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Great Elm Group Announces Strategic Partnership with Kennedy Lewis Investment Management

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Great Elm Group (NASDAQ: GEG) has announced 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.

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. As part of the agreement, KLIM will appoint board representatives at both GEG and Monomoy REIT.

Great Elm Group (NASDAQ: GEG) ha annunciato una partnership strategica con Kennedy Lewis Investment Management (KLIM), segnando una significativa espansione della sua piattaforma immobiliare industriale. La collaborazione prevede l'acquisto da parte di KLIM del 4,9% delle azioni ordinarie di GEG a 2,11 dollari per azione e un importante investimento di debito da 150 milioni di dollari in Monomoy Properties REIT.

La struttura dell'accordo include un prestito a termine iniziale di 100 milioni di dollari a Monomoy REIT, con l'opzione di un ulteriore capitale futuro di 50 milioni di dollari. KLIM deterrà inoltre un interesse sui profitti del 15% (con possibile aumento fino al 20%) in Great Elm Real Estate Ventures, che consolida le società immobiliari di GEG. Nell'ambito dell'accordo, KLIM nominerà rappresentanti nel consiglio di amministrazione sia di GEG che di Monomoy REIT.

Great Elm Group (NASDAQ: GEG) ha anunciado una asociación estratégica con Kennedy Lewis Investment Management (KLIM), marcando una expansión significativa de su plataforma de bienes raíces industriales. La asociación incluye la compra por parte de KLIM del 4,9% de las acciones ordinarias de GEG a 2,11 dólares por acción y una inversión sustancial de deuda de 150 millones de dólares en Monomoy Properties REIT.

La estructura del acuerdo contempla un préstamo a plazo inicial de 100 millones de dólares a Monomoy REIT, con opción a un capital adicional futuro de 50 millones de dólares. KLIM también tendrá un interés del 15% en las ganancias (con posible aumento al 20%) en Great Elm Real Estate Ventures, que consolida las subsidiarias inmobiliarias de GEG. Como parte del acuerdo, KLIM nombrará representantes en los consejos de administración tanto de GEG como de Monomoy REIT.

Great Elm Group (NASDAQ: GEG)는 Kennedy Lewis Investment Management(KLIM)와 전략적 파트너십을 발표하며 산업용 부동산 플랫폼을 크게 확장했습니다. 이번 파트너십에는 KLIM이 GEG 보통주 4.9%를 주당 2.11달러에 매입하고, Monomoy Properties REIT에 1억 5천만 달러 상당의 채무 투자가 포함됩니다.

거래 구조는 Monomoy REIT에 대한 초기 1억 달러의 기간 대출과 향후 5천만 달러 추가 자본 투입 옵션으로 구성됩니다. KLIM은 또한 GEG의 부동산 자회사를 통합하는 Great Elm Real Estate Ventures에서 15%의 이익 지분(최대 20%까지 증가 가능)을 보유합니다. 협약의 일환으로 KLIM은 GEG와 Monomoy REIT 양측 이사회에 대표를 임명할 예정입니다.

Great Elm Group (NASDAQ : GEG) a annoncé un partenariat stratégique avec Kennedy Lewis Investment Management (KLIM), marquant une expansion significative de sa plateforme immobilière industrielle. Ce partenariat inclut l'achat par KLIM de 4,9 % des actions ordinaires de GEG au prix de 2,11 dollars par action ainsi qu'un investissement important en dette de 150 millions de dollars dans Monomoy Properties REIT.

La structure de l'accord comprend un prêt à terme initial de 100 millions de dollars à Monomoy REIT, avec une option pour un capital supplémentaire futur de 50 millions de dollars. KLIM détiendra également un intérêt aux bénéfices de 15 % (pouvant atteindre 20 %) dans Great Elm Real Estate Ventures, qui consolide les filiales immobilières de GEG. Dans le cadre de cet accord, KLIM nommera des représentants au conseil d'administration de GEG et de Monomoy REIT.

Great Elm Group (NASDAQ: GEG) hat eine strategische Partnerschaft mit Kennedy Lewis Investment Management (KLIM) bekannt gegeben, die eine bedeutende Erweiterung seiner industriellen Immobilienplattform darstellt. Die Partnerschaft umfasst den Kauf von 4,9 % der Stammaktien von GEG durch KLIM zu einem Preis von 2,11 USD pro Aktie sowie eine erhebliche Fremdkapitalinvestition in Höhe von 150 Millionen USD in Monomoy Properties REIT.

