Great Elm Capital Corp (GECC) 2025 Q4 法說會逐字稿

Greetings, and welcome to the Great Elm Capital Corporation fourth quarter and full year 2025 financial results conference call. (Operator Instructions) As a reminder, this conference is being recorded.

各位好，歡迎參加 Great Elm Capital Corporation 2025 年第四季及全年財務業績電話會議。（操作說明）提醒各位，本次會議正在錄音。

It is now my pleasure to introduce Adam Yates, Managing Director. Please go ahead.

現在我榮幸地向大家介紹總經理亞當耶茨。請繼續。

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

大家好，感謝各位參加 Great Elm Capital Corp. 2025 年第四季及全年財報電話會議。如果您想加入我們的郵件列表，您可以發送電子郵件至 investorrelations@greatelmcap.com，或者您可以直接在我們的網站 www.greatelmcc.com 上註冊接收提醒。

The slide presentation accompanying today's conference call and webcast can be found on our website under Events and Presentations. On our website, you can also find our earnings release and SEC filings. I would like to call your attention to the customary Safe Harbor statement regarding forward-looking information. Also, please note that nothing in today's call constitutes an offer to sell or a solicitation of offers to purchase our securities.

今天電話會議和網路直播的幻燈片簡報可在我們網站的「活動和簡報」欄位下找到。在我們的網站上，您還可以找到我們的獲利報告和向美國證券交易委員會提交的文件。我想提請各位注意有關前瞻性資訊的慣例性「安全港」聲明。另外，請注意，今天的電話會議中的任何內容均不構成出售證券的要約或購買證券的要約邀請。

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. To obtain copies of our SEC filings, please visit Great Elm Capital Corp.'s website under financials, SEC filings, or visit the SEC's website.

今天的電話會議包含前瞻性陳述，我們請您參閱 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. 不承擔更新其前瞻性聲明的義務。如需我們向美國證券交易委員會提交的文件副本，請造訪 Great Elm Capital Corp. 的網站，在「財務」、「美國證券交易委員會文件」欄位下查找，或造訪美國證券交易委員會的網站。

Hosting the call today is Jason Reese, Great Elm Capital Corp.'s newly appointed Executive Chairman of the Board. He'll be joined by Matt Kaplan, Chief Executive Officer; Chris Croteau, Head of Research; Chief Financial Officer, Kari Davis; Chief Compliance Officer and General Counsel, Adam Kleinman; and Mike Keller, President of Great Elm Specialty Finance.

今天主持電話會議的是 Great Elm Capital Corp. 新任命的執行董事長 Jason Reese。他將與執行長 Matt Kaplan、研究主管 Chris Croteau、財務長 Kari Davis、首席合規長兼總法律顧問 Adam Kleinman 以及 Great Elm Specialty Finance 總裁 Mike Keller 一同出席。

I will now turn the call over to GECC's Executive Chairman, Jason Reese.

現在我將把電話交給GECC的執行主席傑森·里斯。

Thanks, Adam, and thank you for joining us today. I am excited to assume the role of Executive Chairman at this important time for the company. This change reflects the Board's decision to enhance direct engagement with management and increase active oversight on our operations as we navigate a more demanding credit environment.

謝謝亞當，也謝謝你今天加入我們。我很榮幸能在公司發展的關鍵時期擔任執行董事長一職。這項變更反映了董事會的決定，即在應對日益嚴峻的信貸環境之際，加強與管理層的直接溝通，並加大對我們營運的積極監督力度。

I would like to begin by thanking Matt Drapkin for his service and leadership during his tenure on the Board. His commitment to GECC helped guide the company through a meaningful chapter, and we are grateful for his many contributions. It is important to note Matt will continue in his role as Vice Chairman of GEG, working closely with me to create value for both GEG and GECC shareholders.

首先，我要感謝 Matt Drapkin 在擔任董事會成員期間所做出的貢獻和展現的領導能力。他對GECC的投入幫助公司度過了一個意義非凡的時期，我們感謝他所做的許多貢獻。值得注意的是，Matt 將繼續擔任 GEG 副董事長一職，與我密切合作，為 GEG 和 GECC 的股東創造價值。

As the Chairman and CEO of Great Elm Group, the parent company to GECC's investment manager, I'm well acquainted with both the management team and our investment process. That familiarity supports a seamless transition into this role. My focus is clear. Strengthen oversight, protect shareholder value, and reinforce accountability across the platform.

身為 GECC 投資管理公司母公司 Great Elm Group 的董事長兼首席執行官，我對管理團隊和我們的投資流程都非常熟悉。這種熟悉度有助於順利過渡到這個角色。我的注意力很明確。加強監管，保護股東價值，強化平台各環節的問責制。

We recognize that recent quarters were challenging for GECC as they have been across much of the sector. We experience losses that reduce NAV, and when performance falls short of expectations, it is our responsibility to respond decisively and transparently. That is precisely what we have done.

我們意識到，與整個產業的大部分地區一樣，GECC 近幾季也面臨挑戰。我們會經歷導致淨資產值下降的損失，當業績未達預期時，我們有責任果斷、透明地回應。我們正是這樣做的。

First, Great Elm Capital Management waived all accrued and unpaid incentive fees through March 31, 2026. As of year-end, that represented a direct benefit to shareholders of approximately $2.3 million, $0.16 per share. This action is immediately accretive to NAV and reinforces our commitment to economic alignment.

