Great Elm Group Stock Price, News & Analysis

Great Elm Group, Inc. (NASDAQ: GEG) is a publicly traded alternative asset manager focused on building a scalable and diversified portfolio of long-duration and permanent capital vehicles. According to the company’s public disclosures, its investment activities span credit, real estate, specialty finance, and other alternative strategies. Great Elm Group and its subsidiaries manage Great Elm Capital Corp. (GECC), a publicly traded business development company, and Monomoy Properties REIT, LLC, an industrial outdoor storage (IOS) focused real estate investment trust, along with other investments.

Business model and core activities

Great Elm Group describes itself as an asset manager that seeks to grow fee-paying assets under management (FPAUM) and overall assets under management (AUM) across its credit and real estate platforms. In its public communications, the company highlights revenue contributions from management fees, incentive fees related to GECC, and real estate-related revenues, including project management, rental income, and construction fees within its Monomoy real estate platform.

On the credit side, Great Elm Group manages GECC and other credit strategies, including the Great Elm Credit Income Fund. Company materials note that GECC’s performance and capital raising activities have contributed to growth in FPAUM and management and incentive fees paid to Great Elm. The firm also references private credit strategies and special purpose vehicles among its investment activities.

Real estate and the Monomoy platform

In real estate, Great Elm Group has developed an integrated platform under the Monomoy brand. Public releases describe Monomoy Properties REIT, LLC as an IOS-focused real estate investment trust and refer to a broader industrial real estate enterprise that includes:

• Monomoy CRE, LLC (MCRE) – a real estate asset manager that manages Monomoy REIT and sources IOS real estate opportunities.
• Monomoy BTS, Corp. (MBTS) – a build-to-suit development arm that acquires land and develops custom industrial properties.
• Monomoy Construction Services, LLC (MCS) – a full-service procurement and construction management business formed through the acquisition of the assets of Greenfield CRE and the combination with Monomoy BTS Construction Management.

Great Elm Group has formed Great Elm Real Estate Ventures, LLC, a holding entity that consolidates these real estate subsidiaries. Company disclosures describe this structure as a vertically integrated real estate enterprise serving the IOS sector, offering services that include property management, real estate investments, construction, development, project management, procurement, asset management, market analysis, and feasibility work for industrial tenants.

Strategic partnerships and capital relationships

Great Elm Group has reported several strategic capital relationships in its public filings and press releases. These include a strategic partnership with Kennedy Lewis Investment Management LLC (KLIM), under which funds affiliated with KLIM purchased a minority equity stake in Great Elm Group and agreed to provide term loans to Monomoy Properties REIT. The company states that this financing is intended to support growth across its industrial real estate platform and that KLIM holds a profits interest in Great Elm Real Estate Ventures.

Great Elm Group has also disclosed a strategic investment from Woodstead Value Fund, L.P., which purchased newly issued shares of GEG common stock and received long-term warrants. In connection with this investment, a Woodstead-affiliated investor joined the company’s Board of Directors. These transactions are described by the company as providing growth capital and aligning institutional partners with its core credit and real estate verticals.

Capital markets presence

GEG common stock is listed on the Nasdaq Global Select Market under the symbol GEG. The company has also issued 7.25% Notes due 2027, which trade on the Nasdaq Stock Market under the symbol GEGGL, as reflected in its Form 8-K filings. Great Elm Group’s disclosures describe the use of capital raises, including equity and debt offerings at GECC and financing arrangements at Monomoy REIT, as part of its approach to expanding assets under management and supporting its alternative asset management platform.

Corporate governance and stockholder communications

Great Elm Group files periodic reports, proxy statements, and current reports with the U.S. Securities and Exchange Commission. Its definitive proxy statement outlines matters such as the election of directors, ratification of the independent registered public accounting firm, advisory votes on executive compensation, and approval of long-term incentive compensation plans. The company also describes the use of virtual annual stockholder meetings and provides details on how stockholders can vote and access proxy materials.

Summary of GEG’s role in the alternative asset space

Across its disclosures, Great Elm Group presents itself as an alternative asset manager with two primary operating pillars:

• Credit – managing GECC and other credit strategies, with fee revenue linked to FPAUM, incentive fees, and performance of credit investments.
• Industrial real estate – managing Monomoy Properties REIT and a related services platform that includes asset management, build-to-suit development, and construction management for industrial properties, particularly in the IOS segment.

Through these activities, Great Elm Group focuses on long-duration and permanent capital vehicles in alternative asset classes, as described in its public press releases and SEC filings.