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”), announced that the Funds successfully exited its senior debt and equity holdings in Cricket Energy Holdings Inc. (“Cricket”). The Funds participated in TEC’s financing of the management buyout of Cricket in December 2020.
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The exit surpassed expectations for both returns and timing and provides additional liquidity to service the cash requirements of the Funds and will further position the Ninepoint-TEC Private Credit Fund II to continue to invest and grow its private credit strategy.
“TEC structured its term loan to Cricket to allow for interest payments to be ‘paid-in-kind’ right from the outset,” said Ramesh Kashyap, Managing Director and Head of Ninepoint’s Alternative Income Group. “This allowed Cricket to invest its cash flows for growth and value creation.”
The repayment by Cricket comes on the heels of the successful refinancing and early repayment of a term loan from Pieridae Energy Limited in June 2023.
Since inception in 2010, the Ninepoint-TEC Private Credit strategy has produced an annualized net return of 10.26% which includes a net return of 8.55% in 2022, a challenging year for equity and fixed income markets.
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“This is yet another example of our private credit funds supporting Canadian businesses who aren’t served by traditional lending sources,” added John Wilson, Co-CEO and Managing Partner of Ninepoint. “The result is economic growth, innovation and job creation in Canada which wouldn’t occur otherwise, along with compelling returns for our investors.”
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.
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