Great Elm Capital Corp. (GECC): Business Model Canvas

Key Partnerships

Great Elm Capital Corp. (GECC) has established key partnerships with various entities to support its investment activities and enhance the overall value proposition for its stakeholders. These partnerships play a crucial role in shaping the success of GECC's business model.

• Investment partners: GECC collaborates with a network of investment partners including institutional investors, family offices, and high-net-worth individuals. These partners provide the capital necessary for GECC to make strategic investments in promising companies and generate attractive returns.
• Financial institutions: GECC works closely with financial institutions such as banks and asset managers to access debt financing, credit facilities, and other financial products. These partnerships help GECC optimize its capital structure and create value for its portfolio companies.
• Portfolio companies: GECC forms partnerships with its portfolio companies to drive growth, foster innovation, and maximize shareholder value. By collaborating closely with portfolio companies, GECC can provide strategic guidance, operational support, and access to its extensive network of resources.
• Advisory services providers: GECC engages with advisory services providers including legal firms, accounting firms, and consulting firms to obtain expert advice on various aspects of its business operations. These partnerships enable GECC to navigate complex regulatory environments, mitigate risks, and optimize its investment strategies.

Key Activities

Great Elm Capital Corp. (GECC) engages in several key activities to drive its business model. These activities include:

• Debt Investment: GECC identifies and invests in debt securities of middle-market companies. This involves evaluating credit risk, conducting due diligence, and structuring appropriate debt instruments.
• Equity Investment: In addition to debt investments, GECC also makes equity investments in portfolio companies. This may involve taking minority stakes in companies or participating in private equity transactions.
• Portfolio Management: GECC actively manages its investment portfolio to optimize returns and mitigate risks. This includes monitoring the performance of portfolio companies, rebalancing the portfolio as needed, and making strategic investment decisions.
• Financial Analysis and Reporting: GECC conducts thorough financial analysis to assess the financial health and performance of potential investments. The company also provides regular reporting to shareholders and stakeholders to communicate the financial results and performance of its investment portfolio.

These key activities are fundamental to GECC's business model, enabling the company to effectively invest in middle-market companies, generate returns for shareholders, and maintain a diversified and well-managed investment portfolio.

Key Resources

Great Elm Capital Corp. (GECC) relies on several key resources to effectively execute its business model:

• GECC's investment portfolio is a crucial resource that allows the company to generate returns for its shareholders. The diversified portfolio includes a mix of debt and equity investments in various industries, providing stability and potential for growth.
• By carefully selecting investments and constantly monitoring their performance, GECC is able to maximize returns while managing risk effectively.

• GECC's experienced management team is another invaluable resource that drives the company's success. With expertise in finance, investment analysis, and business strategy, the team is well-equipped to make informed decisions and navigate complex market conditions.
• By leveraging the diverse skill sets and experience of its team members, GECC is able to identify and capitalize on lucrative investment opportunities.

• GECC's robust financial expertise is a key resource that enables the company to assess potential investments, conduct due diligence, and manage its portfolio effectively.
• By analyzing financial statements, assessing risk factors, and conducting thorough research, GECC is able to make well-informed investment decisions that align with its strategic goals.

• GECC's extensive industry networks contribute significantly to the success of the company by providing valuable insights, connections, and opportunities within various sectors.
• By cultivating relationships with industry experts, partners, and stakeholders, GECC is able to stay informed about market trends, access exclusive investment opportunities, and build strategic partnerships that drive growth.

Value Propositions

Great Elm Capital Corp. (GECC) offers a unique value proposition to investors looking to access the mid-market investment landscape. Our specialized focus on mid-market investments allows us to uncover high-yield opportunities that may be overlooked by larger investment firms.

At GECC, we prioritize risk-adjusted returns, ensuring that our investors can achieve their financial goals while minimizing potential downside. Our experienced team conducts thorough due diligence to identify investments with attractive risk profiles, providing a level of security that is essential in today's market environment.

Furthermore, GECC maintains a diverse investment portfolio, spanning across industries and sectors to mitigate concentration risk. This diversification strategy allows us to capture opportunities in various market conditions, providing stability and resilience to our investors' portfolios.

• Specialized in mid-market investments: GECC's expertise in the mid-market segment allows us to capitalize on niche opportunities that larger firms may overlook.
• Focus on high-yield opportunities: Our team identifies investments with the potential for attractive returns, ensuring that investors can maximize their profit potential.
• Risk-adjusted returns: GECC prioritizes risk management, delivering consistent returns while protecting investors from downside risk.
• Diverse investment portfolio: With a broad range of investments across industries and sectors, GECC offers diversification to enhance portfolio stability and resilience.

Customer Relationships

Great Elm Capital Corp. (GECC) understands the importance of building and maintaining strong relationships with its customers. The company values long-term investor relations and strives to foster trust and loyalty through transparent communication and strategic advisement.