Die Struktur des Deals beinhaltet ein anfängliches 100-Millionen-USD-Terminkredit an Monomoy REIT mit der Option auf weitere 50 Millionen USD zukünftiges Kapital. KLIM wird außerdem einen 15%igen Gewinnanteil (mit möglicher Steigerung auf 20 %) an Great Elm Real Estate Ventures halten, das die Immobilien-Tochtergesellschaften von GEG zusammenfasst. Im Rahmen der Vereinbarung wird KLIM Vertreter in die Vorstände von sowohl GEG als auch Monomoy REIT entsenden.

Positive
  • Strategic partnership with KLIM, a major institutional investor managing over $30 billion in assets
  • Secured up to $150 million in leverageable capital for real estate platform expansion
  • KLIM's equity investment at market price demonstrates confidence in GEG's value
  • Board representation from KLIM strengthens corporate governance and strategic oversight
Negative
  • Potential dilution of existing shareholders through 4.9% equity sale
  • Increased debt burden with $150 million term loan facility
  • Transfer of 15-20% profits interest in Real Estate Ventures to KLIM reduces GEG's economic interest

Insights

KLIM's $150M financing and equity stake strengthens GEG's industrial real estate platform, enhancing growth potential and operational capabilities.

Great Elm Group has secured a transformational strategic partnership with Kennedy Lewis Investment Management that significantly bolsters its real estate operations. KLIM is providing $150 million in term loans to Monomoy Properties REIT while purchasing 4.9% of GEG's common stock at approximately $2.11 per share. This represents a substantial capital infusion structured as $100 million upfront with an option for an additional $50 million.

The partnership structure reveals sophisticated alignment of interests across multiple levels. KLIM will hold an initial 15% profits interest in the newly formed Great Elm Real Estate Ventures, which may increase to 20% under certain conditions. KLIM is also appointing representatives to both GEG and Monomoy REIT boards, demonstrating long-term commitment rather than a passive investment.

This transaction addresses a critical growth constraint for GEG - access to leverageable capital for its industrial real estate platform. With KLIM's $30 billion AUM and specialized focus on opportunistic credit strategies including real estate, GEG gains not just capital but strategic expertise to scale its integrated Monomoy platform, which spans the full spectrum of industrial real estate services.

The consolidation of GEG's real estate subsidiaries under Great Elm Real Estate Ventures creates operational synergies while the capital infusion enables accelerated platform expansion. For an alternative asset manager like GEG, this partnership substantially enhances its ability to capture opportunities in the industrial real estate sector through its Monomoy platform.

- Purchases 4.9% of Great Elm Group’s Common Stock; $150 Million Debt Investment in Monomoy Properties REIT to Accelerate Industrial Real Estate Platform Expansion –

- Company to Host Conference Call at 8:30 a.m. ET on August 1, 2025 -

Transaction Highlights:

  • Certain funds affiliated with Kennedy Lewis Investment Management LLC (“KLIM”) purchase 4.9% of Great Elm Group, Inc’s (“GEG”) outstanding common stock at market price, approximately $2.11 per share.
  • $150 million of term loans in total strategic financing for Monomoy Properties REIT, LLC (“Monomoy REIT”) from KLIM to catalyze growth across the Monomoy industrial real estate platform recently consolidated under Great Elm Real Estate Ventures, LLC (“Real Estate Ventures”)
  • KLIM appoints board representatives at both GEG and Monomoy REIT, underscoring its commitment to a long-term partnership

PALM BEACH GARDENS, Fla., July 31, 2025 (GLOBE NEWSWIRE) --  Great Elm Group, Inc. (“we,” “us,” “our,” “GEG” or “Great Elm,”) (NASDAQ: GEG), a publicly traded alternative asset manager, today announced a transformational strategic partnership with KLIM, an institutional alternative investment firm focused on opportunistic credit strategies including real estate with over $30 billion in assets under management. This partnership delivers up to $150 million in leverageable capital to support continued growth across Great Elm’s real estate platform, which includes Monomoy REIT, Monomoy CRE (MCRE), Monomoy Construction Services (MCS), and Monomoy BTS (MBTS) (together “Monomoy”). Monomoy offers a full-service suite of project management, procurement, construction management, asset management, market analysis and feasibility services for its industrial real estate tenants.

Under the terms of the transaction, KLIM is providing an initial $100 million term loan to Monomoy REIT, and the 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: MCRE, MCS, and MBTS.

“KLIM’s investment strengthens our position as a full-spectrum real estate enterprise,” said Jason Reese, Chief Executive Officer of Great Elm. “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.”

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.”

About the Monomoy Platform

Monomoy Properties REIT, LLC (REIT) is a private real estate investment trust with approximately $400 million of diversified net leased IOS assets. Backed by disciplined investment principles and a long-term view, the REIT provides investors with exposure to mission-critical facilities occupied by high-quality tenants. The REIT offers investors returns through dividends and long-term capital appreciation.

