Subject: MUTUAL FUNDS
Ninepoint Enhances Private Credit Fund With BMO Credit Facility
TORONTO, April 27, 2023 (GLOBE NEWSWIRE) -- Ninepoint Partners LP, the manager (the "Manager" or "Ninepoint") of Ninepoint-TEC Private Credit Fund II ("Ninepoint-TEC" or the "Fund"), announced today that it has secured a revolving credit facility from BMO Bank of Montreal ("BMO") in the amount of $100 million, with $50 million committed and an additional $50 million accordion, to support the Fund's continued growth, new origination activity, and liquidity requirements. BMO acted as the Sole Arranger, Sole Bookrunner and Agent for the credit facility and conducted extensive due diligence on the Fund and its underlying loans, the Fund's sub-advisor, Third Eye Capital Management Inc., and the Fund's Manager, Ninepoint Partners.
"Securing a credit facility for the Fund by a top-tier Canadian bank is a strong endorsement of both the prospects of private credit as an asset class and the value the Ninepoint-TEC strategy offers to investors." commented John Wilson, Managing Partner and Co-CEO of Ninepoint. "Private investments are inherently less liquid and a flexible credit facility enables us to act more nimbly in closing new opportunities, managing cash flows in the Fund, and supporting the growth of the strategy."
Since its inception in 2010, the Ninepoint-TEC Strategy1 has provided investors with consistent risk-adjusted average net annualized returns of 10.37%. The Fund has achieved this by structuring primarily senior first lien loans against valuable business assets with visible potential cash flows and/or liquidation or break-up values. The Fund has consistently focused on lending to high-quality companies that are often overlooked or underappreciated by the general financial community due to perceived risk, complexity or timing.
"Compared to the public markets, the uncorrelated nature of private credit continues to benefit retail and institutional investors in diversifying their portfolios. Given recent bank failures and general tightening of credit availability, there is unprecedented opportunity for private credit to deploy capital at very attractive risk-adjusted returns" added Ramesh Kashyap, Managing Director in Ninepoint's Alternative Income Group. "Total assets under management in the global private credit asset class is expected to nearly double in size by 2027 to US$2.25 trillion2 at a compound annual growth rate of 10.4%. Furthermore, retail investor demand is expected to play a significant part in the continued growth of the asset class as investors seek out opportunities for better portfolio diversification."
About Ninepoint Partners LP
Based in Toronto, Ninepoint Partners LP is one of Canada's leading alternative investment management firms overseeing more than $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 [email protected].
About BMO Bank of Montreal
Serving customers for 200 years and counting, BMO is a highly diversified financial services provider ? the 8th largest bank, by assets, in North America. With total assets of $1.14 trillion as of October 31, 2022 and a team of diverse and highly engaged employees, BMO provides a broad range of personal and commercial banking, wealth management and investment banking products and services to 12 million customers and conducts business through three operating groups: Personal and Commercial Banking, BMO Wealth Management and BMO Capital Markets.
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1 Performance of the Ninepoint-TEC Strategy is a composite value across several different Funds which have shared the same strategy. Further details can be found at https://www.ninepoint.com/media/621110/ninepoint-tec-private-credit-fund-performance-sheet-c-f1-0223.pdf.
2 Source: Prequin.
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