Great Elm Group Partners with Kennedy Lewis to Expand Industrial Real Estate Platform

Great Elm Group has formed a strategic partnership with Kennedy Lewis Investment Management, investing $150 million in Monomoy Properties REIT and acquiring 4.9% of GEG's common stock. KLIM will gain board representation at both companies and hold a 15% profits interest in Great Elm Real Estate Ventures. The partnership aims to expand GEG's industrial real estate platform and facilitate growth through strategic oversight and governance.

Great Elm Group, Inc. (NASDAQ: GEG) has formed 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. KLIM will gain board representation at both companies and hold a 15% profits interest in Great Elm Real Estate Ventures. The partnership aims to expand GEG's industrial real estate platform and facilitate growth through strategic oversight and governance.

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 [1].

"This partnership strengthens our position as a full-spectrum real estate enterprise," said Jason Reese, Chief Executive Officer of Great Elm. "KLIM's deep sector expertise and alignment with our long-term vision empower us to deliver superior value to Monomoy's tenants and clients as well as our shareholders" [1].

KLIM is also appointing a board representative at each of Great Elm and Monomoy REIT, underscoring its role as a long-term partner. "We are excited to partner with Great Elm and support the continued expansion of its industrial real estate platform," said David Chene, Co-Founder of KLIM. "The 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" [1].

The capital injection represents a major 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 delivery of real estate solutions from acquisition through development and management.

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 and webcast on Friday, August 1, 2025, at 8:30 a.m. Eastern Time (ET). Interested parties can participate by dialing +1 (877) 407-0752 or +1 (201) 389-0912 and entering the Conference ID 13755229. The webcast will be available simultaneously and can be accessed here [1].

Great Elm Group 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., a publicly-traded business development company, and Monomoy Properties REIT, LLC, an industrial outdoor storage-focused real estate investment trust [2].

Kennedy Lewis Investment Management, LLC, is a credit-focused alternative investment manager founded in 2017 with over $30 billion under management. The firm manages private funds, a publicly traded REIT focused on landbanking, a non-exchange traded business development company, and collateralized loan obligations [2].

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