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Great Elm Group Sells a Majority Interest in Forest Investments, Inc. to an Affiliate of JPMorgan Chase & Co.

PRESS RELEASE: Paid content from Globe Newswire
Press release content from Globe Newswire. The AP news staff was not involved in its creation.
January 3, 2023 GMT

WALTHAM, Mass., Jan. 03, 2023 (GLOBE NEWSWIRE) -- Great Elm Group, Inc. (“we,” “us,” “our,” “GEG” or “Great Elm,”) (NASDAQ: GEG), an investment management company, today announced its sale of a majority of its ownership interest in Forest Investments, Inc. (“Forest”) to J.P. Morgan Broker-Dealer Holdings Inc. (“JPM”).

Transaction Highlights

  • GEG has sold 61% of its direct and indirect common equity of Forest to JPM for approximately $18 million in cash.
  • Together with its purchase of 20% of the common equity of Forest in December 2020, JPM owns 81% of Forest as of December 30, 2022.
  • GEG has the right to put its remaining 19% ownership interest in Forest for cash proceeds of approximately $27 million.

Management Commentary

Jason Reese, Executive Chairman of GEG, said, “The Forest transaction represents a successful outcome for Great Elm’s shareholders. This marks the latest in a series of strategic actions taken to enhance our focus and capabilities across our core investment management strategy. We are pleased to have worked with JPM as a financial partner in Forest. This transaction underscores the ability for Great Elm to raise capital as it looks to grow its investment management business.”

Transaction Terms

GEG has sold 61% of its direct and indirect interests in Forest to JPM for approximately $18 million. The transaction has been structured such that GEG has the right to put 19% of its remaining interest in Forest for approximately $27 million based on the increase in the book value of GEG’s remaining 19% interest in Forest.

About Great Elm Group, Inc.
Great Elm Group, Inc. (NASDAQ: GEG) is a publicly-traded, investment management company focused on growing a scalable and diversified portfolio of long-duration, permanent capital vehicles across corporate credit, specialty finance, real estate and other asset classes. GEG and its subsidiaries currently manage Great Elm Capital Corp., a publicly-traded business development company, and Monomoy Properties REIT, LLC, an industrial-focused real estate investment trust, in addition to other investments. GEG’s website can be found at www.greatelmgroup.com.

Media & Investor Contact:

geginvestorrelations@greatelmcap.com