首先，Great Elm Capital Management 免除了截至 2026 年 3 月 31 日的所有應計未付激勵費用。截至年底，這給股東帶來了約 230 萬美元的直接收益，即每股 0.16 美元。此舉將立即提升淨值，並強化我們對經濟協調的承諾。

Second, we strengthened our investment platform with the addition of Chris Croteau as Head of Credit Research. Chris brings over 25 years of credit experience and deep underwriting discipline to the team. Since joining, he's worked alongside Matt and the team to enhance portfolio surveillance, fortify risk management, and source compelling new investments. We're excited to have Chris speak with you today.

其次，我們聘請 Chris Croteau 擔任信貸研究主管，從而加強了我們的投資平台。Chris 為團隊帶來了超過 25 年的信貸經驗和深厚的核保專業知識。自加入公司以來，他一直與 Matt 和團隊合作，加強投資組合監控、強化風險管理，並尋找有吸引力的新投資機會。我們很高興今天能請到克里斯來和大家交流。

Third, we have been deliberate in repositioning the portfolio. We ended the year with minimal investments on non-accrual, significantly expanded portfolio diversification, meaningfully reduced exposure to higher risk investments, and materially enhanced our liquidity profile. We believe the portfolio today is more resilient and better aligned with current market conditions. Matt and Chris will provide additional details shortly.

第三，我們一直有意識地調整投資組合。我們以最低的非應計投資結束了這一年，大幅擴大了投資組合多元化，顯著降低了對高風險投資的敞口，並顯著改善了我們的流動性狀況。我們認為，目前的投資組合更具韌性，更能適應當前的市場狀況。Matt 和 Chris 稍後會提供更多細節。

Finally, through my appointment as Executive Chairman, I will be actively engaged. With decades of credit investing experience, I look forward to working closely with management to reinforce discipline underwriting, thoughtful capital allocation, and proactive portfolio management and sourcing. During late 2025 and into first quarter of 2026, we have selectively closed what we believe are compelling cash-generative investments to support sustainable NII growth.

最後，我將透過擔任執行主席一職積極參與各項工作。憑藉數十年的信貸投資經驗，我期待與管理層密切合作，加強承銷紀律、審慎的資本配置以及積極主動的投資組合管理和資源搜尋。在 2025 年末至 2026 年第一季期間，我們選擇性地完成了我們認為具有吸引力的現金產生型投資，以支持可持續的 NII 成長。

We are operating from a position of balance sheet strength. We maintain substantial liquidity, including meaningful cash on hand, availability under our revolving credit facility, and a healthy base of liquid assets. We have no near term balance sheet constraints and full flexibility to act. That flexibility matters.

我們目前資產負債表穩健。我們保持著充足的流動性，包括大量的現金儲備、循環信貸額度以及健康的流動資產基礎。我們近期沒有資產負債表方面的限制，並且擁有充分的行動彈性。這種靈活性很重要。

Periods of uncertainty often create the most attractive risk adjusted opportunities for disciplined investors. With our strengthened underwriting framework, reduced exposure to higher volatility sectors, and ample liquidity, we're well positioned to selectively deploy capital as markets reprice risk. We intend to be patient but decisive.

不確定時期往往為自律的投資者創造最具吸引力的風險調整後投資機會。憑藉我們強化的承保框架、降低對高波動性產業的風險敞口以及充足的流動性，我們能夠根據市場對風險的重新定價，選擇性地部署資本。我們打算保持耐心，但同時也要果斷行事。

When compelling cash generative opportunities emerge through our proprietary sourcing network, we have the capital, the experience, and the governance structure to move quickly. We are committed to rigorous credit standards, transparency, accountability, and long-term shareholder value creation. We believe these principles position GECC to deliver durable performance for our shareholders.

當透過我們專有的資源網絡出現具有吸引力的現金流創造機會時，我們擁有資金、經驗和治理結構，可以迅速採取行動。我們致力於嚴格的信貸標準、透明度、問責制和長期股東價值創造。我們相信，這些原則將使GECC能為股東帶來持久的績效。

I'll now turn it over to Matt to discuss operating results and portfolio positioning in greater detail.

現在我將把發言權交給 Matt，讓他更詳細地討論經營績效和投資組合配置。

Thanks, Jason, and thank you all for joining us today. Our fourth quarter reflected a challenging credit and broader market environment, but also meaningful progress in improving the earnings profile of the company. Total investment income increased sequentially, and that investment income grew more than 50% quarter over quarter to $0.31 per share. That growth was primarily driven by higher cash income, including stronger distributions from our CLO joint venture.

謝謝傑森，也謝謝各位今天蒞臨現場。第四季反映了充滿挑戰的信貸和整體市場環境，但也反映了公司在改善獲利狀況方面取得的實質進展。總投資收益環比增長，且該投資收益環比增長超過 50%，達到每股 0.31 美元。這一成長主要得益於更高的現金收入，包括來自我們 CLO 合資企業的更強勁的分紅。

Net asset value per share declined from $10.01 on September 30, 2025, to $8.07 on December 31, 2025. To note, reflecting the incentive fee waiver that Jason highlighted, pro forma NAV was incrementally higher at $8.23 per share at the end of the fourth quarter.

