Active Value Creation – Involvement in driving operational changes and providing actionable strategic advice to borrowers, in order to maximize value with equity participation.
Senior Secured – Security interests are primarily 1st lien and at the top of the capital structure.
Fully Collateralized – Primarily asset-based loans that are fully supported by critical business assets including accounts receivable, inventory, property, plant & equipment, mineral interests and intellectual property.
Experienced Lending Team – Seasoned, multidisciplinary professionals with significant and diverse experience at major financial institutions with backgrounds in lending, operating and investing in successful companies.
The investment objective of the Fund is to achieve superior risk-adjusted returns with minimal volatility and low correlation to most traditional asset classes, primarily by investing in a portfolio comprised of asset-based loans of companies based primarily in Canada and/or the United States.
|MTD†||YTD %†||1 YR %||3 YR %||5 YR %||10 YR %||Inception %††|
On February 28, 2022, the Fund suspended subscriptions and redemptions retroactive to February 1, 2022. The Fund remains closed to redemptions and subscriptions until completion of the proposed Fund restructuring. Please see Appendix A below for details or download here.
Terms are indicative and subject to change:
|Fund Type||Open-ended unincorporated Investment Trust|
|Strategy Inception Date||June 2010|
|Fund Inception Date||September 30, 2022|
|Distributions||Distributions will be automatically reinvested in additional Units at the Net Asset Value on the date of distribution, unless a Unitholder elects, by written notice to the Manager, to receive such distribution in cash.|
|Registered Tax Plan Status||Eligible|
|Management Fee||Class A1 Units: 2.45%
Class F1 Units: 1.45%
Class I Units: Fee determined by agreement between the Manager and Subscriber
|Management Fee Discount/Rebate||For calendar year 2022 and 2023, if each class of units does not reach a net 6% annualized return, an amount up to the full management fee will be rebated.|
|Performance Fee||See Offering Memorandum|
|Minimum Initial Investment||$10,000 accredited
|Minimum Subsequent Investment||$5,000 CDN|
|Minimum Investment Term||
12 months minimum hold.
Unitholders that redeem units within 12 months of re-opening (September 30, 2022 to September 30, 2023) will be redeemed at 95% of NAV (5% ERF) of valuation date.
After September 30, 2023 Unitholders that redeem units within 12 months of their initial purchase date will be redeemed at 98% of NAV (2% ERF) on valuation date.
All Early Redemption Charges will go to the Fund, not the Manager.
All returns and fund details are a) based on Class F1 units; b) net of fees; c) annualized if period is greater than one year.
For accredited investor requirements please consult a financial advisor or the Fund’s offering documents.
The Fund is generally exposed to the following risks. See the offering memorandum of the Fund for a description of these risks: Speculative Investment; General Investment Risk; General Economic and Market Conditions; Inflation and Supply Chain Risk; Disease and Epidemics; Risks Related to the Russian Invasion of Ukraine; Class Risk; Changes in Investment Strategy; Limited Ability to Liquidate Investment; Capital Depletion Risk; Redemptions; Redemption Cap Subject to Manager Discretion; Financial Condition, Liquidity and Capital Resources; Valuation of the Fund’s Investments; Unitholders not Entitled to Participate in Management; Reliance on the Manager; Dependence of the Manager on Key Personnel; Reliance on the Sub-Advisor; Dependence of Sub-Advisor on Key Personnel; The Sub-Advisor and Manager Receive Management Fees and Performance Fees on the Net Asset Value of the Fund, which includes Payment-in Kind payments that may never be recovered; No Ownership Interest in the Portfolio; Distributions; Potential Indemnification Obligations; Liability of Unitholders; Lack of Independent Experts Representing Unitholders; No Involvement of Unaffiliated Selling Agent; Not a Public Mutual Fund; Capital Depletion Risk; Charges to the Fund; Use of a Prime Broker to Hold Assets; Changes in Legislation; Tax Considerations; Withholding Taxes; Information Sharing Requirements and Withholding Tax Risk; Market View; Origination and Availability of Loans; Credit Risk and Default in Repayment Obligations by Borrowers; Business Risks; Non-Performing Loans; Insolvency Considerations with Respect to Borrowers; Borrower Fraud; Breach of Covenant; Concentration; Collateral; Liquidity of Underlying Investments; Fixed Income Securities; Equity Securities; Decline in the Industries in which the Fund Invests; Inability to Realize on or Dispose of Security Granted by Borrowers on a Defaulted Loan; Inability to Meet Redemption Requests Due to Illiquidity of Collateral; Risks Associated with Certain Dispositions; Distressed Investments and Special Situations; Fraudulent Conveyance, Lender Liability, Equitable Subordination and Recharacterization; Use of Leverage by Portfolio Companies; Original Issue Discount and Payment-in-Kind Instruments; Projected Operating Results; Need for Follow-On Investments; Equity Kickers Generally; Long-Term Investments; Counterparty Risk; Director Liability; Lender Liability Risks; Custody Risk; Interest Rate Risk; Currency Risk; Foreign Investment Risk; Options; Indebtedness and Use of Leverage; Hedging.
The Ninepoint-TEC Private Credit Fund II is offered on a private placement basis pursuant to an offering memorandum and is only available to investors who meet certain eligibility or minimum purchase amount requirements under applicable securities legislation. The offering memorandum contains important information about the Fund including its investment objective and strategies, purchase options, applicable management fees, performance fees, other charges and expenses, and should be read carefully before investing. Performance data represents past performance of the Fund and is not indicative of future performance. Data based on performance history of less than five years may not give prospective investors enough information to base investment decision on. Please contact your own personal advisor on your particular circumstances. This communication does not constitute an offer to sell or solicitation to purchase securities of the Fund. The information contained herein does not constitute an offer or solicitation by anyone in the United States or in any other jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors who are not resident in Canada should contact their financial advisor to determine whether securities of the Fund may be lawfully sold in their jurisdiction.
Ninepoint Partners LP obtained unitholder approval to restructure the Ninepoint-TEC Private Credit Fund on September 30, 2022. As such, Ninepoint Partners LP launched the Ninepoint-TEC Private Credit Fund II which is available for purchase through offering memorandum as of that date, in Series A1, F1, FT, and T on Fundserv. Please refer to the Offering Memorandum for complete details. For further information, please contact your Ninepoint Product Specialist.