Great Elm Group Partners with Kennedy Lewis for Strategic Financing and Stock Purchase.

Great Elm Group has formed a strategic partnership with Kennedy Lewis Investment Management, purchasing 4.9% of its common stock at market price. The partnership also includes a $150 million debt investment in Monomoy Properties REIT to accelerate the expansion of its industrial real estate platform. The transaction is expected to catalyze growth across the Monomoy platform recently consolidated under Great Elm Real Estate Ventures.

Great Elm Group, Inc. (NASDAQ: GEG) has entered into 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 a market price of approximately $2.11 per share [1]. Additionally, KLIM is providing a $150 million debt investment in Monomoy Properties REIT to accelerate the growth of the Monomoy platform recently consolidated under Great Elm Real Estate Ventures [1].

The transaction highlights a $100 million initial term loan to Monomoy REIT, with an option for an additional $50 million in future capital. KLIM will also hold an initial 15% profits interest 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].

The partnership underscores KLIM's commitment to a long-term collaboration, as evidenced by the appointment of board representatives at both GEG and Monomoy REIT. This strategic move aims to enhance the Monomoy platform's capabilities, offering tenants and investors comprehensive real estate solutions from acquisition to management [1].

The financial impact of the partnership is substantial. The $150 million debt investment from KLIM significantly improves Monomoy REIT's cost of capital, enabling the refinancing of existing convertible debt and repayment of key credit facilities. The capital will also fund new acquisitions and scale Monomoy's operations, contributing to the overall growth of the Monomoy platform [1].

Great Elm Group's CEO, Jason Reese, commented, "KLIM's investment strengthens our position as a full-spectrum real estate enterprise. Their deep sector expertise and capital commitment empower us to deliver superior value to Monomoy's tenants and clients as well as our shareholders" [1].

Kennedy Lewis Investment Management's Co-Founder, David Chene, expressed excitement about the partnership, stating, "We are excited to partner with Great Elm and support the continued expansion of its industrial real estate platform. The integrated strategy being executed through Monomoy is exactly the kind of scalable, opportunity-rich platform we seek to support" [1].

Great Elm Real Estate Ventures will host a conference call on Friday, August 1, 2025, at 8:30 a.m. ET, to discuss the partnership and its implications for the company's growth. Interested parties can dial +1 (877) 407-0752 or +1 (201) 389-0912 to participate [1].

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