Teachers’ Private Capital equity investment supports launch of U.S. commercial finance company
TORONTO - A US$150 million equity commitment by Ontario Teachers' Pension Plan (Teachers') is providing additional growth capital for NXT Capital, LLC, a privately held middle-market commercial finance company based in Chicago. The investment is being made through Teachers' Private Capital, the pension plan's private investment department.
NXT Capital is led by former principals of Merrill Lynch Capital and was formed earlier this year with private equity funds managed by Stone Point Capital LLC, a global firm with an extensive record of successful financial services investments, along with funds from the founding management team. A representative from Teachers' will join the NXT Board of Managers.
Through its Corporate Finance and Real Estate Finance groups, NXT targets senior financing opportunities of up to $100 million, with a typical hold size ranging from $10 million to $30 million. Since its launch in April, it has provided financing commitments in excess of $340 million spread over 17 separate transactions.
"We have been considering opportunities in the commercial finance sector for some time and are pleased to be working with Stone Point to back a proven management team," said Neil Petroff, Teachers' Executive Vice-President, Investments. "With attractive market fundamentals, NXT is well positioned to establish a solid loan portfolio and build a strong lending and fee-generating franchise."
"We are pleased to receive equity backing from Teachers' Private Capital," said Robert Radway, NXT's chairman and CEO. "The commitment from Teachers' brings NXT's total equity capitalization in excess of $450 million which, along with our current senior debt and co-lending facilities, enables us to extend nearly $1 billion in new financing commitments."
About Teachers' Private Capital
Teachers' Private Capital is one of the world's largest private equity investors. It is the private investment department of the Ontario Teachers' Pension Plan, the largest single-profession pension plan in Canada. The Ontario Teachers' Pension Plan is an independent corporation responsible for investing the fund and administering the pensions of Ontario's 289,000 active and retired teachers. For more information visit www.otpp.com.
Director, Communications and Media Relations
Ontario Teachers' Pension Plan