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PALM BEACH GARDENS, Fla. - Kennedy Lewis Investment Management LLC (KLIM) has purchased 4.9% of Great Elm Group, Inc.’s (NASDAQ:GEG) common stock and provided up to $150 million in strategic financing to Monomoy Properties REIT, according to a press release issued Thursday. The company, currently valued at approximately $127 million, has seen its stock trading near its 52-week high of $11.39, according to InvestingPro data.
The transaction includes an initial $100 million term loan to Monomoy REIT with an option for an additional $50 million in future capital. KLIM purchased Great Elm’s common shares at the market price of approximately $2.11 per share.
As part of the deal, KLIM will hold a 15% profits interest in the newly formed Great Elm Real Estate Ventures, LLC, which consolidates Great Elm’s real estate subsidiaries. This interest may increase to 20% under certain circumstances. KLIM will also appoint board representatives at both Great Elm and Monomoy REIT.
"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," said Jason Reese, Chief Executive Officer of Great Elm.
The financing will allow Monomoy REIT to refinance existing convertible debt, repay credit facilities, and fund new acquisitions. Monomoy REIT currently manages approximately $400 million in diversified net leased industrial outdoor storage assets.
Great Elm Real Estate Ventures operates as a full-service industrial outdoor space enterprise through several subsidiaries: Monomoy CRE, which handles asset management; Monomoy BTS, which focuses on acquiring land and developing custom-built properties; and Monomoy Construction Services, which offers procurement and construction management.
KLIM, founded in 2017, is a credit-focused alternative investment manager with over $30 billion under management. Great Elm Group is an alternative asset manager that builds a portfolio across credit, real estate, specialty finance, and other alternative strategies.
In other recent news, Great Elm Capital Corp reported its Q1 2025 earnings, exceeding analyst expectations with an earnings per share of $0.37, surpassing the forecast of $0.36. The company’s revenue also outperformed projections, reaching $12.5 million compared to the anticipated $10.9 million. These results highlight a strong financial performance for the quarter. Additionally, there were no recent reports of mergers involving Great Elm Capital. Analyst firms have not provided any upgrades or downgrades for the company in the latest updates. The company’s stock showed minor fluctuations, but these did not affect the overall stability in after-hours trading. Investors may find the earnings and revenue figures particularly noteworthy as they assess the company’s financial health.
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