Douglas
Elliman
has
secured
a
$50
million

growth
investment
from

Kennedy
Lewis
Investment
Management,
according
to
an
announcement
on
Tuesday.
Kennedy
Lewis
is
a
credit-focused
alternative
asset
management
firm.

According
to
the
release,
this
investment
strengthens
Douglas
Elliman’s
balance
sheet
and
it
will
fuel
its
strategic
growth
and
expansion.
In
the
release,
the
firm
noted
that
Kennedy
Lewis
has
a
history
of
investing
in
the
residential
real
estate
sector
and
Douglas
Elliman
expects
that
as
part
of
this
partnership,
the
investment
firm
will
tap
into
its
industry
expertise,
which
includes
experience
in
land
and
homebuilder
finance
investments.

“Kennedy
Lewis’
investment
in
Douglas
Elliman
is
a
testament
to
our
agents,
business
model
and
strategic
plan,”
Howard
Lorber,
the
chairman
and
CEO
of
Douglas
Elliman,
said
in
a
statement.
“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.”

The
brokerage
firm
has
issued
$50
million
senior
secured
convertible
notes
due
July
2,
2029,
to
funds
advised
by
Kennedy
Lewis.
In
the
release,
the
brokerage
stated
that
the
convertible
notes
bear
interest
at
a
rate
of
7.0%
per
annum
payable
in
cash,
or,
at
Douglas
Elliman’s
election,
8.0%
per
annum
paid
in
kind,
due
semi-annually.

Additionally,
the
firm
said
that
the
notes
are
convertible
into
common
stock
at
an
initial
conversion
rate
equal
to
$1.50,
subject
to
certain
customary
anti-dilution
adjustments.
Douglas
Elliman
notes
that
as
part
of
the
agreement,
Kennedy
Lewis
will
have
the
right
for
so
long
as
such
funds
hold
at
least
one-third
of
their
initial
investment,
to
nominate
one
director
to
Douglas
Elliman’s
board.

The
first
board
appointment
as
part
of
this
investment
is
David
Chene,
who
is
the
co-founder
and
co-managing
partner
of
Kennedy
Lewis.
The
firm
also
announced
that
Patrick
Bartels
Jr.,
an
independent
director
from

Redan
Advisors
LLC,
will
join
the
board.

Chene
and
Bartels
are
succeeding
Ronald
Kramer
and
Lynn
Mestel
in
their
board
positions.

“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,”
Chene
and
Darren
Richman,
the
co-founder
and
co-managing
partner
of
Kennedy
Lewis,
said
in
a
joint
statement.

“Douglas
Elliman
operates
in
an
industry
we
understand
well,
having
studied
and
invested
in
residential
real
estate
and
homebuilders
through
multiple
cycles.
We
see
attractive
long-term
market
dynamics
in
the
growing,
luxury
markets
Douglas
Elliman
focuses
on,
and
believe
the
firm
is
well
positioned
to
utilize
additional
financial
and
strategic
resources
to
build
on
its
leading
position
in
the
space.”

Douglas
Elliman
also
announced
that
its
preliminary
unaudited
gross
transaction
value
for
the
second
quarter
is
expected
to
be
in
the
range
of
$10.25
billion
to
$11.25
billion,
compared
to
$7.1
billion
in
the
first
quarter
of
2024.
As
of
the
end
of
June,
the
company
said
it
had
$92.0
million
of
cash
and
cash
equivalents
on

its
balance
sheet,
even
after
its
first
payment
of
$7.75
million
as
part
of
its

commission
lawsuit

settlement
agreement.

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