portfolios and replaced our existing asset-backed lender with a new facility led by CIBC, which is now an active syndication to increase the facility commitment as our business ramps.

謝謝，馬特。2025 年對 Great Elm Specialty Finance 來說是一個變革性的開始。今年 1 月，我們合併了企業和醫療保健 ABL 投資組合，並以加拿大帝國商業銀行 (CIBC) 領導的新貸款機構取代了我們現有的資產支持貸款機構。隨著我們業務的成長，加拿大帝國商業銀行現在是一個積極的銀團貸款機構，旨在增加貸款承諾。

In March, after repositioning the legacy, Great Elm Healthcare Finance business to focus solely on health care real estate financing opportunities, we closed on a leverage facility to support the real estate assets held within that platform. In April, we completed the rebranding of Sterling as Great Elm Commercial Finance, which today offers traditional ABL products to a wide range of industries, including health care.

3 月份，在重新定位傳統的 Great Elm Healthcare Finance 業務以專注於醫療保健房地產融資機會之後，我們關閉了一項槓桿工具，以支持該平台內持有的房地產資產。今年 4 月，我們完成了 Sterling 的品牌重塑，更名為 Great Elm Commercial Finance，該公司目前向包括醫療保健在內的廣泛行業提供傳統的 ABL 產品。

Also, GESF exited its last equipment lease holding at, again, further simplifying the business. These actions have streamlined our operations and better aligned our platform with growth objectives. While income from GESF was similar to the prior quarter, we are confident that these changes will translate into increasing returns over the remainder of the year.

此外，GESF 退出了其最後的設備租賃，這進一步簡化了業務。這些舉措簡化了我們的運營，使我們的平台更能與成長目標保持一致。雖然來自 GESF 的營收與上一季相似，但我們相信這些變化將轉化為今年剩餘時間內的回報成長。

Thanks, Mike. In closing, we are pleased with our first quarter results and remain well positioned to grow NII in the second quarter and cover our dividend in 2025. With that, I'll turn the call over to the operator for questions. Operator?

謝謝，麥克。最後，我們對第一季的業績感到滿意，並仍有望在第二季實現 NII 成長並在 2025 年支付股息。說完這些，我將把電話轉給接線生來回答問題。操作員？

Thank you. We will now be conducting a question-and-answer session. (Operator Instructions)

謝謝。我們現在將進行問答環節。（操作員指示）

Mickey Schleien, Ladenburg Thalmann.

米基施萊恩、拉登堡塔爾曼。

Yes, good morning, everyone. Matt, how do you see the portfolio and the funds NAV performing with both the broadly syndicated loan market and private spread -- private credit spreads widening in April.

是的，大家早安。馬特，在廣泛的銀團貸款市場和私人信貸利差擴大的情況下，您如何看待投資組合和基金資產淨值的表現？

So that's a great question, Mickey. So I think overall, you can see in the first quarter, we saw some modest markdowns in our portfolio. You can see we had $0.38 of net unrealized gain loss, of which about $0.30 of that is actually attributable to two positions that we noted the CLO JV and also our investment in CoreWeave. Away from that, the rest of the portfolio was performing pretty heavily, and we actually started to see some marked volatility pick up in, call it, late February, early March.

這是一個很好的問題，米奇。因此我認為總體而言，您可以看到在第一季度，我們的投資組合出現了一些小幅下跌。您可以看到，我們有 0.38 美元的淨未實現損益，其中約 0.30 美元實際上歸因於我們注意到的兩個頭寸：CLO JV 以及我們對 CoreWeave 的投資。除此之外，投資組合中的其他部分錶現都相當出色，我們實際上在二月底三月初開始看到一些明顯的波動性上升。

In April, really, if you look at kind of the CLO market by the end of last week, we're kind of getting close to being back to where we ended March, interestingly enough in spread. So kind of depends on where we remain to be seen. For the syndicated loan market, you can pull up this move down a little bit from 331 to 431. So obviously, on a whole on a diversified portfolio. You can read between the lines there.