每股淨值從 2025 年 9 月 30 日的 10.01 美元下降到 2025 年 12 月 31 日的 8.07 美元。值得注意的是，由於 Jason 強調的激勵費用豁免，第四季度末的備考淨資產值略微上升至每股 8.23 美元。

Drivers of the quarter over quarter decrease in NAV include approximately $0.40 per share of unrealized losses resulting from volatility in CoreWeave stock price and approximately $0.30 per share from lower quarter over quarter fair values on our CLO investments due to spread tightening of the CLO's assets coupled with credit market dispersion.

導致淨資產值環比下降的因素包括：CoreWeave 股價波動造成的每股約 0.40 美元的未實現損失，以及由於 CLO 資產利差收窄和信貸市場分散導致 CLO 投資的公允價值環比下降，每股約 0.30 美元。

In addition, both realized and unrealized losses associated with investments that have undergone restructurings and liability management exercises, or LMEs, accounted for approximately $0.80 per share of the decline.

此外，與已進行重組和負債管理措施（LME）的投資相關的已實現和未實現損失，約佔每股下跌 0.80 美元。

Our first brand's investments further impacted NAV by $0.09 per share, and we took actions in the quarter to materially reduce exposure to first brands, which was de minimis as of year-end. In the fourth quarter, we sold our entire allocation of the senior secured DIP loan at an average price of 107% of par after funding the loan at approximately 95% of par.

我們第一個品牌的投資進一步影響了每股淨值 0.09 美元，我們在本季度採取了措施，大幅減少了對第一個品牌的投資，截至年底，該投資已微乎其微。第四季度，我們在以約 95% 的面額進行融資後，以平均 107% 的面額價格出售了我們分配到的全部優先擔保 DIP 貸款。

In addition, we fully exited our roll-up dip loans at an average price of 45% of par. The de-risking of our first brand's dispositions were collectively at much higher levels than where they trade today. As a result of our decisive actions taken in the quarter, which Chris will expand on, the portfolio is now cleaner and more streamlined, comprised primarily of performing more liquid cash generative investments, and we ended the quarter with non-accruals at less than 1% of our portfolio fair value.

此外，我們以平均面額的 45% 的價格完全退出了我們的滾動式下跌貸款。我們第一個品牌資產處置的風險降低水準遠高於它們目前的交易水準。由於我們在本季度採取了果斷行動（克里斯將對此進行詳細說明），投資組合現在更加清晰和精簡，主要由流動性更強、現金產生能力更高的投資組成，並且我們本季度末的非應計項目不到投資組合公允價值的 1%。

Turning to our CLO investments. 2025 was a challenging year for CLO equity investors. Cash flows to the equity tranches of CLOs began to come under pressure as we moved through 2025 as spreads on broadly syndicated loans held by CLOs tightened meaningfully.

接下來談談我們的CLO投資。 2025年對於CLO權益投資者來說是充滿挑戰的一年。隨著我們進入 2025 年，CLO 持有的廣泛銀團貸款的利差大幅收窄，CLO 權益部分的現金流開始面臨壓力。

In addition, lower base interest rates contributed to reduced income. Credit market headwinds also intensified in the back half of the year, with dispersion increasing across the leveraged loan market. Certain sectors and several notable idiosyncratic credits experienced significant price declines, with weakness accelerating in the fourth quarter.

此外，較低的基準利率也導致收入減少。下半年信貸市場逆風加劇，槓桿貸款市場的分散程度也隨之增加。某些產業和一些值得關注的特殊信貸產品價格大幅下跌，第四季疲軟的趨勢加劇。

Despite contributing to the NAV decline in the fourth quarter, our CLO investments generated a positive return throughout 2025 and outperformed the broader CLO equity market. For example, inclusive of our income from the CLO JV in the quarter, the gross return of the JV was roughly flat, while we saw CLO equity focused closed-end funds report net asset plus cash distribution returns down negative 6% to negative 13% in the fourth quarter.

儘管導致第四季度淨資產值下降，但我們的 CLO 投資在 2025 年全年都產生了正回報，並且跑贏了更廣泛的 CLO 股票市場。例如，如果算上本季來自 CLO 合資企業的收入，合資企業的總回報大致持平，而我們看到專注於 CLO 股票的封閉式基金在第四季度報告的淨資產加現金分配回報下降了 6% 至 13%。

While our CLO investments may see volatility to their marks given their leverage and the current backdrop of the industry, it is important to remember these vehicles have long duration liabilities and are constructed to be resilient through periods of market volatility. Further, these investments continue to produce meaningful cash flows which diversify our income streams and support our ability to consistently deliver sustainable net investment income to our shareholders.

雖然鑑於槓桿作用和當前行業形勢，我們的 CLO 投資可能會出現價格波動，但重要的是要記住，這些工具具有長期負債，並且其結構旨在抵禦市場波動時期的影響。此外，這些投資持續產生可觀的現金流，使我們的收入來源多樣化，並支持我們持續為股東帶來可持續的投資淨收益。

As Jason also noted, our portfolio today is positioned more defensively than in prior periods. We have historically maintained an underweight exposure to software-based businesses that may be more susceptible to artificial intelligence disintermediation, a stark contrast to many of our peers.