Great Elm Real Estate Ventures (Real Estate Ventures), a newly created entity comprised of wholly owned subsidiaries of GEG, brings together a vertically integrated group of real estate-focused businesses, each playing a strategic role in delivering best-in-class industrial outdoor storage (IOS) properties across the United States. The wholly owned subsidiaries of GEG include the following:

Monomoy CRE, LLC (MCRE) serves as the real estate asset manager at the core of the Monomoy platform. MCRE is responsible for executing Monomoy Properties REIT’s day-to-day investment strategy while also sourcing and identifying prime IOS real estate opportunities for development by BTS. With deep market expertise and a proactive approach, MCRE ensures seamless coordination across acquisition, development, and asset management functions.

Monomoy BTS Corp. (BTS) focuses on acquiring land and developing custom-built IOS properties tailored to tenant needs. Each project is executed with precision, supporting business growth and operational efficiency for its clients.

Monomoy Construction Services, LLC (MCS) offers full-service procurement and construction management. MCS serves the REIT, BTS, and select third-party clients, ensuring consistent delivery, quality, cost control, and timely execution.

Together, these entities create a powerful, end-to-end real estate platform that combines deep market insight, professional asset management services investment expertise, and turnkey execution capabilities to generate long-term value for tenants and investors alike.

Transforming Into a Full-Service Real Estate Platform

This 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.

Strategic and Financial Impact

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 Conference Call & Webcast Information

When: Friday, August 1, 2025, 8:30 a.m. Eastern Time (ET)

Call: All interested parties are invited to participate in the conference call by dialing +1 (877) 407-0752; international callers should dial +1 (201) 389-0912. Participants should enter the Conference ID 13755229 if asked.

Webcast: The conference call will be webcast simultaneously and can be accessed here. A copy of the slide presentation accompanying the conference call, can be found here.

About Kennedy Lewis Investment Management, LLC

Kennedy Lewis is a credit focused alternative investment manager 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).

About Great Elm Group, Inc.

Great Elm Group, Inc. (NASDAQ: GEG) 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. Learn more at www.greatelmgroup.com.

About Great Elm Real Estate Ventures

Great Elm Real Estate Ventures, a wholly owned subsidiary of GEG, consolidates the Monomoy real estate platform comprised of Monomoy CRE, LLC (MCRE), Monomoy Construction Services, LLC (MCS), and Monomoy BTS Corp (MBTS). Great Elm Real Estate Ventures operates as a full-service industrial outdoor space (IOS) enterprise that provides solutions for our tenants through property management, real estate investments, construction and development. Through the Monomoy platform, Real Estate Ventures invests in build-to-suit and existing Class A, B, and C single-tenant industrial properties across the US, focusing on equipment rental, building supply, materials, manufacturing, warehousing, distribution, and logistics, while specifically targeting critical markets with economic growth.

Cautionary Statement Regarding Forward-Looking Statements

Statements in this press release that are “forward-looking” statements, including statements regarding expected benefits from the transaction, growth, profitability, acquisition opportunities involve risks and uncertainties that may individually or collectively impact the matters described herein. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made and represent GEG’s assumptions and expectations in light of currently available information. These statements involve risks, variables and uncertainties, and GEG’s actual performance results may differ from those projected, and any such differences may be material. For information on certain factors that could cause actual events or results to differ materially from GEG’s expectations, please see GEG’s filings with the Securities and Exchange Commission (“SEC”), including its most recent annual report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Additional information relating to GEG’s financial position and results of operations is also contained in GEG’s annual and quarterly reports filed with the SEC and available for download at its website www.greatelmgroup.com or at the SEC website www.sec.gov.

This press release does not constitute an offer of any securities for sale.

Media & Investor Contact:
Investor Relations
geginvestorrelations@greatelm.com


FAQ

What is the value of Kennedy Lewis Investment Management's investment in Great Elm Group (GEG)?

KLIM is providing a $150 million debt investment ($100 million initial term loan with $50 million option) and purchasing 4.9% of GEG's common stock at $2.11 per share.

How will the KLIM partnership affect Great Elm Group's real estate operations?

The partnership provides up to $150 million in leverageable capital to expand GEG's real estate platform, which includes Monomoy REIT, Monomoy CRE, Monomoy Construction Services, and Monomoy BTS.

What ownership stake will Kennedy Lewis Investment Management have in GEG's real estate ventures?

KLIM will hold an initial 15% profits interest in Great Elm Real Estate Ventures, which may increase to 20% under certain circumstances.

What is the purchase price of KLIM's equity investment in Great Elm Group?

KLIM is purchasing 4.9% of GEG's common stock at the market price of $2.11 per share.

How will KLIM be involved in Great Elm Group's governance?

KLIM will appoint board representatives at both GEG and Monomoy REIT, demonstrating their commitment as a long-term strategic partner.
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