實際上，如果您觀察一下上週末的 CLO 市場，您會發現 4 月的 CLO 市場已經接近 3 月底的水平，有趣的是，價差也相當大。所以這有點取決於我們仍處於什麼位置。對於銀團貸款市場，你可以將這一走勢從 331 稍微下調至 431。顯然，總體而言，這是一個多元化的投資組合。您可以讀懂字裡行間的意思。

But I think overall, the portfolio is pretty healthy and we had minimal NAV impact, those are all unrealized. Over time, as market conditions stabilize, we would expect a lot of that to largely reverse. One of the positives of our CLO position is they're relatively young. So actually, when you look at CLOs in choppy markets like this, kind of this best CLO vintages, are the ones that were issued just prior to significant bouts of market volatility due to the long-term financing structure of them.

但我認為整體而言，投資組合非常健康，我們對資產淨值的影響很小，這些都是未實現的。隨著時間的推移，隨著市場狀況的穩定，我們預計這種情況將在很大程度上扭轉。我們的 CLO 職位的一個優點是他們相對年輕。因此，實際上，當您在這種波動的市場中觀察 CLO 時，由於其長期融資結構，最好的 CLO 年份是在市場大幅波動之前發行的。

You look at the 2007, '08 vintages of CLOs or you look to the 2019 vintages of COVID, all very, very strong performance over the life cycle. So I think we're well set up there. And then on CoreWeave, if you could just look at the publicly traded stock now, we are invested in a vehicle that has a convertible preferred.

看看 2007 年、2008 年的 CLO 或 2019 年的 COVID，它們在整個生命週期中都表現得非常非常強勁。所以我認為我們已經做好了充分的準備。然後在 CoreWeave 上，如果您可以看看現在公開交易的股票，我們投資了具有可轉換優先股的工具。

So you can kind of think about it at 331, if the stock had closed around $48 a share, we would have had a roughly flat mark quarter-on-quarter, you can see that at 331, the stock did close to 37 or 38 level and around the end of March there.

因此，您可以這樣想，如果股價在 331 美元時收於每股 48 美元左右，那麼我們的季度環比水平將大致持平，您可以看到，在 331 美元時，股價確實接近 37 或 38 美元的水平，並且在 3 月底左右達到該水平。

So we took a hit on that. But look at the -- it's been a volatile name. We have a lot of faith in the company over time and stock, I think, was over 50 as of yesterday's close.

所以我們對此受到了打擊。但看看——這是一個不穩定的名字。長期以來，我們對該公司充滿信心，我認為，截至昨天收盤，其股價已超過 50。

You just mentioned that the CLO market has sort of stabilized. The JV holds warehouse facility with Apex credit, what is the JV earning on that warehouse? And now that the market is stabilized, when do you expect that CLO to price?

您剛才提到 CLO 市場已經趨於穩定。合資企業擁有 Apex 信貸的倉庫設施，合資企業從該倉庫獲得多少收益？現在市場已經穩定，您預計 CLO 何時會定價？

So that CLO actually closed in at the end of last month already, and we were able to get the execution on that done with commitments that were made in kind of early March. So it was a very successful outcome to be able to get that one taken care of.

因此，CLO 實際上已於上個月底關閉，並且我們能夠按照 3 月初做出的承諾完成該任務。因此，能夠解決這個問題是一個非常成功的結果。

I'm sorry, when did you say it priced?

抱歉，您說的是什麼時候定價的？

It closed, April.

四月，它關閉了。

April. And do you -- so it usually takes a quarter or two for CLOs to provide their initial distribution. Would that be the case for this investment?

四月。您是否如此 — — 因此 CLO 通常需要一到兩個季度的時間才能提供其初始分配。這項投資會出現這種情況嗎？

For that specific one, yes, I think we would expect our first distribution from that underlying investment in the underlying CLO JV to come in October of 2025.

