Ninepoint Partners, a Canadian alternative investment manager, and Third Eye Capital, 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 that funds exited their senior debt and equity holdings in Cricket Energy. The funds participated in Third Eye Capital’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,” Ramesh Kashyap, managing director and head of Ninepoint’s alternative income group, said. “This allowed Cricket to invest its cash flows for growth and value creation.”
The repayment by Cricket comes on the heels of the 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.
“This is yet another example of our private credit funds supporting Canadian businesses who aren’t served by traditional lending sources,” John Wilson, co-CEO and managing partner of Ninepoint, said. “The result is economic growth, innovation and job creation in Canada which wouldn’t occur otherwise, along with compelling returns for our investors.”