TORONTO, Oct. 16, 2023 (GLOBE NEWSWIRE) -- 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 Partners
Based 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.
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| Ninepoint-TEC Private Credit Strategy | ||||||||||||
| Net Annual Return in % | ||||||||||||
| 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 |
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.
