gecc-8k_20190813.htm

 

 

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 13, 2019

 

Great Elm Capital Corp.

(Exact name of Registrant as Specified in Its Charter)

 

 

Maryland

814-01211

81-2621577

(State or Other Jurisdiction

of Incorporation)

(Commission File Number)

(IRS Employer

Identification No.)

 

 

 

800 South Street, Suite 230, Waltham, MA

 

02453

(Address of Principal Executive Offices)

 

(Zip Code)

Registrant’s Telephone Number, Including Area Code: (617) 375-3006

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock, $0.01 par value

GECC

Nasdaq Global Market

6.50% Notes due 2022

GECCL

Nasdaq Global Market

6.75% Notes due 2025

GECCM

Nasdaq Global Market

6.50% Notes due 2024

GECCN

Nasdaq Global Market

 

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

 

 

 

 


 


 

Item 2.02 Results of Operations and Financial Condition.

 

On August 13, 2019, the registrant issued the press release and published a presentation furnished as exhibits 99.1 and 99.2, respectively, to this report.

 

The foregoing information (including the exhibits hereto) is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

 

 Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits.

 

The following exhibits are furnished with this report but shall not be deemed filed:

  

 

 

 

Exhibit

Number

  

Description

99.1

  

Press release, dated August 13, 2019.

99.2

 

Presentation, dated August 13, 2019.

 

 


 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

 

 

 

 

 

GREAT ELM CAPITAL CORP.

 

 

 

Date:  August 13, 2019

 

/s/ Keri A. Davis

 

 

By:

 

Keri A. Davis

 

 

Title:

 

Interim Chief Financial Officer

 

 

 

 

gecc-ex991_119.htm

Exhibit 99.1

 

Great Elm Capital Corp. Announces SECOND Quarter 2019 Financial Results; SECOND Quarter Net Investment Income of $0.29 Per Share; BOARD SET FOURTH QUARTER 2019 DISTRIBUTION OF $0.083 PER SHARE PER MONTH; ISSUED NEW SENIOR UNSECURED NOTES

 

WALTHAM, MA, August 13, 2019 – Great Elm Capital Corp. (“we,” “us,” “our” or “GECC”), (NASDAQ: GECC), today announced its financial results for the quarter ended June 30, 2019.

 

FINANCIAL HIGHLIGHTS(1)

 

 

Net investment income (“NII”) for the quarter ended June 30, 2019 was approximately $3.0 million, or $0.29 per share, equating to 1.2x distribution coverage for the quarter.

 

In August 2019, the Board of Directors (the “Board”) set monthly distributions of $0.083 per share for the fourth quarter of 2019, representing a yield of approximately 9.7% on June 30, 2019 net asset value (“NAV”).

 

Net assets on June 30, 2019 were approximately $103.6 million. NAV per share on June 30, 2019 was $10.30, as compared to NAV per share of $10.89 on March 31, 2019, driven primarily by unrealized losses in certain of our investments in Avanti Communications Group, plc

 

We had approximately $0.4 million of net realized gains during the quarter ended June 30, 2019, or approximately $0.04 per share, and net unrealized depreciation of approximately $7.8 million, or approximately $0.76 per share.

 

Unrealized depreciation in the Avanti Communications Group, plc investments accounted for $6.7 million of the $7.8 million net unrealized loss during the quarter

 

During the quarter ended June 30, 2019, we invested approximately $61.7 million across 15 investments(2), including three new issuers. During the quarter ended June 30, 2019, we monetized (in part or in full) approximately $36.6 million across 16 investments(3).

 

Strong performance from our investment in the equity interests of Prestige Capital Corporation led to significant NII generation in our first full quarter of ownership

 

We issued $45 million of 6.50% senior unsecured bonds due June 2024 during the second and third quarter (NASDAQ: GECCN).

 

We repurchased 397,719 GECC shares in the open market during the quarter ended June 30, 2019

 

“I’m pleased to report that NII covered our base distribution by such a wide margin this quarter,” remarked Peter A. Reed, GECC’s Chief Executive Officer. “Our team continues to be encouraged by the portfolio’s performance, outlook and increasing diversity.”

1

 


 

PORTFOLIO AND INVESTMENT ACTIVITY

 

As of June 30, 2019, we held 27 debt investments, totaling approximately $173.2 million and representing 84.8% of the fair market value of our total investments. First lien and/or secured debt investments comprised 100.0% of the fair market value of our debt investments. As of the same date, we held seven equity investments, totaling approximately $31.0 million and representing 15.2% of the fair market value of our total investments.

 

As of June 30, 2019, the weighted average current yield on our debt portfolio was 11.4%. Floating rate instruments comprised approximately 74.4% of the fair market value of debt investments.

 

During the quarter ended June 30, 2019, we deployed approximately $61.7 million into 15 investments (which included investments in three new companies and 10 existing portfolio companies)(2). The weighted average price of the debt deployment activity was 98% of par, carrying a weighted average current yield of 10.9%.

 

During the quarter ended June 30, 2019, we monetized, in part or in full, 16 investments for approximately $36.6 million(3), at a weighted average current yield of 10.8%. Our weighted average realized price was par.

 

LEGACY FULL CIRCLE PORTFOLIO

 

Since the Full Circle Capital Corporation (“Full Circle”) merger closed in November 2016, we have been diligently focused on monetizing the legacy portfolio. To date, we have exited 24 positions across 16 portfolio companies, realizing an aggregate total return of $5.1 million. These realized gains represents 109% of NAV, a significant achievement given the market’s previous assessment of this portfolio.

 

CONSOLIDATED RESULTS OF OPERATIONS

 

Total investment income for the quarter ended June 30, 2019 was approximately $6.7 million, or $0.66 per share. Total expenses for the quarter ended June 30, 2019 were approximately $3.7 million, or $0.36 per share.  

 

Net realized gains for the quarter ended June 30, 2019 were approximately $0.4 million, or $0.04 per share. Net unrealized depreciation from investments for the quarter ended June 30, 2019 was approximately $7.8 million, or $0.76 per share.

 

LIQUIDITY AND CAPITAL RESOURCES

 

As of June 30, 2019, available liquidity from cash and money market investments was approximately $52.8 million, exclusive of our holdings of United States Treasury Bills. Total debt outstanding as of June 30, 2019 was $121.5 million, comprised of our 6.50% senior notes due September 2022 (NASDAQ: GECCL), our 6.75% senior notes due January 2025 (NASDAQ: GECCM) and our newly issued 6.50%


senior notes due June 2024 (NASDAQ: GECCN). Our asset coverage ratio was approximately 185.6% and our debt-to-equity ratio was 1.17x.

