Great Elm Group Announces Strategic Partnership with Kennedy Lewis Investment Management
Great Elm Group (NASDAQ: GEG) has announced a strategic partnership with Kennedy Lewis Investment Management (KLIM), marking a significant expansion of its industrial real estate platform. The partnership includes KLIM's purchase of 4.9% of GEG's common stock at $2.11 per share and a substantial $150 million debt investment in Monomoy Properties REIT.
The deal structure comprises an initial $100 million term loan to Monomoy REIT, with an option for an additional $50 million in future capital. KLIM will also hold a 15% profits interest (potentially increasing to 20%) in Great Elm AG真人官方 Estate Ventures, which consolidates GEG's real estate subsidiaries. As part of the agreement, KLIM will appoint board representatives at both GEG and Monomoy REIT.
Great Elm Group (NASDAQ: GEG) ha annunciato una partnership strategica con Kennedy Lewis Investment Management (KLIM), segnando una significativa espansione della sua piattaforma immobiliare industriale. La collaborazione prevede l'acquisto da parte di KLIM del 4,9% delle azioni ordinarie di GEG a 2,11 dollari per azione e un importante investimento di debito da 150 milioni di dollari in Monomoy Properties REIT.
La struttura dell'accordo include un prestito a termine iniziale di 100 milioni di dollari a Monomoy REIT, con l'opzione di un ulteriore capitale futuro di 50 milioni di dollari. KLIM deterr脿 inoltre un interesse sui profitti del 15% (con possibile aumento fino al 20%) in Great Elm AG真人官方 Estate Ventures, che consolida le societ脿 immobiliari di GEG. Nell'ambito dell'accordo, KLIM nominer脿 rappresentanti nel consiglio di amministrazione sia di GEG che di Monomoy REIT.
Great Elm Group (NASDAQ: GEG) ha anunciado una asociaci贸n estrat茅gica con Kennedy Lewis Investment Management (KLIM), marcando una expansi贸n significativa de su plataforma de bienes ra铆ces industriales. La asociaci贸n incluye la compra por parte de KLIM del 4,9% de las acciones ordinarias de GEG a 2,11 d贸lares por acci贸n y una inversi贸n sustancial de deuda de 150 millones de d贸lares en Monomoy Properties REIT.
La estructura del acuerdo contempla un pr茅stamo a plazo inicial de 100 millones de d贸lares a Monomoy REIT, con opci贸n a un capital adicional futuro de 50 millones de d贸lares. KLIM tambi茅n tendr谩 un inter茅s del 15% en las ganancias (con posible aumento al 20%) en Great Elm AG真人官方 Estate Ventures, que consolida las subsidiarias inmobiliarias de GEG. Como parte del acuerdo, KLIM nombrar谩 representantes en los consejos de administraci贸n tanto de GEG como de Monomoy REIT.
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瓯半灅 甑“電� Monomoy REIT鞐� 雽�頃� 齑堦赴 1鞏� 雼煬鞚� 旮瓣皠 雽�於�瓿� 頄ロ泟 5觳滊 雼煬 於旉皜 鞛愲掣 韴瀰 鞓奠厴鞙茧 甑劚霅╇媹雼�. KLIM鞚� 霕愴暅 GEG鞚� 攵�霃欖偘 鞛愴殞靷ゼ 韱淀暕頃橂姅 Great Elm AG真人官方 Estate Ventures鞐愳劀 15%鞚� 鞚挫澋 歆�攵�(斓滊寑 20%旯岇 歃濌皜 臧�電�)鞚� 氤挫湢頃╇媹雼�. 順戩暯鞚� 鞚柬櫂鞙茧 KLIM鞚� GEG鞕� Monomoy REIT 鞏戩浮 鞚挫偓須岇棎 雽�響滊ゼ 鞛勲獏頃� 鞓堨爼鞛呺媹雼�.
Great Elm Group (NASDAQ : GEG) a annonc茅 un partenariat strat茅gique avec Kennedy Lewis Investment Management (KLIM), marquant une expansion significative de sa plateforme immobili猫re industrielle. Ce partenariat inclut l'achat par KLIM de 4,9 % des actions ordinaires de GEG au prix de 2,11 dollars par action ainsi qu'un investissement important en dette de 150 millions de dollars dans Monomoy Properties REIT.
La structure de l'accord comprend un pr锚t 脿 terme initial de 100 millions de dollars 脿 Monomoy REIT, avec une option pour un capital suppl茅mentaire futur de 50 millions de dollars. KLIM d茅tiendra 茅galement un int茅r锚t aux b茅n茅fices de 15 % (pouvant atteindre 20 %) dans Great Elm AG真人官方 Estate Ventures, qui consolide les filiales immobili猫res de GEG. Dans le cadre de cet accord, KLIM nommera des repr茅sentants au conseil d'administration de GEG et de Monomoy REIT.