正如傑森也指出的那樣，我們目前的投資組合比以往任何時候都更具防禦性。我們歷來對可能更容易受到人工智慧去中介化影響的軟體型企業保持低配，這與我們許多同行形成了鮮明對比。

Over the last several months, we have taken proactive steps to further reduce that exposure and rotate capital into investments with stronger downside protection. As of the end of February, investments in our corporate credit portfolio that we believe fall in the category of software businesses comprise less than 4% of our portfolio.

在過去的幾個月裡，我們採取了積極措施，進一步降低這種風險敞口，並將資金輪換到具有更強下行保護的投資中。截至 2 月底，我們認為屬於軟體企業類別的企業信貸投資組合占我們投資組合的比例不到 4%。

From a capital deployment perspective, we are investing at a measured approach in a credit market where spreads in investment grade and high yield ended 2025 in the14th and 4th percentile respectively. We saw some compression in private credit spreads over the course of the year as well. We are prudently deploying capital, prioritizing senior secured positions with durable cash flows while continuing to monetize select positions.

從資本部署的角度來看，我們採取穩健的投資方式，在信貸市場中，投資等級債券和高收益債券的利差在 2025 年底分別處於第 14 和第 4 個百分位。今年我們也看到私人信貸利差有所縮小。我們正在謹慎地部署資本，優先考慮具有穩定現金流的優先擔保頭寸，同時繼續將部分頭寸變現。

More broadly, in the fourth quarter of 2025, we improved credit quality in the portfolio, strengthened our balance sheet, and exited the year with ample liquidity. We have also enhanced our capital structure by opportunistically repurchasing approximately $18.7 million of our GECCO notes in the fourth quarter and through the end of last week at or below par plus accrued interest.

更廣泛地說，在 2025 年第四季度，我們提高了投資組合的信貸質量，加強了資產負債表，並以充足的流動性結束了這一年。我們也透過在第四季及上週末以面額或低於面額的價格（加上應計利息）回購約 1,870 萬美元的 GECCO 票據，增強了我們的資本結構。

As of the end of last week, we had $39 million of notes outstanding against $16 million of cash, $50 million of revolver capacity, and $14 million of liquid exchange tradable assets, providing more than sufficient liquidity to address the upcoming. Maturity of the balance of these notes in the coming months. To that end, we called approximately half of our remaining GECCO bonds on Friday, which brings our pro forma debt to equity ratio to approximately 1.5 times, consistent with our historical average leverage level.

截至上週末，我們有 3,900 萬美元的未償票據，現金 1,600 萬美元，循環信貸額度 5,000 萬美元，以及 1,400 萬美元的流動可交易資產，為應對即將到來的挑戰提供了充足的流動性。這些票據的剩餘部分將在未來幾個月到期。為此，我們在周五贖回了剩餘 GECCO 債券的大約一半，這使得我們的備考債務權益比率約為 1.5 倍，與我們歷史平均槓桿水平一致。

Finally, as previously mentioned, we also strengthened our investment team with the addition of Chris Croteau as Head of Research. Chris is a seasoned investor with experience across syndicated credit and direct lending. He has played a key role in our portfolio underwriting and capital deployment, and we are very pleased to have him on board.

最後，如同前面提到的，我們還聘請了 Chris Croteau 擔任研究主管，從而加強了我們的投資團隊。克里斯是一位經驗豐富的投資者，在銀團貸款和直接貸款方面都有經驗。他在我們的投資組合承銷和資本部署方面發揮了關鍵作用，我們非常高興他能加入我們。

With that, I'll turn it over to Chris to introduce himself and provide additional insight into the portfolio.

接下來，我將把麥克風交給克里斯，讓他自我介紹並對投資組合提供更多見解。

Thanks, Matt. First, a bit of background on me. I've spent over 25 years in leveraged credit, including serving as Head of Credit for North America for a large public asset manager and acting as agent on private credit transactions. That experience shapes the underwriting rigor and discipline we are executing at GECC.

謝謝你，馬特。首先，簡單介紹一下我自己。我在槓桿信貸領域工作了超過 25 年，曾擔任一家大型上市資產管理公司北美信貸主管，並擔任私人信貸交易的代理人。這種經驗塑造了我們在GECC執行的承保嚴謹性和紀律性。

Our investment framework is built on three core pillars: downside protection, portfolio granularity, and durable underwriting edge. First, we anchor every underwriting decision to downside outcomes, and credit investing, protecting NEB, and avoiding permanent capital impairment are paramount.

我們的投資框架建立在三大核心支柱之上：下行保護、投資組合精細化和持久的承保優勢。首先，我們將每項承保決策都與下行風險掛鉤，信用投資、保護 NEB 以及避免永久性資本損失至關重要。

Second, portfolio granularity serves as a key risk management tool. We utilize broadly syndicated credit intentionally to enhance liquidity and diversification while deliberately maintaining smaller position size. This allows us to be nimble and reduce exposure when our thesis plays out or when compensation for risk no longer justifies the capital at work. Liquidity and granularity work hand in hand.

其次，投資組合的精細化是重要的風險管理工具。我們有意利用廣泛的銀團貸款來增強流動性和多元化，同時刻意保持較小的部位規模。這樣一來，當我們的投資理念得以實現，或者風險補償不再能彌補投入的資本時，我們就可以靈活地減少風險敞口。流動性和粒度相輔相成。

Third, investments are underwritten collaboratively with management and sector analysts prior to investment committee review. We are concentrating capital in areas where our underwriting advantage is durable, supported by deep sector expertise and aligned strategic partners.

第三，投資項目在提交投資委員會審查前，會與管理階層和產業分析師合作承銷。我們將資本集中投入到我們承保優勢持久、擁有深厚產業專業知識和策略夥伴的領域。

We apply this underwriting intensity to our entire corporate credit portfolio. During the quarter we sold or reduced 18 credit positions. He began the quarter with 61 corporate credits. So that means nearly 30% of the portfolio by number was actively repositioned. Those actions included reductions in second lean exposure. Which now represents approximately 7% of the corporate portfolio, reflecting stronger structural positioning and improved portfolio granularity.

我們將這種承保力度應用於我們所有的企業信貸組合。本季我們出售或減少了 18 個信貸部位。本季初他擁有 61 個企業學分。這意味著近 30% 的投資組合（按數量計）進行了積極的重新配置。這些措施包括減少二次精益化暴露。目前約占公司投資組合的 7%，反映出更強大的結構性定位和更精細的投資組合細分。

At the same time, we added 12 new broadly syndicated credit positions with an average size of approximately $2 million, reinforcing smaller and more diversified exposures in liquid markets. In private credit in the fourth quarter, we closed one transaction with mid-teens yield profile and warrant participation.

同時，我們新增了 12 項規模約為 200 萬美元的廣泛銀團信貸頭寸，從而加強了在流動性市場中規模較小、更加多元化的風險敞口。在第四季的私募信貸領域，我們完成了一筆殖利率約15%的交易，並參與了認股權證計畫。

Our private credit pipeline remains active with aligned strategic partners where incentives, information flow, and governance oversight are strongest. While we continue to expand that funnel, we remain highly selective in light of current spread level. We continue to engage in active dialogue with our CLO investment partners to identify emerging credit trends early and to enhance idea generation across the platform.

我們與策略夥伴保持著密切的私人信貸管道，這些合作夥伴在激勵機制、資訊流通和治理監督方面都最為強大。雖然我們會繼續擴大管道，但鑑於目前的擴散水平，我們仍會保持高度選擇性。我們繼續與 CLO 投資夥伴積極對話，以便及早發現新興信貸趨勢，並增強整個平台上的創意產生。

Our objective is consistent, attractive, risk adjusted returns driven by disciplined capital allocation, senior positioning in the capital structure and steadfast protection of NAV. We believe robust underwriting intensity, greater portfolio granularity, aligned partnerships, and active monitoring positions the portfolio for more durable performance across market cycles.

我們的目標是透過嚴格的資本配置、在資本結構中的優先地位和對淨值的堅定保護，實現持續、有吸引力且經風險調整後的回報。我們相信，強有力的承保力度、更精細的投資組合劃分、協調一致的合作夥伴關係以及積極的監控，能夠使投資組合在市場週期中取得更持久的業績。

Now I'll turn the call over to Michael Keller to discuss Specialty Finance.

現在我將把電話交給麥可凱勒，讓他來討論專業金融問題。

Thanks, Chris. Great Elm Specialty Finance delivered a solid fourth quarter, distributing approximately $287,000 to GECC. We continue to execute on GESF's strategic transformation, successfully repositioning the platform for future growth and enhanced profitability.

謝謝你，克里斯。Great Elm Specialty Finance 在第四季業績穩健，向 GECC 分配了約 287,000 美元。我們繼續執行GESF的策略轉型，成功地重新定位平台，以實現未來的成長和更高的獲利能力。

At Great Elm Commercial Finance, which now offers traditional asset-based lending solutions across a broad range of industries, we continue working with lenders to scale the platform. Asset-based lending, when underwritten conservatively and structured properly, can provide attractive risk adjusted returns with meaningful downside protections. As we scale the platform, operating leverage has begun to take hold, driving meaningful improvement over the past several quarters. In addition, our pipeline of potential transactions remains robust.

Great Elm Commercial Finance 目前為各行各業提供傳統的資產抵押貸款解決方案，我們將繼續與貸款機構合作，擴大平台規模。資產抵押貸款，如果承銷保守、結構合理，可以提供具有吸引力的風險調整後收益和有效的下行保護。隨著平台規模的擴大，營運槓桿效應開始顯現，並在過去幾季中推動了顯著的業績提升。此外，我們潛在的交易項目儲備依然充足。

As part of the strategic initiatives implemented in 2025, Great Elm Healthcare Finance is now better positioned for sustained profitability and generated solid distributable income in the fourth quarter. The GEHF platform is supported by a strong pipeline of actionable opportunities which we expect to drive continued profitability into 2026.

作為 2025 年實施的策略性舉措的一部分，Great Elm Healthcare Finance 現在更有能力實現持續盈利，並在第四季度產生了穩健的可分配收入。GEHF平台擁有強大的可操作機會儲備，我們預計這些機會將推動獲利能力持續成長至2026年。

Meanwhile, Prestige, our invoice financing business, continues to perform exceptionally well. As a reminder, Prestige provides spot invoice financing solutions and has consistently demonstrated the ability to generate attractive returns on equity over the course of the year.

同時，我們的應收帳款融資業務 Prestige 持續表現出色。再次提醒，Prestige 提供即期應收帳款融資解決方案，並且已持續證明其能夠在一年中產生可觀的股本回報。

In summary, as we move through 2026, we believe we have built a significantly enhanced specially financed platform aligned with our long-term growth objectives. We are seeing the benefits of our strategic repositioning take hold across all platforms and remain confident in our ability to generate improved returns for shareholders going forward.