 

SELECT SUBSEQUENT ACTIVITY

 

PE Facility Solutions, LLC

 

On May 10, 2019, PE Facility Solutions, LLC (“PEFS”), a majority-owned subsidiary of GECC, entered into an asset purchase agreement to sell substantially all of its assets to Kellermeyer Bergensons Services, LLC for $23.75 million. The sale was completed on July 31, 2019. In connection with this sale, GECC’s Revolving Loan and Term Loan A to PEFS were repaid at par plus accrued interest and GECC received a partial repayment of its Term Loan B.  We anticipate that the remaining balance of the Term Loan B will be repaid over time from collections of account receivables and the release of escrowed purchase price.

Distributions

In August 2019, our Board set the monthly distributions for the fourth quarter of 2019 at a rate of $0.083 per share, representing an annualized base distribution yield of 9.7% on June 30, 2019 NAV.

Our distribution policy has been designed to set an annual base distribution rate that is covered by NII. From time to time, as catalyst-driven investments are realized or when we out-earn our declared distributions, we may supplement monthly distributions with special distributions from NII generated in excess of the declared distributions(4).

 

CONFERENCE CALL AND WEBCAST

 

Great Elm Capital Corp. will host a conference call and webcast on Tuesday, August 13, 2019 at 10:00 a.m. Eastern Time to discuss its first quarter financial results. All interested parties are invited to participate in the conference call by dialing +1 (844) 820-8297; international callers should dial +1 (661) 378-9758. Participants should enter the Conference ID 5665734 when asked. For a copy of the slide presentation that will be referenced during the course of our conference call, please visit: http://www.investor.greatelmcc.com/events-and-presentations/presentations.

 

The conference call will be webcast simultaneously at:

https://edge.media-server.com/m6/p/oqxawux9.

 

About Great Elm Capital Corp.

 

Great Elm Capital Corp. is an externally managed, specialty finance company focused on investing in debt instruments of middle market companies. GECC elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. GECC targets special situations and catalyst-driven investments as it seeks to generate attractive, risk-adjusted returns through both current income and capital appreciation.


 

Cautionary Statement Regarding Forward-Looking Statements

 

Statements in this communication that are not historical facts are “forward-looking” statements within the meaning of the federal securities laws. These statements are often, but not always, made through the use of words or phrases such as “expect,” “anticipate,” “should,” “will,” “estimate,” “designed,” “seek,” “continue,” “upside,” “potential” and similar expressions. All such forward-looking statements involve estimates and assumptions that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the results expressed in the statements. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking statements are: conditions in the credit markets, the price of GECC common stock and the performance of GECC’s portfolio and investment manager. Information concerning these and other factors can be found in GECC’s Annual Report on Form 10-K and other reports filed with the SEC. GECC assumes no obligation to, and expressly disclaims any duty to, update any forward-looking statements contained in this communication or to conform prior statements to actual results or revised expectations except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.

 

This press release does not constitute an offer of any securities for sale.

 

 

Endnotes:

 

(1) The per share figures are based on a weighted average of shares outstanding for the three months ended June 30, 2019, except where such amounts need to be adjusted to be consistent with the financial highlights of our consolidated financial statements.

(2) This includes new deals, additional fundings (inclusive of those on revolving credit facilities), refinancings and capitalized PIK income. Amounts included herein do not include investments in short-term securities, including United States Treasury Bills and money market mutual funds.

(3) This includes scheduled principal payments, prepayments, sales and repayments (inclusive of those on revolving credit facilities). Amounts included herein do not include investments in short-term securities, including United States Treasury Bills and money market mutual funds.

(4) There can be no assurance that any such supplemental amounts will be received or realized, or even if received and realized, distributed or available for distribution. Past distributions are not indicative of future distributions. Distributions are declared by the Board out of the funds legally available therefor.

 


Great Elm Capital Corp.

Consolidated Statements of Assets and Liabilities

Dollar amounts in thousands (except per share amounts)

 

 

June 30, 2019

 

 

December 31, 2018

 

Assets

 

 

 

 

 

 

 

 

Investments

 

 

 

 

 

 

 

 

Non-affiliated, non-controlled investments, at fair value

   (amortized cost of $144,040 and $137,852, respectively)

 

$

135,222

 

 

$

128,318

 

Non-affiliated, non-controlled short-term investments, at fair value

   (amortized cost of $124,914 and $78,093, respectively)

 

 

124,908

 

 

 

78,085

 

Affiliated investments, at fair value

   (amortized cost of $97,833 and $89,854, respectively)

 

 

40,074

 

 

 

35,665

 

Controlled investments, at fair value

   (amortized cost of $29,622 and $20,648, respectively)

 

 

28,922

 

 

 

20,203

 

Total investments

 

 

329,126

 

 

 

262,271

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

2,543

 

 

 

4,167

 

Receivable for investments sold

 

 

25

 

 

 

10,887

 

Interest receivable

 

 

2,190

 

 

 

3,255

 

Dividends receivable

 

 

57

 

 

 

9

 

Due from portfolio company

 

 

591

 

 

 

555

 

Due from affiliates

 

 

15

 

 

 

5

 

Prepaid expenses and other assets

 

 

10

 

 

 

414

 

Total assets

 

$

334,557

 

 

$

281,563

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Notes payable 6.50% due September 18, 2022 (including unamortized discount

   of $994 and $1,141, respectively)

 

$

31,637

 

 

$

31,490

 

Notes payable 6.75% due January 31, 2025 (including unamortized discount

   of $1,452 and $1,588, respectively)

 

 

44,947

 

 

 

44,811

 

Notes payable 6.50% due June 30, 2024 (including unamortized discount

   of $2,200 and $0, respectively)

 

 

40,300

 

 

 

-

 

Payable for investments purchased

 

 

104,109

 

 

 

84,102

 

Interest payable

 

 

453

 

 

 

354

 

Distributions payable

 

 

835

 

 

 

3,441

 

Accrued incentive fees payable

 

 

6,867

 

 

 

5,422

 

Due to affiliates

 

 

957

 

 

 

1,069

 

Accrued expenses and other liabilities

 

 

812

 

 

 

758

 

Total liabilities

 

$

230,917

 

 

$

171,447

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies (Note 6)

 

$

-

 

 

$

-

 

 

 

 

 

 

 

 

 

 

Net Assets

 

 

 

 

 

 

 

 

Common stock, par value $0.01 per share (100,000,000 shares authorized,

   10,062,682 shares issued and outstanding and 10,652,401 shares issued and

   outstanding, respectively)

 

$

101

 

 

$

107

 

Additional paid-in capital

 

 

193,253

 

 

 

198,247

 

Accumulated losses

 

 

(89,714

)

 

 

(88,238

)

Total net assets

 

$

103,640

 

 

$

110,116

 

Total liabilities and net assets

 

$

334,557

 

 

$

281,563

 

Net asset value per share

 

$

10.30

 

 

$

10.34

 


Great Elm Capital Corp.

