Eric Zwick's questions to Great Elm Capital (GECC) leadership • Q2 2025
Question
The analyst asked for details on a specific dividend from an insurance investment, the company's strategy for its CoreWeave investment post-IPO, the relative attractiveness of various growth opportunities, and the reasons for moving the Maverick Gaming and Del Monte investments to non-accrual status.
Answer
The company clarified that the insurance dividend is an annual event contributing about $1.6-$1.7 million to NII. The decision to liquidate the CoreWeave investment rests with the General Partner after a lockup period expires. For growth, the focus has shifted to private debt transactions due to tightening in the secondary market. The Maverick Gaming non-accrual was prompted by its bankruptcy filing, and a portion of it and the Del Monte investment may return to accrual status through DIP financing roll-ups.