對於這個特定的，是的，我認為我們預計從基礎 CLO JV 的基礎投資中獲得的第一次分配將在 2025 年 10 月進行。

Okay. So relative to --

好的。因此相對於--

So as I kind of laid out on the CLO -- CLOs and to a whole business, we have kind of -- we'll have a little bit of fluctuation in the way our earnings are done because the CLO JV will be distributing dividends, right? That's how we record our income from that. So in the first quarter, we got about $3.8 million from the CLO JV. This far quarter-to-date, $4.3 million.

因此，正如我在 CLO 以及整個業務中所述，我們的盈利方式會有一點波動，因為 CLO JV 會分配股息，對嗎？這就是我們記錄收入的方式。因此，在第一季度，我們從 CLO JV 獲得了約 380 萬美元。本季迄今為 430 萬美元。

So I think we're well positioned to grow NII and covered $0.37 dividend next quarter. And as I mentioned, we kind of have to look and evaluate our business over a 12-month period rather than quarter-to-quarter. And I expect our full year NII will improve and cover as it looks to relatively '24 to be higher and we'll cover the dividend.

因此我認為我們已做好準備，實現 NII 的成長，並在下個季度派發 0.37 美元的股息。正如我所提到的，我們必須以 12 個月為週期而不是逐季度來審視和評估我們的業務。我預計我們的全年 NII 將會改善並覆蓋，因為它看起來相對較高，並且我們將涵蓋股息。

I understand. And then 1 more question, if I might. You borrowed on your credit facility, and I'm curious whether that facility requires mark-to-market accounting just thinking in terms of all the volatility we're seeing in the markets.

我明白。如果可以的話，我還有一個問題。您利用信貸額度進行借款，我很好奇，考慮到我們在市場上看到的所有波動，該信貸額度是否需要以市價計價會計。

Sure. So the facility has a borrowing base, which is feeds in the fair value of investments that are comprised of the borrowing base, but that we have significant borrowing capacity, multiples of what the actual commitment is more than 3x the commitment level using recent parks.

當然。因此，該設施有一個借貸基礎，它輸入了由借貸基礎組成的投資的公允價值，但我們擁有相當大的借貸能力，是實際承諾的數倍，是使用近期公園的承諾水平的 3 倍以上。

So I have no concerns there. And then the covenants are laid out in the Q, it’s I think minimum net asset value of $65 million. We have $135-ish million of NAV and then 150% ACR. So kind of just the standard BDC ACR covenant there. I think we drew on the revolver. If you look, we raised equity at the very end of the fourth quarter, which led to an increase in share count, and we rolled over the quarter with year-end with $8.5-ish million of cash.

所以我對此沒有任何擔憂。然後 Q 中列出了契約，我認為最低淨資產價值為 6500 萬美元。我們的資產淨值約為 1.35 億美元，平均資本回報率 (ACR) 為 150%。因此，那裡只是標準的 BDC ACR 契約。我想我們畫的是左輪手槍。如果你看一下，我們會發現，我們在第四季末增加了股權，從而導致股票數量的增加，並且我們在年底的季度末擁有約 850 萬美元的現金。

So that was just as we deployed and we raised $12 million – or sorry, we raised $13.3 million in the fourth quarter, modestly drawing on our revolver to optimize our portfolio and yield helped also, as I said, our income this quarter was driven by new deployments as well as the CLO JV. So we are looking to continue to grow, diversify and scale GECC.

就在我們部署的時候，我們籌集了 1200 萬美元——或者抱歉，我們在第四季度籌集了 1330 萬美元，適度動用我們的循環信貸來優化我們的投資組合，收益也有幫助，正如我所說，我們本季度的收入是由新的部署以及 CLO JV 推動的。因此，我們希望繼續發展、多樣化和擴大 GECC。

I appreciate that. That's it for me this morning. Thank you for taking my questions.

我很感激。這就是我今天早上所講的內容。感謝您回答我的問題。

Eric Zwick, Lucid Capital Markets.

