Teachers’ Private Capital, a unit of the Ontario Teachers’ Pension Plan (Teachers’) has made a $125 million equity commitment to NXT Capital, LLC, a privately held middle-market commercial finance company based in Chicago. Teachers’ investment is part of $318 million in additional equity commitments NXT has secured, bringing the company’s total equity capitalization to approximately $850 million.
In addition to Teachers’, NXT’s new investors include Credit Suisse’s Customized Fund Investment Group, Oak Hill Investment Management, Teachers’ Retirement System of the State of Illinois, a subsidiary of PartnerRE Ltd. and four other institutional investors.
Led by former principals of Merrill Lynch Capital, NXT provides structured financing solutions to middle-market and emerging growth companies through its corporate finance, real estate finance and venture finance groups. The company targets senior financing opportunities of up to $150 million with a hold size up to $30 million.
Since its launch in 2010, NXT has provided more than $1.5 billion in financing commitments spread over 70 transactions.
Jane Rowe, senior vice-president and head of Teachers’ Private Capital, 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.”