Ecofin Sustainable and Social Impact Term Fund (TEAF) Announces Private Investment Monetization Activity
The Ecofin Sustainable and Social Impact Term Fund (NYSE: TEAF) announced strong returns from the monetization of private debt investments in July. Notably, the bonds from PureCycle Technologies, a polypropylene recycling facility, were sold at a profit, achieving a 16.0% internal rate of return. MaST Community Charter School III's bonds were called, providing a 10.4% return as the school accessed public markets. The fund realized approximately $12M, reducing private investment allocation from 51% to 47%. TEAF emphasizes ongoing investment in sustainable equities as market valuations present compelling opportunities.
- Realized approximately $12M from private debt investments.
- Achieved strong internal rates of return: 16.0% for PureCycle and 10.4% for MaST III.
- Reduced private investment allocation from 51% to 47%, indicating successful monetization.
- None.
Ecofin Sustainable and Social Impact Term Fund (NYSE: TEAF) announces positive outcomes from the monetization of two private debt investments in the month of July: PureCycle Technologies Series C (“PureCycle”), an Ironton, OH polypropylene plastics recycling facility utilizing non-chemical technology in the waste transition segment, and MaST Community Charter School III (“MaST III”), which opened in the fall of 2019 in Philadelphia, PA.
PureCycle bonds were sold in the secondary market at a profit as the market anticipated the innovative recycling methods to be utilized. MaST III bonds were called as the school’s operations grew to a level in which accessing the public bond market was a possibility and most economical. These investments delivered strong internal rates of return of
“We consider this a fitting time for monetization activity to take place as TEAF and its investors were able to help bridge the path for both companies to cultivate their facilities before obtaining support from the secondary and public capital markets and also provides us the opportunity to invest in sustainable listed equities at a time where we see these investments lagging broader equity markets and having compelling valuations,” said Nick Holmes, Managing Director and Portfolio Manager. “This activity highlights the liquidity and shorter-term nature of the fund’s private debt investments.”
Additionally, TEAF provides an update on the fund’s private investments, portfolio asset allocation, structure types and impact statistics as of July 31, 2021, on the company website here. On a monthly basis, details on each private deal that has taken place over the prior month will be published here. The list includes all deals completed since the fund’s inception through July 31, 2021, including PureCycle and MaST III. Updates will continue to be posted on a monthly basis until the fund reaches its target of
For additional information on this fund, please visit cef.ecofininvest.com.
About Ecofin
Ecofin is a sustainable investment firm dedicated to uniting ecology and finance. Our mission is to generate strong risk-adjusted returns while optimizing investors’ impact on society. We are socially minded, ESG-attentive investors, harnessing years of expertise investing in sustainable infrastructure, energy transition, clean water & environment and social impact. Our strategies are accessible through a variety of investment solutions and seek to achieve positive impacts that align with UN Sustainable Development Goals by addressing pressing global issues surrounding climate action, clean energy, water, education, healthcare and sustainable communities. Ecofin Investments, LLC is the parent of registered investment advisers Ecofin Advisors, LLC and Ecofin Advisors Limited (collectively “Ecofin”). To learn more, please visit www.ecofininvest.com.
Tortoise Capital Advisors, L.L.C. (also dba TCA Advisors) (“TCA”) is the adviser to Ecofin Sustainable and Social Impact Term Fund and Ecofin Advisors Limited is the fund’s sub-adviser.
Safe harbor statement
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains certain statements that may include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are "forward-looking statements." Although the fund and TCA believe that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the fund’s reports that are filed with the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required by law, the fund and TCA do not assume a duty to update this forward-looking statement.
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