Eric Zwick，Lucid Capital Markets。

Thanks. Good morning. I wanted to start first with the question. I'm curious if you could provide a little, maybe, color into the timing of the new deployments and the monetizations you had in the quarters based on the incoming yields being significantly higher than the outgoing yield, it seems like there should be some benefit to the overall portfolio. So curious how much of that was actually reflected in the first quarter. And if there may be some benefit in 2Q as well?

謝謝。早安.我想先回答這個問題。我很好奇，您是否可以提供一些關於新部署的時間安排以及您在各個季度的貨幣化情況的詳細信息，因為流入收益率明顯高於流出收益率，這似乎對整體投資組合應該有一些好處。所以很好奇其中有多少實際上反映在第一季。那麼第二季是否也會有一些好處呢？

I think it was -- we had a good question. I think it was a little barbelled. We had excess cash and some commitments that we had to close on in the January time frame, but then kind of February was more of a low. And then in March, I would say, we were able to take advantage of a little bit of the market, also it started to pick up some deployments. And we hope to see some additional flow-through effect into Q2. As I said, I think we're looking to see 2Q NII increase sequentially from 1Q?

我認為——我們提出了一個很好的問題。我認為它有點槓槓的。我們有多餘的現金和一些承諾需要在一月完成，但二月的情況比較低迷。然後到了三月份，我想說，我們能夠利用一點市場，而且它也開始獲得一些部署。我們希望看到第二季的一些額外流通效應。正如我所說，我認為我們預計第二季 NII 會比第一季環比增加？

Got it. And maybe just kind of continuing along that thought process in terms of forward yield, could you maybe just quantify what the pipeline looks like today in terms of magnitude of size as well as what you're seeing for yields in the pipeline today?

知道了。也許只是繼續沿著遠期收益率的思維過程，您能否量化當今管道的規模以及您所看到的當今管道的收益率？

Sure. I think we are looking at a few private credit kind of direct lending opportunities. As always, we had a couple that have been put on pause, until we figure out the tariff situation as tariffs are kind of leading to some uncertainty out there. However, there is other activity going on in the space in lending. We're starting -- we have seen some M&A or refinancing opportunities, companies looking for capital.

當然。我認為我們正在尋找一些私人信貸類型的直接貸款機會。像往常一樣，我們暫停了一些項目，直到我們弄清楚關稅情況，因為關稅在某種程度上導致了一些不確定性。然而，借貸領域還有其他活動正在進行。我們已經開始——我們已經看到一些併購或再融資機會，公司正在尋求資本。

So the pipeline actually remains a little stronger, I'd say, than it was probably three to four months ago on the direct lending side. And then we are -- the broadly syndicated tradable loan space is providing certain pockets of opportunity here and there.

因此，我認為，與三到四個月前的直接貸款相比，通路實際上仍然更加強勁。然後我們——廣泛的銀團可交易貸款領域正在提供一定的機會。

There are some babies that get thrown out with the bathwater due to industry sometimes. And our team continues to look at underwriting those. We maintain relationships with many management teams and sponsors that allow us to work to create a pipeline of names in the syndicated market that maybe aren't interesting when they come as a new issue, but we follow them and track them and that pipeline is looking interesting.

有時，工業生產會把一些嬰兒連同洗澡水一起倒掉。我們的團隊將繼續考慮承保這些。我們與許多管理團隊和贊助商保持著良好的關係，這使我們能夠在聯合市場中創建一系列名稱，這些名稱在作為新發行出現時可能並不有趣，但我們會關注並追蹤它們，並且這些名稱看起來很有趣。

We need to maintain a cautious approach to that and we have certain assets in our portfolio that are in the broadly syndicated loan space that are very, very high-quality kind of I would quasi call it a cash surrogate bucket that when we want to take advantage of certain opportunistic trading levels in names that we know and companies that we know how we can go harvest some of our cash surrogate low-yielding investments to rotate into that. But it's opportunistic and not a large percentage of what we do, but helps generate some alpha over time.

