OTPP, Illinois TRS invest in NXT Capital

CANADA/US - Teachers' Private Capital, a unit of the C$107.5bn ($106.4bn) Ontario Teachers' Pension Plan, and the $37.3bn Teachers' Retirement System of the State of Illinois have made equity investments to finance company NXT Capital.

Teachers' Private Capital invested $125m from its C$12bn private equity portfolio, NXT said.

The firm said NXT has raised $318m in its latest round of equity commitments from both existing and new investors, including Illinois TRS, though it did not provide details of the pension fund's investment. The new round of fund raising brings its total equity value to $850m, NXT said.

New investors also include Credit Suisse's Customized Fund Investment Group, Oak Hill Investment Management, a subsidiary of PartnerRE and four other institutional investors.

Teachers' Private Capital head and senior vice president Jane Rowe said: "We have built a strong working relationship with NXT's management team. Seeing firsthand the successful development of the business over the past year, we are confident that our increased equity commitment to the company will be well rewarded."

NXT's chairman and chief executive officer Robert Radway added: "We are very pleased that new and existing investors have validated NXT Capital's successful launch and future prospects with additional equity backing. With this latest round of equity commitments, NXT Capital is well-positioned to further enhance its current market position and to diversify into new areas where we have substantial expertise."

The US based firm provides financing solutions to middle-market and emerging growth companies and targets deals of up to $150m with a hold size up to $30m.