Consolidated Statements of OPERATIONS

Dollar amounts in thousands (except per share amounts)

 

 

For the Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Investment Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-affiliated, non-controlled investments

 

$

3,673

 

 

$

3,925

 

 

$

7,522

 

 

$

7,037

 

Non-affiliated, non-controlled investments (PIK)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Affiliated investments

 

 

213

 

 

 

777

 

 

 

411

 

 

 

1,198

 

Affiliated investments (PIK)

 

 

940

 

 

 

1,514

 

 

 

1,815

 

 

 

4,567

 

Controlled investments

 

 

539

 

 

 

555

 

 

 

1,053

 

 

 

1,110

 

Controlled investments (PIK)

 

 

299

 

 

 

211

 

 

 

583

 

 

 

435

 

Total interest income

 

 

5,664

 

 

 

6,982

 

 

 

11,384

 

 

 

14,347

 

Dividend income from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-affiliated, non-controlled investments

 

 

138

 

 

 

49

 

 

 

211

 

 

 

155

 

Controlled investments

 

 

400

 

 

 

-

 

 

 

800

 

 

 

-

 

Total dividend income

 

 

538

 

 

 

49

 

 

 

1,011

 

 

 

155

 

Other income from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-affiliated, non-controlled investments

 

 

32

 

 

 

29

 

 

 

132

 

 

 

42

 

Affiliated investments

 

 

2

 

 

 

87

 

 

 

2

 

 

 

90

 

Affiliated investments (PIK)

 

 

456

 

 

 

-

 

 

 

456

 

 

 

-

 

Controlled investments

 

 

19

 

 

 

15

 

 

 

39

 

 

 

26

 

Total other income

 

 

509

 

 

 

131

 

 

 

629

 

 

 

158

 

Total investment income

 

$

6,711

 

 

$

7,162

 

 

$

13,024

 

 

$

14,660

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management fees

 

$

742

 

 

$

754

 

 

$

1,448

 

 

$

1,447

 

Incentive fees

 

 

749

 

 

 

(2,149

)

 

 

1,445

 

 

 

(1,183

)

Administration fees

 

 

241

 

 

 

487

 

 

 

452

 

 

 

797

 

Custody fees

 

 

15

 

 

 

15

 

 

 

30

 

 

 

29

 

Directors’ fees

 

 

49

 

 

 

50

 

 

 

99

 

 

 

99

 

Professional services

 

 

229

 

 

 

294

 

 

 

468

 

 

 

465

 

Interest expense

 

 

1,571

 

 

 

1,456

 

 

 

3,025

 

 

 

2,731

 

Other expenses

 

 

120

 

 

 

177

 

 

 

278

 

 

 

331

 

Total expenses

 

$

3,716

 

 

$

1,084

 

 

$

7,245

 

 

$

4,716

 

Net investment income

 

$

2,995

 

 

$

6,078

 

 

$

5,779

 

 

$

9,944

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net realized and unrealized gains (losses) on investment transactions:

 

 

 

 

 

 

 

 

 

Net realized gain (loss) from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-affiliated, non-controlled investments

 

$

410

 

 

$

810

 

 

$

1,018

 

 

$

917

 

Affiliated investments

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Controlled investments

 

 

-

 

 

 

-

 

 

 

-

 

 

 

210

 

Total net realized gain (loss)

 

 

410

 

 

 

810

 

 

 

1,018

 

 

 

1,127

 

Net change in unrealized appreciation (depreciation) from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-affiliated, non-controlled investments

 

 

(1,425

)

 

 

2,527

 

 

 

718

 

 

 

(1,888

)

Affiliated investments

 

 

(6,693

)

 

 

(6,566

)

 

 

(3,570

)

 

 

(10,062

)

Controlled investments

 

 

335

 

 

 

(201

)

 

 

(255

)

 

 

(512

)

Total net change in unrealized appreciation (depreciation)

 

 

(7,783

)

 

 

(4,240

)

 

 

(3,107

)

 

 

(12,462

)

Net realized and unrealized gains (losses)

 

$

(7,373

)

 

$

(3,430

)

 

$

(2,089

)

 

$

(11,335

)

Net increase (decrease) in net assets resulting from operations

 

$

(4,378

)

 

$

2,648

 

 

$

3,690

 

 

$

(1,391

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income per share (basic and diluted):

 

$

0.29

 

 

$

0.57

 

 

$

0.55

 

 

$

0.93

 

Earnings per share (basic and diluted):

 

$

(0.43

)

 

$

0.25

 

 

$

0.35

 

 

$

(0.13

)

Weighted average shares outstanding (basic and diluted):

 

 

10,239,631

 

 

 

10,652,401

 

 

 

10,439,572

 

 

 

10,652,401

 

 

Media & Investor Contact:

 

Investor Relations

+1 (617) 375-3006

investorrelations@greatelmcap.com

gecc-ex992_118.pptx.htm

Slide 1

Great Elm Capital Corp. (NASDAQ: GECC) Investor Presentation – Quarter Ended June 30, 2019 August 13, 2019 © 2019 Great Elm Capital Corp. Exhibit 99.2

Slide 2

© 2019 Great Elm Capital Corp. Disclaimer Statements in this communication that are not historical facts are “forward-looking” statements within the meaning of the federal securities laws. These statements are often, but not always, made through the use of words or phrases such as “believe,” “expect,” “anticipate,” “should,” “planned,” “will,” “may,” “intend,” “estimated,” “aim,” “target,” “opportunity,” “sustained,” “positioning,” “designed,” “create,” “seek,” “would,” “could”, “continue,” “ongoing,” “upside,” “increases,” and “potential,” and similar expressions. All such forward-looking statements involve estimates and assumptions that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the results expressed in the statements. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking statements are: conditions in the credit markets, the price of Great Elm Capital Corp. (“GECC”) common stock, and performance of GECC’s portfolio and investment manager. Additional information concerning these and other factors can be found in GECC’s Form 10-K and other reports filed with the Securities and Exchange Commission (the “SEC”). GECC assumes no obligation to, and expressly disclaims any duty to, update any forward-looking statements contained in this communication or to conform prior statements to actual results or revised expectations, except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. You should consider the investment objective, risks, charges and expenses of GECC carefully before investing. GECC’s filings with the SEC contain this and other information about GECC and are available by contacting GECC at the phone number and address at the end of this presentation. The SEC also maintains a website that contains the aforementioned documents. The address of the SEC’s website is http://www.sec.gov. These documents should be read and considered carefully before investing.   The performance, distributions and financial data contained herein represent past performance, distributions and results and neither guarantees nor is indicative of future performance, distributions or results. Investment return and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than the original cost. GECC’s market price and net asset value will fluctuate with market conditions. Current performance may be lower or higher than the performance data quoted. All information and data, including portfolio holdings and performance characteristics, is as of June 30, 2019, unless otherwise noted, and is subject to change. This presentation does not constitute an offer of any securities for sale.