我們需要對此保持謹慎的態度，我們的投資組合中某些資產屬於廣泛銀團貸款領域，這些資產質量非常非常高，我將其稱為現金替代桶，當我們想要利用我們熟悉的名稱和公司的某些機會性交易水平時，我們可以收穫一些現金替代低收益投資並輪換到其中。但這是一種機會主義，並不占我們所做工作的很大一部分，但有助於隨著時間的推移產生一些阿爾法收益。

And then I appreciate the comments you gave in the prepared remarks regarding kind of limited exposure, direct exposure to tariffs. So I'm curious if you've look at your portfolio in terms of exposure to government contracts just given some of the dose cuts and cutbacks in federal spending and things of that nature?

然後，我很欣賞您在準備好的評論中提出的有關有限風險暴露、直接關稅風險暴露的評論。所以我很好奇，考慮到聯邦政府支出的削減和類似因素，您是否從政府合約的角度考慮過您的投資組合？

We have. We were looking at an investment that we saw that we had historically been involved in the situation. It was refinanced and then this is not in our portfolio anymore, but due to the government contract nature of it, it's traded off, we've decided not to take -- to get reinvolved.

我們有。我們正在考慮一項投資，我們發現我們過去曾參與過這種情況。它經過再融資，然後不再在我們的投資組合中，但由於它的政府合約性質，我們決定不再參與。

But I think on the tariff side, the question is that a lot of people are asking, what's the direct exposure? And I think we're working to think through the second and third-order effects, the dynamic of tariffs and also the other government initiatives. I think the bigger question that everyone is trying to understand is what's the duration of this uncertainty and how will that lead to economic changes.

但我認為，在關稅方面，很多人都在問，直接風險是什麼？我認為我們正在努力思考二階和三階效應、關稅的動態以及其他政府措施。我認為每個人都想了解的更大問題是這種不確定性會持續多久，以及它將如何導致經濟變化。

And to that end, we've been reunderwriting our existing investments and focusing on thinking through that lens on new investments on if there is a recession, how severe could it be? What's the company's defensive position? So we are considering that in all of our current portfolio investments as we do our routine portfolio reviews as well as new underwriting.

為此，我們一直在重新承保我們現有的投資，並專注於透過這種視角來思考新的投資，如果出現經濟衰退，其嚴重程度會有多大？公司的防禦立場是什麼？因此，我們在進行常規投資組合審查和新承銷時，會考慮我們所有目前投資組合的投資。

Great. And one last one for me, and I'll step aside. So just looking at the kind of industry breakdown of the corporate portfolio, about 10% is categorized as consumer, maybe, say, another 2% if you include casinos and gaming, there are concerns in the market regarding that the lower-end consumer and especially if we get another inflation from the tariffs. So just curious if you could kind of characterize your portfolio in terms of what segment of consumers there, they're targeting. And what potential kind of impacts or mitigations might need to be made there?

偉大的。對我來說，還有最後一個，然後我就退出了。因此，僅從企業投資組合的行業細分來看，大約 10% 被歸類為消費者，如果包括賭場和博彩業，那麼可能還有另外 2%，市場對低端消費者存在擔憂，尤其是如果關稅再次引發通膨。所以我很好奇您是否可以根據目標消費者群體來描述您的投資組合。那裡可能需要產生哪些潛在影響或採取哪些緩解措施？

Yes. Our largest exposure in the consumer space would be in companies that have exposure to private label products and manufacturing. So to the extent there is weakness in the consumer, that’s kind of – they should benefit from any trade-down effect from the premium brands into – in the private label. So I think our consumer and another one of our consumer services businesses or larger exposure is you can look on the scheduled investments is CSC ServiceWorks, which is laundry math.

是的。我們在消費領域最大的投資對象就是那些擁有自有品牌產品和製造業務的公司。因此，就消費者的弱勢而言，他們應該會從高端品牌向自有品牌的降級效應中受益。因此，我認為我們的消費者和另一項消費者服務業務或更大的曝光度是您可以查看的預定投資是 CSC ServiceWorks，即洗衣數學。

So generally, very recession-resilient businesses. So I think our consumer is actually more defensive than just if you think about the kind of regular white label brand like what is the consumer product. It’s more tied to the benefit from any trade-down effects.

