Great Elm Soars 27.7% on $150M Kennedy Lewis Real Estate Investment
By ATTN Desk · Editorial oversight: Sean Han
Introduction
Great Elm Group Inc. (NASDAQ: GEG) is a publicly traded alternative asset manager headquartered in Palm Beach Gardens, Florida. The company invests across private credit, real estate, and strategic partnerships. On September 3, 2025, GEG shares closed at $3.27, reflecting a 27.73% increase in a trading session with a volume of 1,777,219 shares.
Corporate Structure
Formed in 2016, Great Elm Group serves as the external investment manager for pooled funds and accounts, including the business development company Great Elm Capital Corp. (NASDAQ: GECC). According to LinkedIn, the firm employs between 11 and 50 professionals. Its real estate platform includes Monomoy Properties REIT, which operates under a term loan and profit interest structure with strategic partners.
Great Elm Group by Febrian Zakaria
Recent Developments and News
- On August 29, 2025, an amended Schedule 13D/A filing reported that Northern Right Capital Management, L.P. holds 5,368,223 shares, representing 15.6% of the class, while Northern Right Capital (QP), L.P. holds 1,662,331 shares, equivalent to 4.8%. The filing mentioned the potential for the conversion of PIK Notes after July 15, 2026.
- On September 2, 2025, GEG filed both an 8-K and its annual 10-K report. The 8-K covered items 2.02 and 9.01, while the 10-K included annual financial statements and risk disclosures.
- On September 2, 2025, law firm Akin advised Kennedy Lewis Investment Management on a $150 million strategic investment, which includes a $100 million term loan to Monomoy Properties REIT, an option for an additional $50 million, a 4.9% purchase of common stock, and a 15% profits interest in Great Elm Real Estate Ventures, LLC. Kennedy Lewis will also appoint a board representative at both Great Elm and Monomoy REIT.
Financial and Strategic Analysis
As of September 2, 2025, Yahoo Finance data provides the following metrics:
| Metric | Value |
|---|---|
| Market Capitalization | $74.99 million |
| Enterprise Value | $44.81 million |
| Price/Sales (TTM) | 3.73 |
| Price/Book (MRQ) | 1.31 |
| EV/Revenue | 2.28 |
| EV/EBITDA | 9.39 |
| Profit Margin | 79.01% |
| Return on Assets (TTM) | –3.40% |
| Return on Equity (TTM) | 20.61% |
| Revenue (TTM) | $16.32 million |
| Net Income (TTM) | $12.89 million |
| Diluted EPS (TTM) | –$0.05 |
| Total Cash (MRQ) | $109.45 million |
| Total Debt/Equity (MRQ) | 77.59% |
| 52-Week Range | $1.70–$2.56 |
| Day’s Range (9/2/2025) | $2.31–$2.56 |
Great Elm’s balance sheet shows total cash exceeding total debt, while profitability ratios reflect both positive net income and a negative EPS, which may be subject to share dilution or one-time adjustments. The partnership with Kennedy Lewis is expected to enhance liquidity for the real estate platform and align long-term incentives through profit interests and board oversight.
Market Position and Industry Context
Great Elm operates within the alternative asset management sector, competing with other asset managers and business development companies. Its market capitalization of approximately $75 million and enterprise value of about $45 million positions it among smaller-cap peers. Valuation multiples, such as a P/S ratio of 3.73 and an EV/EBITDA of 9.39, align with mid-range industry levels. The firm’s focus on private credit and real estate, particularly through Monomoy Properties REIT, differentiates its product offerings from those of managers concentrated in traditional hedge funds or venture capital. Recent governance developments, including board appointments for strategic investors, demonstrate a trend toward aligning interests between asset managers and their capital partners.
tl;dr
Kennedy Lewis committed $150 million on September 2, 2025, to Great Elm’s real estate platform—$100 million as a term loan and an option for $50 million—with a concurrent 4.9% equity stake and 15% profits interest. GEG filed an 8-K and its 2025 annual report on September 2, 2025, and a Schedule 13D/A on August 29, 2025, indicated Northern Right Capital holding 15.6% of shares with PIK Notes convertible after July 15, 2026. Shares increased 27.73% on September 3, 2025, amid these developments and ongoing liquidity enhancements.