Slide 3

GECC Snapshot GECC Investment Objective Investment Strategy Externally managed, special situations-focused BDC Common stock trades as “GECC” on NASDAQ $0.083 per share monthly distribution1 Insiders own greater than 20% of GECC’s outstanding shares To generate both current income and capital appreciation, while seeking to protect against the risk of capital loss To apply the key principles of value investing to the capital structures of predominantly middle-market companies Portfolio (as of 6/30/2019) $334.6 million of total assets; $204.2 million of portfolio fair value; $103.6 million of net asset value Weighted average current yield of 11.4%2 34 investments (27 debt, 7 equity) in 24 companies across 20 industries (1) Based on distributions that have been declared and / or set through December 2019. Past distributions are not indicative of future distributions. Distributions are declared by the Board out of the funds legally available therefor. Though GECC intends to pay distributions monthly, it is not obligated to do so. Please refer to “Capital Activity: Distribution Policy & Declared Distributions” later in this presentation. (2) Weighted average current yield is based upon the stated coupon rate and fair value of outstanding debt securities at the measurement date. © 2019 Great Elm Capital Corp.

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Highlights and Recent Achievements NII in excess of declared distributions every quarter since inception Special distribution of $0.24 per share declared in December 2018 LTM total distribution yield of 12.0% (on 6/30/19 NAV) and 14.2% (on 6/30/19 market value) During Q2 2019, monetized $36.6 million across 16 investments, in whole or in part, at a weighted average current yield of 10.8% and a weighted average price of $1.00 This includes the complete exit of 3 positions with an aggregate positive return During Q2 2019, deployed $61.7 million of capital into 15 investments at a weighted average current yield of 10.9% and a weighted average price of $0.98 100% of capital deployed into secured investments Asset coverage ratio of 185.6% and debt-to-equity ratio of 1.17x GECCL 6.50% Notes due September 2022 GECCN 6.50% Notes due June 2024 GECCM 6.75% Notes due January 2025 Attractive Fixed Rate Debt Deployment of Capital Monetization of Investments Distributions & Coverage © 2019 Great Elm Capital Corp.

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Portfolio Review (Quarter Ended 6/30/2019) © 2019 Great Elm Capital Corp.

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Portfolio Review 11.4% Weighted average current yield on debt portfolio1 84.8% Percentage of the total portfolio (based on fair value of investments) invested in 1st lien and/or secured debt instruments $0.90 Weighted average dollar price of debt investments in the portfolio, representative of our special situations investment approach2 As of June 30, 2019, approximately 84% of the portfolio was comprised of ideas that are representative of the manner in which we intend to invest3 (1) Weighted average current yield is based upon the stated coupon rate and fair value of outstanding debt securities at the measurement date. (2) Weighted average dollar price is based on the stated par value and fair value of outstanding debt securities at the measurement date. (3) As measured by the fair value of investments. The balance of the portfolio remains in legacy Full Circle positions that were acquired in the merger with Full Circle. © 2019 Great Elm Capital Corp.

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Portfolio Review (Continued) 27 Debt Investments $173.2 million Fair Value Invested in Debt Instruments 74.4% in Floating Rate Instruments (Based on % of Fair Value) 11.4%1 Weighted Average Current Yield 84.8% Of Invested Capital in Debt Instruments (100% of fair value in first lien / secured) 7 Equity Investments $31.0 million Fair Value Invested in Equity Instruments Debt Investments: Equity Investments: 15.2% Of Invested Capital in Equity Investments (1) Weighted average current yield is based upon the stated coupon rate and fair value of outstanding debt securities at the measurement date. Amounts in the above tables do not include investments in short-term securities, including United States Treasury Bills and money market mutual funds. © 2019 Great Elm Capital Corp.

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Portfolio Review (Continued) $61.7 million Capital deployed into 15 investments, including 3 new issuers, with a weighted average dollar price of $0.98 and a weighted average current yield of 10.9%1 $36.6 million Monetized (in part or in full) 16 investments at a weighted average dollar price of $1.00 and a weighted average current yield of 10.8%2 (1) This includes new deals, additional fundings (inclusive of those on revolving credit facilities), refinancings and PIK interest. Amounts included herein are exclusive of investments in short-term securities, including United States Treasury Bills and money market mutual funds. Weighted average dollar price is based upon the stated par value and fair value of outstanding debt securities at the measurement date. Weighted average current yield is based upon the stated coupon rate and fair value of outstanding debt securities at the measurement date. (2) This includes scheduled principal payments, prepayments, sales and repayments (inclusive of those on revolving credit facilities). Amounts included herein are exclusive of investments in short-term securities, including United States Treasury Bills and money market mutual funds. Weighted average dollar price is based upon the stated par value and fair value of outstanding debt securities at the measurement date. Weighted average current yield is based upon the stated coupon rate and fair value of outstanding debt securities at the measurement date. © 2019 Great Elm Capital Corp.

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Portfolio Review: New & Additional Investments During Q2 / 2019, we purchased nine investments (five new, four existing), deploying approximately $40.4 million This deployment activity does not include revolver draws or PIK interest. Research Now Group, Inc. – Purchased approximately $12.0 million face value of secured loans in the secondary market at a price of approximately $0.99 Interest rate: LIBOR + 9.50% New Investment © 2019 Great Elm Capital Corp. New Investment New Investment New Investment Avanti Communications Group plc – Funded $5.4 million face value of new 1.5 lien secured loans at a price of par Interest rate: 12.50% PIK Fees: 2.50% PIK commitment fee, 5.00% PIK funding fee Shearer’s Foods, LLC – Purchased approximately $5.0 million face value of secured loans in the secondary market at a price of approximately $1.00 Interest rate: LIBOR + 6.75% Peninsula Pacific Entertainment, LLC– Purchased approximately $2.3 million face value of secured loans in the secondary market at a price of approximately $1.00 Interest rate: LIBOR + 7.25%

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Portfolio Review: New & Additional Investments (Continued) This deployment activity does not include revolver draws or PIK interest. Tensar Corp. – Purchased approximately $0.5 million face value of secured loans in the secondary market at a price of approximately $0.95 Interest rate: LIBOR + 4.75% New Investment © 2019 Great Elm Capital Corp. Additional Investment Additional Investment Additional Investment Boardriders, Inc. – Purchased $6.0 million face value of secured loans in the secondary market at a price of approximately $0.99 Interest rate: LIBOR + 6.50% APTIM Corp. – Purchased $4.5 million face value of secured loans in the secondary market at a price of approximately $1.00 Interest rate: 7.75% California Pizza Kitchen, Inc. – Purchased $4.0 million face value of secured loans in the secondary market at a price of approximately $0.98 Interest rate: LIBOR + 6.00% Additional Investment SESAC Holdco II, LLC – Purchased $2.0 million face value of secured loans in the secondary market at a price of approximately $1.00 Interest rate: LIBOR + 7.25%