Great Elm Group (NASDAQ: GEG) hat eine strategische Partnerschaft mit Kennedy Lewis Investment Management (KLIM) bekannt gegeben, die eine bedeutende Erweiterung seiner industriellen Immobilienplattform darstellt. Die Partnerschaft umfasst den Kauf von 4,9 % der Stammaktien von GEG durch KLIM zu einem Preis von 2,11 USD pro Aktie sowie eine erhebliche Fremdkapitalinvestition in H枚he von 150 Millionen USD in Monomoy Properties REIT.
Die Struktur des Deals beinhaltet ein anf盲ngliches 100-Millionen-USD-Terminkredit an Monomoy REIT mit der Option auf weitere 50 Millionen USD zuk眉nftiges Kapital. KLIM wird au脽erdem einen 15%igen Gewinnanteil (mit m枚glicher Steigerung auf 20 %) an Great Elm AG真人官方 Estate Ventures halten, das die Immobilien-Tochtergesellschaften von GEG zusammenfasst. Im Rahmen der Vereinbarung wird KLIM Vertreter in die Vorst盲nde von sowohl GEG als auch Monomoy REIT entsenden.
- Strategic partnership with KLIM, a major institutional investor managing over $30 billion in assets
- Secured up to $150 million in leverageable capital for real estate platform expansion
- KLIM's equity investment at market price demonstrates confidence in GEG's value
- Board representation from KLIM strengthens corporate governance and strategic oversight
- Potential dilution of existing shareholders through 4.9% equity sale
- Increased debt burden with $150 million term loan facility
- Transfer of 15-20% profits interest in AG真人官方 Estate Ventures to KLIM reduces GEG's economic interest
Insights
KLIM's $150M financing and equity stake strengthens GEG's industrial real estate platform, enhancing growth potential and operational capabilities.
Great Elm Group has secured a transformational strategic partnership with Kennedy Lewis Investment Management that significantly bolsters its real estate operations. KLIM is providing
The partnership structure reveals sophisticated alignment of interests across multiple levels. KLIM will hold an initial
This transaction addresses a critical growth constraint for GEG - access to leverageable capital for its industrial real estate platform. With KLIM's
The consolidation of GEG's real estate subsidiaries under Great Elm AG真人官方 Estate Ventures creates operational synergies while the capital infusion enables accelerated platform expansion. For an alternative asset manager like GEG, this partnership substantially enhances its ability to capture opportunities in the industrial real estate sector through its Monomoy platform.
- Purchases
- Company to Host Conference Call at 8:30 a.m. ET on August 1, 2025 -
Transaction Highlights:
- Certain funds affiliated with Kennedy Lewis Investment Management LLC (鈥淜LIM鈥�) purchase
4.9% of Great Elm Group, Inc鈥檚 (鈥淕EG鈥�) outstanding common stock at market price, approximately$2.11 per share. $150 million of term loans in total strategic financing for Monomoy Properties REIT, LLC (鈥淢onomoy REIT鈥�) from KLIM to catalyze growth across the Monomoy industrial real estate platform recently consolidated under Great Elm AG真人官方 Estate Ventures, LLC (鈥淎G真人官方 Estate Ventures鈥�)- KLIM appoints board representatives at both GEG and Monomoy REIT, underscoring its commitment to a long-term partnership
PALM BEACH GARDENS, Fla., July 31, 2025 (GLOBE NEWSWIRE) -- 听Great Elm Group, Inc. (鈥渨e,鈥� 鈥渦s,鈥� 鈥渙ur,鈥� 鈥淕EG鈥� or 鈥淕reat Elm,鈥�) (NASDAQ: GEG), a publicly traded alternative asset manager, today announced a transformational strategic partnership with KLIM, an institutional alternative investment firm focused on opportunistic credit strategies including real estate with over
Under the terms of the transaction, KLIM is providing an initial
鈥淜LIM鈥檚 investment strengthens our position as a full-spectrum real estate enterprise,鈥� said Jason Reese, Chief Executive Officer of Great Elm. 鈥淭heir deep sector expertise, alignment with our long-term vision, and capital commitment empower us to deliver superior value to Monomoy鈥檚 tenants and clients as well as our shareholders.鈥�
KLIM is also appointing a board representative at each of Great Elm and Monomoy REIT, underscoring its role as a long-term partner.
