Circle of friends needing somewhere to sleep next to Great Lake (7)
I believe the answer is:
coterie
'circle of friends' is the definition.
(I've seen this in another clue)
'somewhere to sleep next to great lake' is the wordplay.
'somewhere to sleep' becomes 'cot' (a baby's bed).
'next to' says to put letters next to each other.
'great lake' becomes 'erie' (Erie is one of the Great Lakes).
'cot'+'erie'='COTERIE'
'needing' acts as a link.
(Other definitions for coterie that I've seen before include "In-group" , "Set" , "EEC trio in exclusive group" , "Small exclusive circle with a common purpose" , "Literary circle" .)