總而言之，展望 2026 年，我們相信我們已經建立了一個顯著增強的專案融資平台，與我們的長期成長目標一致。我們看到策略調整帶來的好處正在各個平台上顯現，我們仍然有信心在未來為股東創造更高的回報。

Now I'd like to turn the call over to Keri Davis to go over our financial performance.

現在我想把電話交給凱莉戴維斯，讓她來介紹我們的財務表現。

Thanks, Mike. I'll go over our financial highlights now, but we invite all of you to review our press release, accompanying presentation, and SEC filing for greater detail. During the fourth quarter, GECC generated NII of $4.4 million or $0.31 per share, compared to $2.4 million or $0.20 per share in the third quarter of 2025. The increase in NII was driven primarily by higher CLO JV income and increased earnings from deployed capital.

謝謝你，麥克。現在我將簡要介紹我們的財務亮點，但我們邀請大家查閱我們的新聞稿、隨附的簡報和提交給美國證券交易委員會的文件，以了解更多詳情。第四季度，GECC 產生的淨利息收入為 440 萬美元，即每股 0.31 美元，而 2025 年第三季為 240 萬美元，即每股 0.20 美元。淨利息收入的成長主要得益於 CLO 合資企業收入的增加和已投入資本利得的增加。

Our net assets as of December 31, 2025, were $112.9 million or $8.07 per share as compared to $140.1 million or $10.01 per share as of September 30, 2025. Details for the quarter over quarter change in NAV can be found on slide 12 of the investor presentation.

截至 2025 年 12 月 31 日，我們的淨資產為 1.129 億美元，即每股 8.07 美元，截至 2025 年 9 月 30 日，我們的淨資產為 1.401 億美元，即每股 10.01 美元。有關淨資產值環比變化的詳細情況，請參閱投資者簡報的第 12 頁。

Net assets pro forma for the incentive fee waiver previously noted were $8.23 per share as of December 31, 2025. Our balance sheet remains strong and liquid. GECC's asset coverage ratio was 158.1% on December 31, 2025, as compared to 168.2% as of September 30, 2025. Pro forma for the incentive fee waiver in the called baby bonds, our asset coverage ratio was 166% as of December 31st, 2025.

截至 2025 年 12 月 31 日，扣除先前提及的激勵費用豁免後的淨資產為每股 8.23 美元。我們的資產負債表依然穩健且流動性充足。截至 2025 年 12 月 31 日，GECC 的資產覆蓋率為 158.1%，而截至 2025 年 9 月 30 日，該比率為 168.2%。考慮到已贖回的嬰兒債券的激勵費用豁免，截至 2025 年 12 月 31 日，我們的資產覆蓋率為 166%。

As of December 31, 2025, total debt outstanding at par value was $194.4 million and we had no borrowings on our $50 million revolver, providing meaningful liquidity and flexibility. Cash and money market fund investments totaled approximately $5 million. Our Board of Directors approved a quarterly dividend of $0.30 per share for the first quarter of 2026, equating to a 19.2% annualized yield on GECC's February 27, 2026, closing price of $6.26.

截至 2025 年 12 月 31 日，未償債務總額（以面額計算）為 1.944 億美元，而我們 5,000 萬美元的循環信貸額度沒有借款，這提供了重要的流動性和靈活性。現金和貨幣市場基金投資總額約 500 萬美元。我們的董事會批准了 2026 年第一季每股 0.30 美元的季度股息，相當於 GECC 2026 年 2 月 27 日收盤價 6.26 美元的年化收益率為 19.2%。

I'll now hand the call back to Matt.

現在我把電話轉回給馬特。

Thanks, Keri. We continued to strengthen the portfolio during the quarter by rotating capital into senior secured investments and exiting credits with weaker downside protection. Our CLO joint venture is a meaningful contributor to earnings and provides added portfolio diversification.

謝謝你，凱瑞。本季我們持續加強投資組合，將資金輪調到優先擔保投資中，並退出下行保護較弱的信貸產品。我們的 CLO 合資企業對收益做出了重要貢獻，並增加了投資組合的多元化。

The portfolio today is well positioned to generate sustainable income in the year to come. A proprietary sourcing platform continues to be a key differentiator, which highlights our ability to generate attractive returns through unique opportunities. Non-accruals remain below 1% in the portfolio, reflecting the progress we've made improving overall credit quality.

該投資組合目前狀況良好，預計在未來一年內產生可持續的收入。專有的採購平台仍然是一項關鍵的差異化優勢，凸顯了我們透過獨特的機會創造可觀回報的能力。投資組合中的非應計項目仍低於 1%，這反映了我們在提高整體信貸品質方面取得的進展。

While the broader market remains uncertain, we remain disciplined in deploying capital and focused on protecting NAV while growing earnings. We believe our strong liquidity position, improving income profile, diversified portfolio, and disciplined investment approach positioned GECC well as we move through 2026.

儘管大盤仍不明朗，但我們仍將保持資本部署的紀律性，專注於在提高盈利的同時保護淨資產值。我們相信，憑藉我們強勁的流動性、不斷改善的收入狀況、多元化的投資組合和嚴謹的投資方法，GECC 在邁向 2026 年的旅程中處於有利地位。

I'll now hand it over to the operator for questions.

