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- Douglas Elliman Secures $50 Million Growth Investment from Kennedy Lewis
Douglas Elliman Secures $50 Million Growth Investment from Kennedy Lewis
Slice of Real Estate Team
July 08, 2024
Key Highlights:
Douglas Elliman Inc. secures a $50 million growth investment from Kennedy Lewis Investment Management LLC.
$50 million senior secured convertible notes issued, due July 2, 2029.
Convertible notes bear 7.0% interest annually, with conversion rights into common stock.
Preliminary Q2 financial results: Gross transaction value expected between $10.25 billion and $11.25 billion.
New Board Appointments: David K. Chene and Patrick J. Bartels Jr. join the board.
Source (Business Wire)
Notable Quotes:
“Kennedy Lewis’ investment in Douglas Elliman is a testament to our agents, business model and strategic plan. With deep experience in residential real estate, we are pleased Kennedy Lewis has chosen to support Douglas Elliman’s strategic initiatives and look forward to tapping into the firm’s network and knowledge base as we work together to drive long-term stockholder value.”
“We are excited to partner with Douglas Elliman, a firm with one of the strongest brands and most reputable agents in residential real estate and a compelling growth opportunity, and work with the management team to fully capitalize on that opportunity. Douglas Elliman operates in an industry we understand well, having studied and invested in residential real estate and homebuilders through multiple cycles.”
Our Take:
Douglas Elliman’s recent $50 million investment from Kennedy Lewis is a significant boost for the company's strategic growth and expansion plans. By issuing senior secured convertible notes, Douglas Elliman not only strengthens its balance sheet but also secures a strategic partner with deep expertise in residential real estate. This partnership is likely to enhance Douglas Elliman’s market position, especially in luxury markets, and provide valuable insights and resources to drive long-term stockholder value. The preliminary Q2 financial results indicate strong performance, underscoring the company's robust market presence and strategic direction. The addition of David K. Chene and Patrick J. Bartels Jr. to the board further solidifies the firm’s leadership and governance as it navigates this new phase of growth.