KLIM Invests in Great Elm Group with $100M Loan and Stock Purchase

KLIM has partnered with Great Elm Group, providing a $100M term loan to Monomoy REIT and purchasing 4.9% of GEG's common stock at $2.11 per share. KLIM will also hold a 15% profits interest in Great Elm Real Estate Ventures, which consolidates GEG's real estate subsidiaries. The partnership delivers up to $150M in leverageable capital to support Great Elm's real estate platform.

Great Elm Group, Inc. (NASDAQ: GEG) has announced a significant strategic partnership with Kennedy Lewis Investment Management (KLIM), marking a substantial 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 Real Estate Ventures, which consolidates GEG's real estate subsidiaries.

The partnership delivers up to $150 million in leverageable capital to support Great Elm's real estate platform, including Monomoy REIT, Monomoy CRE, Monomoy Construction Services, and Monomoy BTS. This capital injection represents a major milestone in the continued growth and ongoing evolution of Great Elm's real estate business. The strategic financing will substantially improve Monomoy REIT’s cost of capital and allow 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 Group's Chief Executive Officer, Jason Reese, commented on the partnership, stating, "KLIM’s investment strengthens our position as a full-spectrum real estate enterprise. Their deep sector expertise, alignment with our long-term vision, and capital commitment empower us to deliver superior value to Monomoy’s tenants and clients as well as our shareholders."

Kennedy Lewis Investment Management, LLC, a credit-focused alternative investment manager, was founded in 2017 by David K. Chene and Darren L. Richman with over $30 billion under management. The firm and its affiliates manage private funds, a publicly traded REIT focused on landbanking (Millrose Properties, Inc.), a non-exchange traded business development company (Kennedy Lewis Capital Company), and collateralized loan obligations (Generate Advisors, LLC).

Great Elm Group, Inc. 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.

The partnership will be discussed further during a conference call on August 1, 2025, at 8:30 a.m. ET. Investors and interested parties are invited to participate by dialing +1 (877) 407-0752 or +1 (201) 389-0912 and entering the Conference ID 13755229 if asked. The webcast will be available at the provided link.

References:
[1] https://finance.yahoo.com/news/great-elm-group-announces-strategic-200500692.html
[2] https://www.stocktitan.net/news/GEG/great-elm-group-announces-strategic-partnership-with-kennedy-lewis-ydv5dorc7yv6.html