Great Elm Group, Inc. Q2 FY2025 earnings call

• Launched Monomoy Construction Services via the strategic acquisition of Greenfield CRE, a leading construction management company.
• GECC raised an additional $13.2 million of equity at net asset value in December, its third equity capital raise in 2024.
• Fee-paying AUM increased 17% year-over-year to ~$538 million, primarily driven by the BDC.
• GECIF delivered a net return of approximately 13.9% on invested capital since inception in November '23.
• Continued to repurchase shares at a meaningful discount to book value, executing on the $20 million buyback authorization.
• Monomoy completed its second design-build project and has a strong pipeline of build-to-suit opportunities, with plans to sell the second build-to-suit project and develop the third contracted design-build project.

Fee-paying assets under management reached approximately $538 million, a 17% year-over-year increase, primarily driven by the BDC. GECC's base management fee grew 33% year-over-year to $1.2 million, and incentive fees of approximately $0.5 million were earned this quarter. GECIF, the private credit fund, has delivered a strong return on invested capital of approximately 13.9% net of fees since inception in November '23. Monomoy completed its second design-build project, launched Monomoy Construction Services through the acquisition of Greenfield CRE, closed on three property purchases for approximately $3.8 million, and has a strong pipeline of build-to-suit opportunities. Revenue contribution: Total revenue was $3.5 million, growing 24% year-over-year. GECC's base management fee and incentive fees contributed to revenue growth, while GECIF and Monomoy's activities also played roles.

• Continue to evaluate strategic opportunities to expand businesses and accretive differentiated product offerings with attractive risk-adjusted return profiles.
• Remain committed to executing on real estate development projects to drive profitability and deliver value for tenants and shareholders.
• Expect the acquisition of Greenfield CRE to enhance construction management expertise and expand third-party owner-rep consulting services, adding fee revenue opportunities.

Q: There are no questions at this time A: