TORONTO, Aug. 03, 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 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.
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.
"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."
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 institutional@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 | 10.26 |
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.
