Ninepoint Partners, a Canadian alternative investment manager, and Third Eye Capital Corporation, whose affiliate, Third Eye Capital Management, is sub-advisor of the Ninepoint-TEC Private Credit Fund and the Ninepoint-TEC Private Credit Fund II, announced the partial realization of secured debt investments made to subsidiaries of Aemetis, a renewable fuels company focused on low carbon intensity products.

The funds will receive approximately $24 million from the company’s sale two weeks ago of $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 $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,” John Wilson, managing partner and co-chief executive officer of Ninepoint, said. “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,” 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.