整體而言，這些企業都具有很強的抵禦經濟衰退的能力。因此，我認為我們的消費者實際上比僅僅考慮常規白標品牌（例如消費產品）更具防禦性。它與任何降價效應帶來的好處更相關。

That's helpful, thanks for taking all my questions today.

這很有幫助，感謝您今天回答我的所有問題。

(Operator Instructions)

（操作員指示）

Mitchell Penn, Oppenheimer & Company.

米切爾·佩恩，奧本海默公司。

Thanks. A quick question on the CLO. What's your expected ROE on that investment? We are targeting, call it, high teens to 20% returns over IRRs on our dollars in. And is that before fees, do you take any fees out at the joint venture level?

謝謝。關於 CLO 的一個快速問題。您對該項投資的預期淨資產收益率是多少？我們的目標是，讓我們的美元投資報酬率達到內部報酬率的百分之十幾到 20%。在收取費用之前，你們在合資企業層級是否扣除了任何費用？

There's no like GECC, I think that's just income that GECC, the TII return that we expect to receive from the JV. There's no -- the JV does not charge a management fee or anything like that specifically.

沒有像 GECC 這樣的，我認為這只是 GECC 的收入，也就是我們期望從合資企業獲得的 TII 回報。沒有－合資企業不收取管理費或類似的費用。

And if we just look at Q1, you had $3.8 million in dividends. And then what was the loss relative to the CLO?

如果我們只看第一季度，您的股息為 380 萬美元。那麼相對於 CLO 的損失是多少呢？

Yes, I think it was approximately $2 million. It was, I want to say, say less than a 5% hit to NAV. So if you kind of look at the other publicly traded CLO closed-end funds, I think they kind of some of them have provided ranges, I guess, for the first quarter, but you can look at their NAVs. They're down anywhere from, call it, I want to say, it's a big range from like 6% 14%. I think our CLOs are younger and longer reinvestment periods, less relatively cleaner portfolios, et cetera.

是的，我認為大約是 200 萬美元。我想說的是，這對淨值的影響不到 5%。因此，如果你看一下其他公開交易的 CLO 封閉式基金，我認為其中一些基金已經提供了第一季的範圍，但你可以看看它們的資產淨值。我想說，它們的下降幅度很大，從 6% 到 14% 不等。我認為我們的 CLO 更年輕、再投資期更長、投資組合相對更清潔，等等。

Yes, we did. We actually track those in the first quarter ROEs were negative for everyone. So when you took the cash flow minus the marks, they were all down. So they charge.

是的，我們做到了。我們實際上追蹤了第一季所有公司的 ROE 為負的情況。因此，當你用現金流減去分數時，它們全都下降了。所以他們收費。

They have a fee structure on their side. I think when we look at the JV, right, the JV is just if you look at it actually on the quarter, even with the markdown with the income we generated, it was positive to GECC.

他們有自己的收費結構。我認為，當我們看合資企業時，對的，如果從實際季度來看，即使我們產生的收入有所下降，但對 GECC 來說還是有利的。

Thanks Mitchell.

謝謝米切爾。

There are no further questions at this time. I would like to turn the floor back over to Matt Kaplan for closing comments.

目前沒有其他問題。我想把發言權交還給馬特卡普蘭 (Matt Kaplan)，請他發表最後評論。

Thank you again for joining us today. We’re pleased with another quarter of solid performance as we continue to execute on our long-term growth strategy. We look forward to continued investor dialogue. Please let us know if we can help with any follow-up questions that you may have.

再次感謝您今天加入我們。隨著我們繼續執行長期成長策略，我們對又一個季度的穩健表現感到滿意。我們期待繼續與投資者對話。如果我們可以幫助您解決任何後續問題，請告知我們。

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

今天的電話會議到此結束。現在您可以斷開線路。感謝您的參與。