• Long-term investor relations: GECC focuses on establishing long-lasting relationships with its investors by providing consistent returns and excellent customer service. The company prioritizes the needs and goals of its customers to ensure their satisfaction and loyalty.
• Transparent communication: GECC believes in open and honest communication with its customers. The company provides regular updates on performance, market conditions, and investment strategies to keep investors informed and engaged. GECC encourages feedback and questions from customers to maintain transparency and trust.
• Strategic advisement: GECC offers strategic advisement to help customers make informed investment decisions. The company's experienced team provides personalized recommendations and guidance based on each customer's financial goals and risk tolerance. GECC aims to empower customers to make confident investment choices that align with their objectives.
• Regular performance updates: GECC provides regular performance updates to keep customers informed about the progress of their investments. The company reports on key metrics, market trends, and portfolio performance to demonstrate transparency and accountability. GECC values feedback from customers and uses performance data to drive continuous improvement and customer satisfaction.

Channels

The channels through which Great Elm Capital Corp. (GECC) operates and communicates with its investors and stakeholders play a crucial role in the success of the business. By utilizing a variety of channels, GECC is able to effectively reach its target audience and maintain strong relationships with key stakeholders.

• Direct investment relations: GECC's direct investment relations team works closely with investors to provide them with the information they need to make informed decisions about their investments. This direct contact helps to build trust and transparency with investors.
• Company website: GECC's website serves as a central hub for information about the company, its portfolio, and its financial performance. Investors can access important documents, such as annual reports and investor presentations, through the website.
• Financial news outlets: GECC engages with financial news outlets to share important announcements and updates about the company. By leveraging these outlets, GECC is able to reach a broader audience of potential investors and stakeholders.
• Investor meetings and reports: GECC regularly holds investor meetings and provides reports to keep investors informed about the company's performance and strategic initiatives. These meetings offer an opportunity for investors to ask questions and provide feedback directly to the company.

Customer Segments

Institutional Investors: Great Elm Capital Corp. targets institutional investors such as hedge funds, pension funds, and other investment firms. These entities typically have large sums of capital to invest and seek ways to diversify their portfolios with alternative assets like the ones offered by GECC.

Individual Investors: GECC also caters to individual investors who are looking to gain exposure to alternative investments through a reliable and established platform. With a focus on income generation and capital preservation, individual investors can benefit from the expertise and resources provided by GECC.

Investment Funds: Investment funds that are looking to enhance their portfolio returns with a mix of secured and unsecured corporate loans, collateralized loan obligations, and other credit-focused strategies can also find value in partnering with GECC. These funds may include private equity funds, distressed debt funds, and credit funds.

Family Offices: Family offices, which manage the financial affairs of wealthy families, can benefit from the strategies offered by GECC to preserve and grow their wealth over time. By diversifying their investments with alternative assets, family offices can achieve their financial goals while managing risk effectively.

• Great Elm Capital Corp. offers a range of credit-focused strategies that cater to the needs of different customer segments
• The company’s expertise in sourcing, underwriting, and managing credit assets provides value to institutional investors, individual investors, investment funds, and family offices
• GECC’s tailored approach to structuring investments ensures that each customer segment receives solutions that align with their investment objectives

Cost Structure

Management and Incentive Fees: Great Elm Capital Corp. (GECC) charges management and incentive fees to its investors. The management fee is typically a percentage of the assets under management, while the incentive fee is a portion of the profits generated by the investments.

Operating Expenses: GECC incurs various operating expenses to run its business efficiently. These expenses include salary and benefits for employees, office rent, utilities, technology infrastructure, legal and accounting fees, marketing and advertising costs, and other general overhead expenses.

Interest Expenses: As a business development company (BDC), GECC borrows funds to invest in its portfolio companies. These funds come with interest expenses, which need to be paid periodically. The interest expenses impact the overall profitability of GECC's investments.

Performance-based Expenses: In addition to management and incentive fees, GECC may incur performance-based expenses based on the performance of its investments. These expenses may include additional incentive fees or bonuses paid to the investment team or third-party advisors based on certain performance criteria.

• Management and incentive fees
• Operating expenses
• Interest expenses
• Performance-based expenses

Revenue Streams

Great Elm Capital Corp (GECC) generates revenue through various streams. These revenue streams are:

• Interest income from debt investments: GECC invests in a diversified portfolio of debt investments, including senior secured loans, unitranche loans, and mezzanine debt. The interest income generated from these investments forms a significant portion of GECC's revenue stream.
• Dividend income from equity holdings: In addition to debt investments, GECC also holds equity positions in certain portfolio companies. The dividend income received from these equity holdings contributes to GECC's revenue stream.
• Capital gains on investments: GECC may realize capital gains when it sells its investments at a higher price than what it paid for them. These gains add to GECC's revenue stream.
• Fee-related earnings from advisory services: GECC may also earn fees from providing advisory services to portfolio companies, such as management consulting or financial restructuring. These fee-related earnings contribute to GECC's revenue stream.