Enhanced Community Development Awarded $65 Million in New Markets Tax Credits

Rhea-AI Summary

P10, Inc. (NYSE: PX) announced that its subsidiary Enhanced Community Development, part of Enhanced Capital Group , has been awarded a $65 million allocation from the New Markets Tax Credits (NMTC) program. This marks the firm's 10th Federal NMTC award, bringing their total to $495 million since 2006. The U.S. Treasury Department allocated a total of $5 billion to 104 Community Development Entities for the 2023 round.

Enhanced Community Development has deployed $750 million in federal and state NMTC investments across the United States, supporting over 130 projects in low-income communities. The NMTC program, created in 2000, aims to drive economic revitalization in underserved areas by attracting private capital investment through federal tax credit incentives.

Positive

• Awarded $65 million allocation from New Markets Tax Credits program
• 10th Federal NMTC award, totaling $495 million since 2006
• Deployed $750 million in federal and state NMTC investments across the US
• Supported over 130 projects in low-income communities

Negative

• None.

Insights

Financial Analyst

The $65 million New Markets Tax Credit (NMTC) allocation awarded to Enhanced Community Development, a subsidiary of P10, Inc., is a significant development for the company. This award brings their total NMTC allocations to $495 million since 2006, demonstrating a consistent track record in this program. The NMTC program is a valuable tool for attracting private capital to underserved communities and Enhanced Capital's success in securing these allocations positions them well in the impact investing space. With $750 million already deployed in federal and state NMTC investments, this new allocation will further strengthen their market position and potential for revenue generation. While the direct financial impact on P10's bottom line isn't specified, the continued success in this program likely enhances their reputation and could lead to increased business opportunities in the growing field of socially responsible investing.

Market Research Analyst

This NMTC allocation reinforces P10's position in the private markets solutions sector, particularly in impact investing. The 10th consecutive award demonstrates Enhanced Capital's expertise and consistent performance in a competitive field, as only 104 entities received allocations out of the $5 billion total. This track record could attract more investors looking for socially responsible investment opportunities, potentially expanding P10's client base and assets under management. The NMTC program's focus on job creation and real estate development in low-income areas aligns with growing investor interest in ESG (Environmental, Social and Governance) factors. With over 894,000 jobs created or retained through the program nationally, Enhanced Capital's participation in this impactful initiative could resonate well with both institutional and retail investors, potentially driving long-term growth for P10.

Recognition is the firm’s 10th Federal NMTC award, totaling $495 million since 2006

NEW YORK, Oct. 02, 2024 (GLOBE NEWSWIRE) -- P10, Inc. (NYSE: PX), a leading private markets solutions provider, today announced Enhanced Community Development, a part of P10 subsidiary Enhanced Capital Group LLC, was awarded a $65 million allocation from the New Markets Tax Credits (NMTC) program administered by the U.S. Treasury Department's Community Development Financial Institutions Fund. Under the program, the U.S. Treasury Department allocated a total of $5 billion to 104 Community Development Entities for the 2023 round.

“Enhanced Community Development is continuing to meet the needs of underserved communities around the country,” said Luke Sarsfield, P10 Chairman and Chief Executive Officer. “Enhanced Capital’s team brings a mission-driven focus to their investments, providing financing solutions that generate positive social outcomes in the lower-middle market. This federal NMTC allocation further strengthens their ability to create opportunities that have a lasting impact.”

Enhanced Community Development has deployed $750 million in federal and state NMTC investments across the United States, supporting over 130 projects and fostering economic activity in low-income communities. Previous NMTC-funded projects include manufacturing companies, healthcare facilities, educational institutions, and community centers that serve the needs of economically disadvantaged populations.

"We are incredibly honored to receive this $65 million allocation, which enables us to significantly increase the impact on the communities that need it most," said Richard Montgomery, Managing Partner at Enhanced Capital. "The New Markets Tax Credit program is a powerful tool for creating meaningful change in areas often overlooked by many investors and traditional sources of capital."

The NMTC program, created by Congress in 2000, is designed to drive economic revitalization in underserved communities by attracting private capital investment through federal tax credit incentives. The program has facilitated the deployment of more than $63 billion in low-income communities across the U.S., resulting in the creation or retention of over 894,000 jobs and the construction or rehabilitation of nearly 260 million square feet of commercial real estate.¹

For more information on Enhanced Community Development and its work in revitalizing underserved communities, please visit www.enhancedcapital.com.