現在我將把電話交給接線員，以便他/她回答問題。

(Operator Instructions) Thank you. Erik Zwick, Lucid Capital Markets.

（操作說明）謝謝。Erik Zwick，Lucid Capital Markets。

Thanks. Good morning, everyone. Wanted to start with a question just in terms of the portfolio, repositioning that Chris was describing the actions that you have contemplated. Are they complete at this time? Or are there potentially more actions to reposition and maybe de-risk the portfolio? Is there potentially kind of more that you could undertake here in this quarter or in future quarters?

謝謝。各位早安。我想先問一個關於投資組合調整的問題，克里斯剛剛描述的那些你考慮過的行動。目前它們都完成了嗎？或者，還有更多措施可以重新調整投資組合，降低風險？本季度或未來幾個季度，您是否還有可能開展更多類似的工作？

Good morning, Chris -- I'm sorry, good morning, Erik, and thanks for the question here. I would say we took a lot of actions in the quarter as Chris highlighted to exit out of names that we have perceived more downside risk and rotate into higher quality credits on a liquid basis.

早安，克里斯——抱歉，早安，埃里克，感謝你的提問。我想說，正如 Chris 所強調的，我們在本季度採取了很多措施，例如退出我們認為下行風險較大的股票，並轉向流動性更強的高品質信貸產品。

And further, I highlighted, over the last few months we have, looked to de-risk on the portfolio of our software side of the business. I'd say at the end of the year when we looked at the software component it was about 7% of the portfolio and we're right now around 4%. So less than 4% I would say. So I think right now we have a very clean portfolio on the corporate credit side of things, and we've taken a lot of actions to clean it up.

此外，我還強調，在過去的幾個月裡，我們一直在努力降低軟體業務組合的風險。我想說，在年底我們審視軟體部分時，它大約佔產品組合的 7%，而現在大約是 4%。所以我覺得不到4%。所以我認為目前我們在企業信貸方面擁有非常乾淨的投資組合，我們已經採取了很多措施來清理它。

Thanks, Matt. And then just the comments around volatility in the markets potentially creating opportunity, you certainly have ample liquidity today wondering if you could just frame for me how you view your pipeline today and where you're seeing the best risk adjusted opportunities for new investments?

謝謝你，馬特。還有關於市場波動可能創造機會的評論，您目前確實擁有充足的流動性，我想知道您能否向我介紹一下您目前的投資項目情況，以及您認為哪些方面具有最佳的風險調整後投資機會？

So on the pipeline, we continue to evaluate private credit opportunities, and we're very selective and evaluate the deals where we have strong covenants alongside strategic partners where the incentives are aligned.

因此，在後續專案中，我們繼續評估私募信貸機會，我們非常謹慎，只評估那些與我們擁有強大契約、且利益一致的策略夥伴的交易。

And then, secondly, as I touched on for a minute in the software space, we are underweight software in the space relative to other BDCs and the US loan market. In general, I think BDC's exposure is well over 20% according to Morgan Stanley Research, and the US loan market is up 16%.

其次，正如我在軟體領域簡要提到的，相對於其他 BDC 和美國貸款市場，我們在軟體領域的配置比例偏低。總的來說，我認為根據摩根士丹利研究公司的數據，BDC 的風險敞口遠超 20%，而美國貸款市場上漲了 16%。

We are evaluating lots of opportunities in the original market, especially with the current volatility in the geopolitical events here. And we continue to be very focused and rigorously looking at downside protection across all industries in which we invest, not looking to catch any falling knives here. In a wave of opportunities as they come, but this is obviously a dynamic market environment right now, and we have ample liquidity to manage both our maturities and take advantage of any opportunities in names where we have, as Chris mentioned, durable edge in relationships with sponsors, management teams, et cetera.

我們正在評估原有市場中的許多機會，尤其是在當前地緣政治事件動盪的情況下。我們將繼續非常專注且嚴格地研究我們投資的所有行業的下行風險保護措施，而不是試圖在這裡接任何下落的刀子。機會如潮水般湧來，但顯然目前的市場環境瞬息萬變，我們擁有充足的流動資金來管理到期債務，並抓住任何機會，投資那些我們擁有持久優勢的公司，正如克里斯提到的那樣，我們在與發起人、管理團隊等的關係方面具有優勢。

And then is private credit where you're seeing greater opportunities there relative to additional CLO investments or BSL investments?

那麼，相對於額外的 CLO 投資或 BSL 投資，您是否認為私募信貸領域有更大的機會？

We've evaluated many private credit opportunities over the course of the year, and I would say that we are very selective in executing on them, focused on the covenants on both maintenance covenants from a financial perspective as well as making sure the incentives are aligned. So it changes over time for us as we look at the marketplace and it shifts and right now there's a shift. So I think we are very real time, day by day, looking at where the public markets are as well as the private markets. We have a very robust liquidity position in both cash for full access to a revolver and kind of exchange traded assets.

今年我們評估了許多私人信貸機會，我認為我們在執行這些機會時非常謹慎，我們不僅關注財務方面的維護性契約，還關注激勵機制是否一致。所以隨著時間的推移，當我們觀察市場時，情況也會發生變化，而現在正處於一種轉變之中。所以我認為我們每天都在即時關注公開市場和私人市場的動態。我們擁有非常充足的流動性，包括可用於循環信貸的現金以及各種交易所交易資產。

And then just thinking about the stock repurchase authorization you have outstanding, just how do you weigh the relative opportunities between a new investments for the portfolio versus, buying back stock at this juncture?

