Great Elm Group Partners with KLIM for Expansion and Debt Investment

Great Elm Group has partnered with KLIM to expand its industrial real estate platform. The deal involves the sale of 4.9% of its common stock and a $150 million debt investment. This partnership enhances Great Elm's financial position, allows for refinancing and new acquisitions, and strengthens its market position. Despite financial difficulties and a challenging valuation, Great Elm's stock is rated Neutral by Spark's AI Analyst, with growth in assets under management and revenue offsetting technical analysis indicators.

Great Elm Group, Inc. (NASDAQ: GEG) has announced a strategic partnership with Kennedy Lewis Investment Management (KLIM) to expand its industrial real estate platform. The deal involves the sale of 4.9% of its common stock at $2.11 per share and a $150 million debt investment in Monomoy Properties REIT. This partnership is set to enhance Great Elm's financial position, allow for refinancing and new acquisitions, and strengthen its market position.

Under the terms of the transaction, KLIM is providing an initial $100 million term loan to Monomoy REIT, with an option for an additional $50 million in future capital. Additionally, KLIM is purchasing 4.9% of GEG’s common stock at market price, approximately $2.11 a share, and will hold an initial 15% profits interest (which may be increased to 20% under certain circumstances) in the newly formed Great Elm Real Estate Ventures, LLC, which consolidates GEG’s real estate subsidiaries: Monomoy CRE, Monomoy Construction Services, and Monomoy BTS.

The capital injection represents a significant milestone in the continued growth and ongoing evolution of Great Elm’s real estate business. This structure enables Great Elm Real Estate Ventures to serve its tenants as a comprehensive, value-added real estate partner, enhancing the delivery of real estate solutions from acquisition through development and management.

Strategically, the KLIM financing substantially improves Monomoy REIT’s 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’s operations.

Great Elm Real Estate Ventures will host a conference call on Friday, August 1, 2025, at 8:30 a.m. Eastern Time (ET) to discuss the partnership and its implications. Interested parties can dial +1 (877) 407-0752 or +1 (201) 389-0912 and enter the Conference ID 13755229 if asked. The webcast can be accessed here [1].

Despite financial challenges and a challenging valuation, Great Elm's stock is rated Neutral by Spark's AI Analyst. The growth in assets under management and revenue is offsetting technical analysis indicators, providing a balanced view of the company's performance.

References:
[1] https://www.globenewswire.com/news-release/2025/07/31/3125404/0/en/Great-Elm-Group-Announces-Strategic-Partnership-with-Kennedy-Lewis-Investment-Management.html
[2] https://www.stocktitan.net/news/GEG/great-elm-group-announces-strategic-partnership-with-kennedy-lewis-ydv5dorc7yv6.html