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Portfolio Review: Asset Type and Interest Rate Type ($ in Thousands) Portfolio by Asset Type Portfolio by Interest Rate Type Weighted average fixed rate yield of 11.9%1 Weighted average floating rate yield of 11.2%1 (1) Weighted average fixed and floating rate current yield is based upon the stated coupon rate and fair value of outstanding debt instruments at the measurement date. Amounts in the above tables do not include investments in short-term securities, including United States Treasury Bills and money market mutual funds. © 2019 Great Elm Capital Corp. Investments   Fair Value of Investments   Percentage of Total Portfolio 1st Lien / Secured Debt   $ 173,211   84.8% Equity / Other   $ 31,007   15.2% Total   $ 204,218   100% Investments   Count   Fair Value of Debt   Percentage of Debt Holdings Fixed Rate   4   $ 44,365   25.6% Floating Rate   23   $ 128,846   74.4% Total   27   $ 173,211   100%

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Portfolio Review: Asset Type (End of Period Investments - % of FMV) © 2019 Great Elm Capital Corp.

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Portfolio Review: Interest Rate (End of Period Investments - % of FMV) © 2019 Great Elm Capital Corp.

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Portfolio Review: Industry Breakdown Amounts in the above table do not include investments in short-term securities, including United States Treasury Bills and money market mutual funds. © 2019 Great Elm Capital Corp. September 30, 2018 Investments at Fair Value Percentage of Fair Value Wireless Telecommunications Services $42,760 0.2103740584580113 Building Cleaning and Maintenance Services 19,934 9.8% Manufacturing 17,281 8.5% Technology Services 15,738 7.7% Retail 15,612 7.7% Industrial Conglomerates 14,536 7.2% Water Transport 10,618 5.2% Business Services 9,918 4.9% Gaming, Lodging & Restaurants 9,841 4.8% Chemicals 9,431 4.6% Software Services 8,957 4.4% Radio Broadcasting 8,847 4.4% Real Estate Services 5,583 2.7% Food & Staples Retailing 5,569 2.7% Hotel Operator 2,751 1.4% Consumer Finance 2,346 1.2% Food Products 1,979 .97364420413565099 Information and Data Services 1,250 .6% Wireless Communications 272 .1% Maritime Security Services 34 16727591177671618.2% Total $,203,257 100.0% December 31, 2018 Industry Investments at Fair Value Percentage of Fair Value Wireless Telecommunications Services $35,631 0.19345118521494575 Building Cleaning and Maintenance Services 18,443 0.10013247478092797 Software Services 15,942 8.6553809735810533E-2 Manufacturing 15,575 8.4561258727590585E-2 Retail 14,227 7.7242570010750009E-2 Industrial Conglomerates 13,365 7.2562518323868258E-2 Water Transport 11,889 6.454887993658584E-2 Gaming, Lodging & Restaurants 9,687 5.2593573887266133E-2 Business Services 9,505 5.1605442324606648E-2 Food & Staples Retailing 8,935 4.8510744573420347E-2 Radio Broadcasting 8,807 4.7815794902978513E-2 Chemicals 7,601 4.1268065976784341E-2 Real Estate Services 4,479 2.4317809171163933E-2 Technology Services 4,428 2.4040915161847264E-2 Hotel Operator 3,212 1.7438893292649821E-2 Consumer Finance 1,830 9.9356085695981242E-3 Wireless Communications 596 3.2358594029947988E-3 Maritime Security Services 34 1.8459600621111268E-4 Total $,184,186 0.99999999999999978 March 31, 2019 Industry Investments at Fair Value Percentage of Fair Value Wireless Telecommunications … $38,956 0.20977017683675447 Building Cleaning ... 20,683 0.11137376957373941 Retail 20,292 0.10926831369677127 Software Services 19,393 0.10442738061903634 Business Services 12,742 6.861309152002068E-2 Water Transport 11,389 6.1327460314041397E-2 Gaming, Lodging & Restaurants 9,766 5.2587933745449844E-2 Food & Staples Retailing 8,904 4.794623818036918E-2 Radio Broadcasting 8,536 4.5964632649105046E-2 Industrial Conglomerates 7,538 4.0590604605078941E-2 Specialty Finance 7,367 3.9669804208757833E-2 Internet Media 3,486 1.8771404570616237E-2 Real Estate Services 3,238 1.7435974756068666E-2 Hotel Operator 3,087 1.6622870312533657E-2 Restaurants 2,903 1.5632067546901586E-2 Apparel & Textile Products 1,983 1.067805371874125E-2 Communications Equipment 1,972 1.0618820944708897E-2 Industrial 1,931 1.0398044241497404E-2 Consumer Finance 1,409 7.5871798737803435E-3 Wireless Communications 103 5.5463415684838565E-4 Maritime Security Services 30 1.6154392917914145E-4 Total $,185,708 0.99999999999999967 June 30, 2019 Industry Investments at Fair Value Percentage of Fair Value Wireless Telecommunications Services $40,044 0.19608457628612561 Building Cleaning and Maintenance Services 19,798 9.6945421069641269E-2 Retail 19,027 9.3170043776748382E-2 Internet Media 16,112 7.8896081638249321E-2 Business Services 14,726 7.2109216621453545E-2 Food & Staples 13,902 6.8074312744224305E-2 Software Services 13,863 6.7883340351976809E-2 Gaming, Lodging & Restaurants 12,023 5.8873360820299876E-2 Water Transport 10,768 5.2727967172335445E-2 Radio Broadcasting 8,299 4.063794572466678E-2 Specialty Finance 7,732 3.7861500945068502E-2 Restaurants 6,809 3.3341820995210998E-2 Apparel & Textile Products 5,810 2.8449989716871186E-2 Industrial 5,355 2.6221978473983686E-2 Real Estate Services 4,663 2.2833442693592141E-2 Hotel Operator 3,177 1.5556904876161749E-2 Consumer Finance 1,392 6.8162453848338543E-3 Construction Materials Manufacturing 474 2.3210490750080796E-3 Wireless Communications 214 1.0478997933580782E-3 Maritime Security Services 30 1.4690184019038478E-4 Total $,204,218 0.99999999999999978

