Ninepoint Partners Announces Partial Exit of Investments in Flagship Private Credit Strategy
October 16 2023 - 2:01PM
Ninepoint Partners LP (“Ninepoint”), one of Canada’s leading
alternative investment managers, and Third Eye Capital Corporation
(“TEC” or “Third Eye Capital”), whose affiliate, Third Eye Capital
Management Inc., is sub-advisor of the Ninepoint-TEC Private Credit
Fund and the Ninepoint-TEC Private Credit Fund II (“the
Funds”), today announced the partial realization of secured debt
investments made to subsidiaries of Aemetis, Inc. (NASDAQ: AMTX)
(“Aemetis” or the “Company”), a renewable fuels company focused on
low carbon intensity products.
The Funds will receive approximately US$24 million from the
Company’s sale two weeks ago of US$53 million in Inflation
Reduction Act (IRA) investment tax credits. The sale is Aemetis’
first transaction involving the IRA tax credits, which were
generated from biogas projects built by its subsidiary. The Company
said it expects to be able to qualify for more than US$800 million
in IRA investment and production tax credits over the next four
years.
“This is just the latest in a series of successful liquidity
events for the Ninepoint-TEC private credit strategy and follows on
the heels of two full loan exits in recent months,” said John
Wilson, Ninepoint Managing Partner and co-Chief Executive Officer.
“Private credit is increasingly filling an important role in the
economy for quality businesses that don’t have access to
traditional bank lenders.”
“Aemetis’ groundbreaking transaction is a testament to their
innovation and to our strategic guidance, as we help architect
capital solutions that propel companies toward a net-zero future.
Our extensive track record in sustainability investments isn't
merely a niche; it's a burgeoning sector that promises robust
returns for our investors, tangible benefits for our borrowers, and
a sustainable future for all," said Arif Bhalwani, Chief Executive
Officer at Third Eye Capital.
The proceeds from the transaction will provide the Funds with
additional liquidity to service their cash requirements and will
allow the Ninepoint-TEC Private Credit Fund II to continue to
invest and grow its private credit strategy.
The partial repayment follows other successful exits in the
Funds this year, including a repayment by Cricket Energy Holdings
Inc. in August and the successful refinancing at Pieridae Energy
Limited in June.
Since inception in 2010, the Ninepoint-TEC Private Credit
strategy has produced an annualized net return of 10.20% (at August
30, 2023) which includes a net return of 8.55% in 2022, a
challenging year for equity and fixed income markets.
About Ninepoint PartnersBased in Toronto,
Ninepoint Partners LP is one of Canada’s leading alternative
investment management firms overseeing approximately $8 billion in
assets under management and institutional contracts. Committed to
helping investors explore innovative investment solutions that have
the potential to enhance returns and manage portfolio risk,
Ninepoint offers a diverse set of alternative strategies spanning
Equities, Fixed Income, Alternative Income, Real Assets, F/X and
Digital Assets.
For more information on Ninepoint, please
visit www.ninepoint.com or contact us at 416-362-7172 or
1-888-362-7172 or invest@ninepoint.com.
Media InquiriesScott Deveau/Kate
SylvesterLongacre Square Partnersninepoint@longacresquare.com
Ninepoint-TEC Private Credit Strategy |
Net
Annual Return in % |
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2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
2022 |
Avg Annual Return |
13.67 |
10.32 |
10.97 |
13.04 |
8.11 |
12.06 |
10.76 |
10.58 |
8.57 |
5.68 |
10.43 |
8.55 |
10.20 |
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Please Note: Above chart is a performance composite and groups
the performance of the following funds:
1) Sprott Private Credit LP (PC LP), Class F, management fee
1.80% from June 30, 2010 to December 31, 2011; PC LP merged into
SPCT effective December 31, 2011.
2) Sprott Private Credit Trust (SPCT), Class F, management fee
1.60% from January 2012 to July 2017; SPCT merged into SPCT II
effective July 31, 2017 at which time SPCT II was renamed
Sprott-TEC Private Credit Trust.
3) Sprott Private Credit Trust II (SPCT II), Class F, management
fee 1.30% from July 2016 to July 2017; for this period, because
more than one fund existed, the performance was calculated using
the weighted average based on assets under management. Sprott-TEC
Private Credit Trust was again renamed into Ninepoint-TEC Private
Credit Fund on May 1, 2018.
4) Ninepoint-TEC Private Credit Fund (TEC), Class F1, management
fee 1.45% from August, 2017 to September 2022. On September 30,
2022, unitholder approval was received to restructure TEC whereby
TEC was terminated and Ninepoint-TEC Private Credit Fund II (the
Fund) was launched. Since TEC’s objective changed as a result of
termination, it is not included in composite performance post
September 2022.
5) Ninepoint-TEC Private Credit Fund II (the Fund), Class F1,
management fee 1.45% from October, 2022 to current date.
The funds aggregated for the performance composite all share a
similar investment objective and strategy; return calculations are
net of fees.
Effective August 1, 2017 the investment manager of the Fund
changed from Sprott Asset Management LP to Ninepoint Partners LP.
Historical returns are not indicative of future performance.
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