鈥淲e are excited to partner with Great Elm and support the continued expansion of its industrial real estate platform,鈥� said David Chene, Co-Founder of KLIM. 鈥淭he integrated strategy being executed through Monomoy is exactly the kind of scalable, opportunity-rich platform we seek to support. We look forward to working closely with the leadership team to unlock the full potential of this business.鈥�
About the Monomoy Platform
Monomoy Properties REIT, LLC (REIT) is a private real estate investment trust with approximately
Great Elm AG真人官方 Estate Ventures (AG真人官方 Estate Ventures), a newly created entity comprised of wholly owned subsidiaries of GEG, brings together a vertically integrated group of real estate-focused businesses, each playing a strategic role in delivering best-in-class industrial outdoor storage (IOS) properties across the United States. The wholly owned subsidiaries of GEG include the following:
Monomoy CRE, LLC (MCRE) serves as the real estate asset manager at the core of the Monomoy platform. MCRE is responsible for executing Monomoy Properties REIT鈥檚 day-to-day investment strategy while also sourcing and identifying prime IOS real estate opportunities for development by BTS. With deep market expertise and a proactive approach, MCRE ensures seamless coordination across acquisition, development, and asset management functions.
Monomoy BTS Corp. (BTS) focuses on acquiring land and developing custom-built IOS properties tailored to tenant needs. Each project is executed with precision, supporting business growth and operational efficiency for its clients.
Monomoy Construction Services, LLC (MCS) offers full-service procurement and construction management. MCS serves the REIT, BTS, and select third-party clients, ensuring consistent delivery, quality, cost control, and timely execution.
Together, these entities create a powerful, end-to-end real estate platform that combines deep market insight, professional asset management services investment expertise, and turnkey execution capabilities to generate long-term value for tenants and investors alike.
Transforming Into a Full-Service AG真人官方 Estate Platform
This capital injection represents a major milestone in the continued growth and ongoing evolution of Great Elm鈥檚 real estate business. This structure enables Great Elm AG真人官方 Estate Ventures to serve its tenants as a comprehensive, value-added real estate partner, enhancing delivery of real estate solutions from acquisition through development and management.
Strategic and Financial Impact
The KLIM financing substantially improves Monomoy REIT鈥檚 cost of capital and allows for the refinancing of existing convertible debt and repayment of key credit facilities. The capital will also be used to fund new acquisitions and further scale Monomoy鈥檚 operations.
Great Elm AG真人官方 Estate Ventures Conference Call & Webcast Information
When:听Friday, August 1, 2025, 8:30 a.m. Eastern Time (ET)
Call: All interested parties are invited to participate in the conference call by dialing +1 (877) 407-0752; international callers should dial +1 (201) 389-0912. Participants should enter the Conference ID 13755229 if asked.
Webcast: The conference call will be webcast simultaneously and can be accessed听. A copy of the slide presentation accompanying the conference call, can be found听.
About Kennedy Lewis Investment Management, LLC
Kennedy Lewis is a credit focused alternative investment manager founded in 2017 by David K. Chene and Darren L. Richman with over
About Great Elm Group, Inc.
Great Elm Group, Inc. (NASDAQ: GEG) is an alternative asset manager focused on building a scalable and diversified portfolio of long-duration and permanent capital vehicles across credit, real estate, specialty finance, and other alternative strategies. GEG manages Great Elm Capital Corp. (NASDAQ: GECC), a publicly-traded business development company, Monomoy Properties REIT, LLC, an industrial outdoor storage-focused real estate investment trust along with its growing real estate services platform through Monomoy CRE, MBTS, and MCS. Learn more at .
About Great Elm AG真人官方 Estate Ventures
Great Elm AG真人官方 Estate Ventures, a wholly owned subsidiary of GEG, consolidates the Monomoy real estate platform comprised of Monomoy CRE, LLC (MCRE), Monomoy Construction Services, LLC (MCS), and Monomoy BTS Corp (MBTS). Great Elm AG真人官方 Estate Ventures operates as a full-service industrial outdoor space (IOS) enterprise that provides solutions for our tenants through property management, real estate investments, construction and development. Through the Monomoy platform, AG真人官方 Estate Ventures invests in build-to-suit and existing Class A, B, and C single-tenant industrial properties across the US, focusing on equipment rental, building supply, materials, manufacturing, warehousing, distribution, and logistics, while specifically targeting critical markets with economic growth.
Cautionary Statement Regarding Forward-Looking Statements
Statements in this press release that are 鈥渇orward-looking鈥� statements, including statements regarding expected benefits from the transaction, growth, profitability, acquisition opportunities involve risks and uncertainties that may individually or collectively impact the matters described herein. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made and represent GEG鈥檚 assumptions and expectations in light of currently available information. These statements involve risks, variables and uncertainties, and GEG鈥檚 actual performance results may differ from those projected, and any such differences may be material. For information on certain factors that could cause actual events or results to differ materially from GEG鈥檚 expectations, please see GEG鈥檚 filings with the Securities and Exchange Commission (鈥淪EC鈥�), including its most recent annual report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Additional information relating to GEG鈥檚 financial position and results of operations is also contained in GEG鈥檚 annual and quarterly reports filed with the SEC and available for download at its website听听or at the SEC website听.
This press release does not constitute an offer of any securities for sale.
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Investor Relations
FAQ
What is the value of Kennedy Lewis Investment Management's investment in Great Elm Group (GEG)?
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