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Portfolio Review: Portfolio Rotation © 2019 Great Elm Capital Corp. Since inception, we have consistently monetized higher dollar priced investments and deployed capital into lower dollar priced investments, building total return In addition, substantially all new debt investments since inception have been 1st lien and / or secured *Partial period

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Portfolio Review: Portfolio Rotation (Continued) Q2/2018 Q3/2018 Q4/2018 Q1/2019 Q2/2019 Dollar Value of New Investments1 $37.9 million $39.0 million $34.8 million $54.5 million $61.7 million Weighted Average Price of New Debt Investments $0.99 $0.89 $0.92 $0.97 $0.98 Weighted Average Current Yield of New Debt Investments 10.9% 11.0% 11.2% 10.5% 10.9% % of New Debt Investments - 1st Lien / Secured Instruments 100% 100% 100% 100% 100% Dollar Value of Monetized Investments2 $27.7 million $38.0 million $40.0 million $59.9 million $36.6 million Weighted Average Price of Monetized Debt Investments $1.00 $1.00 $0.99 $0.99 $1.00 Weighted Average Current Yield of Monetized Debt Investments 10.4% 9.0% 11.3% 10.4% 10.8% % of Monetized Debt Investments - 1st Lien / Secured Instruments 100% 100% 100% 100% 100% (1) This includes new deals, additional fundings (inclusive of those on revolving credit facilities), refinancings and PIK interest. Amounts included herein are exclusive of investments in short-term securities, including United States Treasury Bills and money market mutual funds. Weighted average dollar price is based upon the stated par value and fair value of outstanding debt securities at the measurement date. Weighted average current yield is based upon the stated coupon rate and fair value of outstanding debt securities at the measurement date. (2) This includes scheduled principal payments, prepayments, sales and repayments (inclusive of those on revolving credit facilities). Amounts included herein are exclusive of investments in short-term securities, including United States Treasury Bills and money market mutual funds. Weighted average dollar price is based upon the stated par value and fair value of outstanding debt securities at the measurement date. Weighted average current yield is based upon the stated coupon rate and fair value of outstanding debt securities at the measurement date. Portfolio Rotation: New Investments vs. Monetized Investments © 2019 Great Elm Capital Corp.

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Portfolio Review: Avanti Update Confidential Avanti continues to exhibit positive momentum following the hiring of Kyle Whitehill as CEO, signing additional contracts for core bandwidth revenue In May, Avanti raised $55 million in the form of a 1.5 lien facility from its largest stakeholders, including Great Elm Capital Corp., to fund the launch of HYLAS-3 and remaining capital expenditures related to HYLAS-4 With minimal maintenance capital expenditures, Avanti has a clear path to meaningful free cash flow generation   Capitalization Table 1.5 Lien Terms $ in 000s $ in 000s EBITDA Metrics Tranche $ Out. 2019B 2020F 2021F 9.5% 1st Lien TL $,153,000 19.976498237367803 4.5267611467794904 2.5157025880495905 Maturity 44340 12.5% 1.5 Lien TL $39,855 5.2036819428123779 1.1791768987248143 0.65531586043605516 Global Commitment $55,000 9.0% 2nd Lien Notes ,375,409 GECC Commitment $7,527.8829999999998 Total Debt $,568,264 74.19558689123906 16.813041805970592 9.3436811470288408 GECC % 0.13687060000000001 (Less: Cash) ,-15,000 Interest Rate 12.5% PIK Net Debt $,553,264 72.237106671889279 16.36924169354123 9.0970436383965279 Commitment Fee 2.5% PIK Mkt. Capitalization 45,000 Funding Fee 5.0% PIK Enterprise Value $,598,264 78.112547329938636 17.700642030829314 9.8369561642934649 Exit Fee 2.5% Avanti Communications Group plc Capitalization Table 2nd Lien Notes - "Attachment Point" Amt. Outstanding * Current Valuation $ in 000s EBITDA Metrics Tranche $ Out. 2019B 2020F 2021F 8.x% 1st Lien TL $,153,000 19.976498237367803 4.5267611467794904 2.5157025880495905 9.0% 2nd Lien Notes ,281,556.75 Total Debt $,434,556.75 56.738053270661965 12.857088967129204 7.1451996119569863 (Less: Cash) ,-15,000 Net Debt $,419,556.75 54.779573051312184 12.413288854699843 6.8985621033246733 Capitalization Table 1.5 Lien Terms $ in 000s $ in 000s EBITDA Metrics Tranche $ Out. 2019B 2020F 2021F 60% Full 9.5% 1st Lien TL $,153,000 19.976498237367803 4.5267611467794904 2.5157025880495905 1.02 12.5% 1.5 Lien TL $39,855 5.2036819428123779 1.1791768987248143 0.65531586043605516 0.26569999999999999 Maturity 44340 9.0% 2nd Lien Notes ,375,409 Global Commitment $55,000 Total Debt $,568,264 74.19558689123906 16.813041805970592 9.3436811470288408 3.7884266666666666 GECC Commitment $7,527.8829999999998 (Less: Cash) ,-24,000 GECC % 0.13687060000000001 Net Debt $,544,264 71.062018540279411 16.102961626083612 8.949061133217139 3.6284266666666665 Interest Rate 12.5% PIK Mkt. Capitalization 30,000 Commitment Fee 2.5% PIK Enterprise Value $,574,264 74.978978978978972 16.990561850942335 9.4423361504817649 3.8284266666666666 Funding Fee 5.0% PIK Exit Fee 2.5% Avanti Communications Group plc Capitalization Table 2nd Lien Notes - "Attachment Point" Amt. Outstanding * Current Valuation $ in 000s EBITDA Metrics Tranche $ Out. 2019B 2020F 2021F 60% Full 8.x% 1st Lien TL $,153,000 19.976498237367803 4.5267611467794904 2.5157025880495905 1.02 9.0% 2nd Lien Notes ,281,556.75 Total Debt $,434,556.75 56.738053270661965 12.857088967129204 7.1451996119569863 2.8970449999999999 (Less: Cash) ,-24,000 Net Debt $,410,556.75 53.604484919702308 12.147008787242227 6.7505795981452863 2.7370450000000002

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Portfolio Review: Prestige Capital Corporation Update Confidential It has been six months since our acquisition of Prestige Capital Corporation (“PCC”) and the company’s performance has continued to exceed our expectations PCC is well ahead of plan, with annualized FY 2019 pretax income of approximately $3.8 million vs. our expectation at acquisition of approximately $2.4 million Through July, total invoices factored YTD was approximately $160.6 million, roughly in line with July 2018’s YTD figure Under experienced management, PCC continues to experience extremely few credit losses, historically amounting to less than .40% of all invoices factored In June, GECC received its second quarterly dividend from PCC of $400 thousand PCC’s first two distributions equate to an annualized yield of greater than 20% on GECC’s investment Despite not being one of our 10 largest investments, as measured by market value, Prestige is one of our five largest income generators Representing GECC’s first investment in the specialty finance channel, PCC has the ability to generate meaningful earnings with little correlation to GECC’s corporate credit portfolio

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Subsequent Events © 2019 Great Elm Capital Corp.