About P10
P10 is a leading multi-asset class private markets solutions provider in the alternative asset management industry. P10’s mission is to provide its investors differentiated access to a broad set of investment solutions that address their diverse investment needs within private markets. As of June 30, 2024, P10 has a global investor base of more than 3,700 investors across 50 states, 60 countries, and six continents, which includes some of the world’s largest pension funds, endowments, foundations, corporate pensions, and financial institutions. Visit www.p10alts.com.

About Enhanced Community Development:
Enhanced Community Development (ECD), a subsidiary of Enhanced Capital, is a federally designated Community Development Entity focused on the financing needs of businesses and developments located in or serving low-income communities. ECD proudly participates in the federal New Markets Tax Credit (NMTC) Program and a variety of state NMTC Programs. ECD is an Equal Opportunity Provider. Since 2006, ECD has deployed $750 million in federal and state NMTC allocation to job-creating businesses and organizations in economically distressed communities.

About Enhanced Capital:
Enhanced Capital Group, LLC is a leading impact investment firm with over 24 years of experience investing in Climate Finance, Impact Real Estate, and Small Business Lending. From inception in 1999 through June 30th, 2024, inclusive of proprietary assets and assets managed by affiliates, Enhanced Capital has raised a total of $6.0 billion. Of the total assets under management, impact assets represent $3.8 billion invested in over 950 projects and businesses throughout 40 states, Washington DC, and Puerto Rico and does not include investments made by non-impact affiliates.

For more information, visit www.enhancedcapital.com.

Forward-Looking Statements
Some of the statements in this release may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Words such as “will,” “expect,” “believe,” “estimate,” “continue,” “anticipate,” “intend,” “plan” and similar expressions are intended to identify these forward-looking statements. Forward-looking statements discuss management’s current expectations and projections relating to our financial position, results of operations, plans, objectives, future performance, and business. The inclusion of any forward-looking information in this release should not be regarded as a representation that the future plans, estimates, or expectations contemplated will be achieved. Forward-looking statements reflect management’s current plans, estimates, and expectations, and are inherently uncertain. All forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors that may cause actual results to be materially different; global and domestic market and business conditions; successful execution of business and growth strategies and regulatory factors relevant to our business; changes in our tax status; our ability to maintain our fee structure; our ability to attract and retain key employees; our ability to manage our obligations under our debt agreements; our ability to make acquisitions and successfully integrate the businesses we acquire; assumptions relating to our operations, financial results, financial condition, business prospects and growth strategy; and our ability to manage the effects of events outside of our control. The foregoing list of factors is not exhaustive. For more information regarding these risks and uncertainties as well as additional risks that we face, you should refer to the “Risk Factors” included in our annual report on Form 10-K for the year ended December 31, 2023, filed with the U.S. Securities and Exchange Commission (“SEC”) on March 13, 2024, and in our subsequent reports filed from time to time with the SEC. The forward-looking statements included in this release are made only as of the date hereof. We undertake no obligation to update or revise any forward-looking statement as a result of new information or future events, except as otherwise required by law.

Ownership Limitations
P10’s Certificate of Incorporation contains certain provisions for the protection of tax benefits relating to P10’s net operating losses. Such provisions generally void transfers of shares that would result in the creation of a new 4.99% shareholder or result in an existing 4.99% shareholder acquiring additional shares of P10, and it expires at the third anniversary of the IPO, October 2024.

Disclaimer:
Enhanced Capital Group, LLC, and its affiliates, is an Equal Opportunity Provider. The information presented is for discussion purposes only and is neither an offer to sell nor a solicitation of any offer to buy any securities, investment product, or investment advisory services. This is not an offering or the solicitation of an offer to purchase an interest in a fund.

P10 Investor Contact:
info@p10alts.com

P10 Media Contact:
Taylor Donahue
pro-p10@prosek.com

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¹ “The U.S. Department of the Treasury Announces $5 Billion in New Markets Tax Credits,” Department of the Treasury, September 19, 2024. https://www.cdfifund.gov/news/603

FAQ

What was the amount of the New Markets Tax Credits allocation awarded to Enhanced Community Development?

Enhanced Community Development, a part of P10 (NYSE: PX) subsidiary Enhanced Capital Group , was awarded a $65 million allocation from the New Markets Tax Credits (NMTC) program.

How many NMTC awards has Enhanced Community Development received since 2006?

This is Enhanced Community Development's 10th Federal NMTC award, bringing their total to $495 million since 2006.

How much has Enhanced Community Development deployed in NMTC investments?

Enhanced Community Development has deployed $750 million in federal and state NMTC investments across the United States.

How many projects has Enhanced Community Development supported with NMTC investments?

Enhanced Community Development has supported over 130 projects in low-income communities with their NMTC investments.