然後，考慮到你還有未執行的股票回購授權，你如何權衡此時此刻進行新的投資組合投資與回購股票之間的相對機會？

It's something that we constantly evaluate, and there's lots of factors that go into that, based on both the portfolio opportunities in the market, in discussions with the Board. So lots of factors go into making that decision, but we actively monitor the stock -- our stock price, as well as the opportunities set in the marketplace.

這是我們不斷評估的事情，其中​​涉及許多因素，包括市場上的投資組合機會以及與董事會的討論。因此，做出這個決定需要考慮很多因素，但我們會積極關注股票——我們的股價，以及市場上的機會。

Matt, it's Jason. Maybe I can jump in. And Erik, we, I mean, as the Board, we are looking at creating the best ways to create shareholders of value. So right, we're going to constantly look at the stock price versus NAV and decide where we're better off. Obviously buying back stock is riskless as opposed to putting cash into a credit where there's a level of risk. So we will be looking at that daily and have the opportunity to create value.

馬特，我是傑森。或許我可以加入。艾瑞克，我們，我的意思是，作為董事會，我們正在研究如何創造最佳方式來為股東創造價值。沒錯，我們會不斷觀察股價與淨值，並決定哪種方式對我們比較有利。顯然，回購股票是無風險的，而將現金投入信貸則有一定的風險。因此，我們將每天關注此事，並有機會創造價值。

Thanks. And just last one for me. I know in 2025 the contribution from the CLO investments was a little bit lumpy as that got ramped up. Are we at the point now where that the contribution would be a little bit more even quarter to quarter? Is there still some variability expected as those cash flow payments come in?

謝謝。這是我最後一個問題了。我知道，隨著 CLO 投資規模的擴大，2025 年 CLO 投資的貢獻出現了一些波動。現在是否到了季度間貢獻額更加均衡的地步了？隨著現金流款項的陸續到賬，是否仍會出現一些波動？

I would say there is still some variability as cash flow payments do come in, but it's -- I would expect it to be less lumpy than it was over the course of 2024 and 2025.

我認為，由於現金流支付仍在進行，因此仍然存在一些波動，但我預計它會比 2024 年和 2025 年期間波動性要小。

Thanks for taking my questions today.

謝謝您今天回答我的問題。

Thank you.

謝謝。

(Operator Instructions) Alan Denzer, Private Investor.

（操作說明）艾倫·丹澤，私人投資者。

Yes, hello. I just heard my question answered pretty much regarding stock buyback program that you announced. And I would just urge you to take a look at the economics of that being that you might find being more aggressive on this program behooves you. So I urge you to -- given the fact that you expect things to stabilize in the marketplace NAV wise. To Really go forward with a clear eye about the value that is inherent in buying back your stock. Thank you.

是的，你好。關於您宣布的股票回購計劃，我的問題基本上已經得到了解答。我只想敦促你仔細考慮其中的經濟效益，你可能會發現，在這個計畫中採取更積極的策略對你是有利的。鑑於您預期市場淨值方面會趨於穩定，我強烈建議您這樣做。要真正以清醒的頭腦看待回購股票所蘊含的價值。謝謝。

Alan, thank you. I can promise you that the Board is taking this very seriously and looking at this every day.

艾倫，謝謝你。我可以向你保證，董事會非常重視此事，並且每天都在關注此事。

Thank you. There are no further questions at this time. I would like to hand the floor back over to Jason Reese, Executive Chairman, for closing remarks.

謝謝。目前沒有其他問題了。我謹將發言權交還給執行主席傑森·里斯，請他作總結發言。

Thank you again for joining us today. We're closing the period with a strong governance framework, enhanced oversight, and a portfolio that is meaningfully more resilient. Our priorities are clear protect capital, generate sustainable NII, and methodically rebuild NAV over time through discipline, credit, execution.

再次感謝您今天蒞臨。我們以強大的治理框架、加強的監督和更具韌性的投資組合結束了這段時期。我們的首要任務很明確：保護資本，創造可持續的淨利息收入，並透過紀律、信貸和執行力，逐步重建淨值。

The actions we've taken, waiving incentive fees, strengthening our credit leadership, enhancing board engagement, improving portfolio quality, and maintaining liquidity reflect a clear commitment to accountability and long-term value creation. We believe GECC is operating from a position of balance sheet strength with the flexibility and underwriting discipline required to navigate uncertainty and capitalize on attractive opportunities as they emerge. We appreciate your continued support and look forward to updating you on our progress next quarter. Thank you.

我們採取的行動，包括免除激勵費用、加強信貸領導地位、提高董事會參與度、改善投資組合品質以及保持流動性，都體現了我們對問責制和長期價值創造的明確承諾。我們相信，GECC 憑藉著雄厚的資產負債表實力，以及應對不確定性和掌握機會所需的靈活性和承保紀律，能夠穩步發展。感謝您一直以來的支持，我們期待在下個季度向您報告我們的進展。謝謝。

This concludes today's conference. We thank you again for your participation. You may disconnect your lines at this time.

今天的會議到此結束。再次感謝您的參與。您可以在此時斷開線路。