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Subsequent Events (through August 12, 2019) In July: We bought $4.3 million of par value of California Pizza Kitchen, Inc. (“California Pizza Kitchen”) second lien secured loan at approximately 95% of par value. We bought $3.0 million of par value of California Pizza Kitchen first lien secured loan at approximately 96% of par value. We bought $250 thousand of par value of Peninsula Pacific Entertainment, LLC first lien secured loan at approximately 100% of par value. We bought $4.0 million of par value of Shearer’s Foods, LLC second lien secured loan at approximately 99% of par value. We bought $3.0 million of par value of Tensar Corp. first lien secured loan at approximately 95% of par value. On July 31, 2019, PE Facility Solutions, LLC (“PEFS”), a majority-owned subsidiary of GECC, completed the sale of substantially all of its assets to Kellermeyer Bergensons Services for $23.75 million. Proceeds from the sale were used to repay GECC’s Revolving Loan and Term Loan A to PEFS at par plus accrued interest and to repay GECC’s Term Loan B in part. We anticipate that the remaining balance of the Term Loan B will be repaid over time from collections of account receivables and the release of escrowed purchase price. This deployment and monetization activity does not include revolver draws, ordinary course amortization payments, and government bond trading activity. © 2019 Great Elm Capital Corp.

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Subsequent Events (through August 12, 2019) In August: We bought $10.0 million of par value of Mitchell International, second lien secured loan at approximately 94% of par value. We bought $3.0 million of par value of Boardriders, Inc. first lien secured loan at approximately 98% of par value. SESAC Holdco II, LLC repaid all of GECC’s approximately $14.9 million of second lien loan holdings at 100% of par value. We bought approximately $1.5 million of par value of ASP Chromaflo Intermediate Holdings, Inc. second lien secured loan at approximately 99% of par value. This deployment and monetization activity does not include revolver draws, ordinary course amortization payments, and government bond trading activity. © 2019 Great Elm Capital Corp.

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Financial Review (Quarter Ended 6/30/2019) © 2019 Great Elm Capital Corp.

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Financial Review: Per Share Data Q2/20181 Q3/20181 Q4/20181 Q1/20191 Q2/20191 Earnings Per Share (“EPS”) $0.25 $0.46 ($1.18) $0.76 ($0.43) Net Investment Income (“NII”) Per Share $0.57 $0.25 $0.25 $0.26 $0.29 Net Realized Gains / (Losses) Per Share $0.08 $0.08 $0.04 $0.06 $0.04 Net Unrealized Gains / (Losses) Per Share ($0.40) $0.12 ($1.46) $0.44 ($0.76) Net Asset Value Per Share at Period End $11.79 $12.00 $10.34 $10.89 $10.30 Distributions Paid / Declared Per Share $0.249 $0.249 $0.489 $0.249 $0.249 (1) The per share figures are based on a weighted average of outstanding shares for the preceding quarter, except where such amounts need to be adjusted to be consistent with the financial highlights of our consolidated financial statements. Financial Highlights – Per Share Data © 2019 Great Elm Capital Corp.

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Financial Review: Portfolio Q2/2018 Q3/2018 Q4/2018 Q1/2019 Q2/2019 Capital Deployed $37.9 million $39.0 million $34.8 million $54.5 million $61.7 million Investments Monetized $27.7 million $38.0 million $40.0 million $59.9 million $36.6 million Total Fair Value of Investments at Period End1 $199.3 million $203.3 million $184.2 million $185.7 million $204.2 million Net Asset Value at Period End $125.6 million $127.8 million $110.1 million $114.0 million $103.6 million Total Assets at Period End $286.6 million $288.5 million $281.6 million $290.2 million $334.6 million Total Debt Outstanding at Period End (Par Value) $79.0 million $79.0 million $79.0 million $79.0 million $121.5 million Debt to Equity Ratio at Period End 0.63x 0.62x 0.72x 0.69x 1.17x Cash and Money Market Investments at Period End2 $8.5 million $5.3 million $7.7 million $24.0 million $52.8 million Total Fair Value of Investments does not include investments in short-term securities, including United States Treasury Bills and money market mutual funds. Cash and Money Market Investments does not include our holdings in United States Treasury Bills. Financial Highlights - Portfolio © 2019 Great Elm Capital Corp.

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Financial Review: Quarter Ended 6/30/2019 Total investment income for the quarter ended June 30, 2019 was approximately $6.7 million, or $0.66 per share Net expenses for the quarter ended June 30, 2019 were approximately $3.7 million, or $0.36 per share Net investment income for the quarter ended June 30, 2019 was approximately $3.0 million, or $0.29 per share Net realized gains for the quarter ended June 30, 2019 were approximately $0.4 million, or $0.04 per share Net unrealized depreciation from investments for the quarter ended June 30, 2019 was approximately $7.8 million, or $0.76 per share The per share figures are based on a weighted average of shares outstanding for the preceding quarter, except where such amounts need to be adjusted to be consistent with the financial highlights of our consolidated financial statements. © 2019 Great Elm Capital Corp.

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Financial Review: Quarterly Operating Results (1) The per share figures are based on a weighted average of the shares outstanding for the preceding quarter, except where such amounts need to be adjusted to be consistent with the financial highlights of our consolidated financial statements. (2) Total investment income includes PIK income and net accretion of OID and market discount. Q2/2018 Q3/2018 Q4/2018 Q1/2019 Q2/2019 ($ in Thousands) Per Share1 Per Share1 Per Share1 Per Share1 Per Share1 Total Investment Income2 $7,162 $0.67 $6,180 $0.58 $6,913 $0.65 $6,313 $0.59 $6,711 $0.66 Interest Income 6,982 0.66 6,149 0.58 6,860 0.64 5,720 0.54 5,664 0.55 Dividend & Other Income 180 0.01 31 0.00 53 0.00 593 0.05 1,047 0.10 Net Operating Expenses 1,084 0.10 3,495 0.33 4,208 0.40 3,529 0.33 3,716 0.36 Management fees 754 0.07 768 0.07 740 0.07 706 0.07 742 0.07 Incentive fees (2,149) (0.20) 576 0.05 772 0.07 696 0.07 749 0.07 Total Investment Management fees (1,395) (0.13) 1,344 0.13 1,512 0.14 1,403 0.14 1,491 0.15 Administration fees 487 0.05 202 0.02 417 0.04 211 0.02 241 0.02 Directors’ fees 50 0.00 51 0.00 45 0.00 50 0.00 49 0.00 Interest expense 1,456 0.14 1,457 0.14 1,457 0.14 1,454 0.14 1,571 0.15 Professional services 294 0.03 325 0.03 414 0.04 239 0.02 229 0.02 Custody fees 15 0.00 15 0.00 14 0.00 15 0.00 15 0.00 Other 177 0.02 101 0.01 169 0.02 158 0.01 120 0.01 Fees Waivers and Expense Reimbursement 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 Income Tax, Including Excise Tax 0 0.00 0 0.00 180 0.02 0 0.00 0 0.00 Net Investment Income $6,078 $0.57 $2,685 $0.25 $2,705 $0.25 $2,784 $0.26 $2,995 $0.29 © 2019 Great Elm Capital Corp.

