# Great Elm Capital Posts 6.9% Net Asset Value Decline as Q3 Income Falls

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/47143
Published: 2026-11-03T01:38:53.000Z
Updated: 2026-11-03T01:38:53.000Z
Section: Business

> Net investment income was $2.4 million, down from $4.5 million in Q2, while realized and unrealized losses totaled about $6.6 million.

Great Elm Capital Corp. closed the third quarter with net asset value of $7.40 per share, down 6.9% from June as investment losses and lower income weighed on results.

The company released its results Nov. 2 for the quarter ended Sept. 30. Net assets were $102.7 million at quarter’s end, compared with $110.4 million on June 30. Per-share net asset value moved from $7.95 to $7.40 over the same period.

Great Elm tied the decline mainly to realized and unrealized investment losses. Those losses reached about $6.6 million, or $0.48 per share, including a $3.3 million reduction in the fair value of its CLO Formation JV investment.

Net investment income was $2.4 million, or $0.17 per share, against $4.5 million and $0.32 per share in the second quarter. Total investment income fell to $8.7 million from $10.9 million. The company linked the sequential drop to reduced investment income and incentive-fee accruals restarting after its adviser waived them in Q2. The second-quarter total included a $2 million dividend from insurance-related preference shares.

For Q3 2026, net investment income was $2.374 million, compared with $2.433 million in Q3 2025. Total investment income was $8.694 million, down from $10.642 million. Earnings per share showed a loss of $0.30, versus a $1.79 loss a year earlier. The comparisons differ by baseline: net investment income fell from Q2 but was nearly level with a year earlier, while total investment income was lower in both comparisons.

Chairman and CEO Jason Reese pointed to “continued pressure on certain portfolio investments, particularly our CLO joint venture.” Great Elm, an externally managed business development company, invests in debt and income-producing equity and seeks both income and capital appreciation. Its investments include collateralized loan obligation securities and related warehouse facilities.

The company received $0.8 million in third-quarter distributions from a CoreWeave-related equity investment, bringing cumulative distributions to about $10.3 million on the original $6 million investment.

The board declared a $0.25-per-share distribution for the fourth quarter. It is payable Dec. 31 to stockholders of record Dec. 15.