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Capital Activity © 2019 Great Elm Capital Corp.

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Capital Activity: Distribution Policy & Declared Distributions (1) There can be no assurance that any such supplemental amounts will be received or realized, or even if received and realized, distributed or available for distribution. Past distributions are not indicative of future distributions. Distributions are declared by the Board out of the funds legally available therefor. Though GECC intends to pay distributions monthly, it is not obligated to do so. In December 2018, we announced a special distribution of $0.24 per share. Including the base distributions, our declared distributions to stockholders over the past 12 months totaled $1.24 per share, representing 12.0% on our June 30, 2019 NAV or 14.2% on the June 30, 2019 market value In May 2019, our Board set our monthly Q3/2019 distribution amount. The distribution schedule, including record date and payable date, was established by GECC pursuant to authority granted by the Board and communicated to stockholders on June 5, 2019 In August 2019, our Board set our Q4/2019 distribution amount of $0.083 per share per month. The distribution schedule, including record date and payment date, will be established by GECC pursuant to authority granted by the Board We intend to continue to supplement these base distributions with special distributions from NII in excess of the declared distribution and as catalyst-driven investments are realized1 © 2019 Great Elm Capital Corp. Month Rate Record Date Payable Date July $0.083 July 31, 2019 August 15, 2019 August $0.083 August 30, 2019 September 13, 2019 September $0.083 September 30, 2019 October 15, 2019

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Capital Activity: Distribution Yield as a Percentage of Market Value © 2019 Great Elm Capital Corp. * Partial period ** Annualized distribution yield is calculated by dividing the declared distribution by the closing price at quarter end and annualizing over four periods. The special distribution is added as applicable. (1) Through December 2019. 38 consecutive monthly base distributions of $0.083 per share1 Special distributions of $0.20 per share declared in December 2017 and $0.24 per share in December 2018 Cumulative distributions declared / set to date total approximately $3.59 per share1

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Capital Activity: Historical Distribution Coverage © 2019 Great Elm Capital Corp. * Partial period ended December 31, 2016; Adjusted NII excludes one-time merger / formation costs. NII has covered the base distribution every quarter since inception

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Summary © 2019 Great Elm Capital Corp.

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Summary Earned or out-earned declared distributions every quarter since inception Declared a special distribution of $0.24 per share in December 2018, resulting in a LTM distribution yield of 12.0% (based on 6/30/2019 NAV) and 14.2% (based on 6/30/2019 closing market value) To date, 38 consecutive monthly base distributions of $0.083 per share and two special distributions, totaling $3.59 in total distributions paid, declared or set IRR on all realized investments is approximately 21% Approximately 73% of the legacy Full Circle investments realized at 109% of NAV Monetization of investments consistently at higher prices than capital deployment Insiders own greater than 20% of GECC’s outstanding shares GECC has repurchased greater than 2.8 million shares, representing approx. 22% of its initial share count Alignment of Interest Realized Performance Distributions & Coverage © 2019 Great Elm Capital Corp. The Portfolio A diversified portfolio, primarily comprised of secured loans, secured bonds and investments in specialty finance businesses uncorrelated to the corporate credit portfolio Weighted average current yield of 11.4%1 (1) Weighted average current yield is based upon the stated coupon rate and fair value of outstanding debt securities at the measurement date

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Appendix © 2019 Great Elm Capital Corp.

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Appendix: General Risks Debt instruments are subject to credit and interest rate risks.   Credit risk refers to the likelihood that an obligor will default in the payment of principal or interest on an instrument. Financial strength and solvency of an obligor are the primary factors influencing credit risk. In addition, lack or inadequacy of collateral or credit enhancement for a debt instrument may affect its credit risk. Credit risk may change over the life of an instrument, and debt instruments that are rated by rating agencies are often reviewed and may be subject to downgrade. Our debt investments either are, or if rated would be, rated below investment grade by independent rating agencies. These “junk bonds” and “leveraged loans” are regarded as having predominantly speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal. They may be illiquid and difficult to value and typically do not require repayment of principal before maturity, which potentially heightens the risk that we may lose all or part of our investment.   Interest rate risk refers to the risks associated with market changes in interest rates. Interest rate changes may affect the value of a debt instrument indirectly (especially in the case of fixed rate obligations) or directly (especially in the case of an instrument whose rates are adjustable). In general, rising interest rates will negatively impact the price of a fixed rate debt instrument and falling interest rates will have a positive effect on price. Adjustable rate instruments also react to interest rate changes in a similar manner although generally to a lesser degree (depending, however, on the characteristics of the reset terms, including the index chosen, frequency of reset and reset caps or floors, among other factors).   GECC utilizes leverage to seek to enhance the yield and net asset value of its common stock. These objectives will not necessarily be achieved in all interest rate environments. The use of leverage involves risk, including the potential for higher volatility and greater declines of GECC’s net asset value, fluctuations of dividends and other distributions paid by GECC and the market price of GECC’s common stock, among others. The amount of leverage that GECC may employ at any particular time will depend on, among other things, our Board’s and our adviser’s assessment of market and other factors at the time of any proposed borrowing.   As part of our lending activities, we may purchase notes or make loans to companies that are experiencing significant financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation proceedings. Although the terms of such financings may result in significant financial returns to us, they involve a substantial degree of risk. The level of analytical sophistication, both financial and legal, necessary for successful financing to companies experiencing significant business and financial difficulties is unusually high. We cannot assure you that we will correctly evaluate the value of the assets collateralizing our investments or the prospects for a successful reorganization or similar action. In any reorganization or liquidation proceeding relating to a portfolio company, we may lose all or part of the amounts advanced to the borrower or may be required to accept collateral with a value less than the amount of the investment advanced by us to the borrower. © 2019 Great Elm Capital Corp.

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Appendix: Contact Information Investor Relations 800 South Street, Suite 230 Waltham, MA 02453 Phone: +1 (617) 375-3006 investorrelations@greatelmcap.com © 2019 Great Elm Capital Corp.