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NXT Capital Inks $318M in Fresh Capital

NXT Capital, a Chicago-based commercial finance company focused on the middle-market, has raised $318 million in equity commitments from investors including Teachers’ Private Capital, a unit of the Ontario Teachers’ Pension Plan. NXT Capital’s new investors include Credit Suisse’s Customized Fund Investment Group, Oak Hill Investment Management, and Teachers’ Retirement System of the State of Illinois.

PRESS RELEASE
NXT Capital, LLC, a privately held middle‐market commercial finance company based in Chicago (www.nxtcapital.com), announced today that it has raised $318 million in additional equity commitments, bringing its total equity capitalization to approximately $850 million. Commitments were received from both existing and new investors, including a $125 million follow on investment by Teachers’ Private Capital, a unit of the Ontario Teachers’ Pension Plan.

“Stone Point Capital is proud to have founded NXT Capital with Robert Radway and his management team. We welcome our new equity partners in the company and look forward to supporting NXT Capital’s further growth.”

NXT Capital’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.

NXT Capital is led by former principals of Merrill Lynch Capital and was formed in 2010 by Stone Point Capital and the founding management team. NXT provides structured financing solutions to middle-market and emerging growth companies through its Corporate Finance, Real Estate Finance and Venture Finance groups, originating transactions directly on a national basis. The company targets senior financing opportunities of up to $150 million with a hold size up to $30 million. Since its launch, NXT has provided over $1.5 billion in financing commitments spread over 70 discrete transactions and has become one of the most active participants in its target markets.

“We are very pleased that new and existing investors have validated NXT Capital’s successful launch and future prospects with additional equity backing,” said Robert Radway, NXT’s Chairman and CEO. “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.”

“NXT Capital continues to make impressive progress with the development of its leading middle-market commercial finance franchise,” added Stone Point Capital’s CEO, Charles A. Davis. “Stone Point Capital is proud to have founded NXT Capital with Robert Radway and his management team. We welcome our new equity partners in the company and look forward to supporting NXT Capital’s further growth.”

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.”

Stone Point Capital LLC is a global private equity firm based in Greenwich, Connecticut, that has a 25-year record of making successful investments in the financial services industry. Stone Point Capital serves as the manager of the Trident Funds, which have raised more than $10 billion in committed capital to make investments in lending, banking, asset management and other financial services companies. For further information about Stone Point Capital, visit www.stonepoint.com.

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 further information about Ontario Teachers’ Pension Plan, visit www.otpp.com.

NXT Capital provides structured financing solutions to middle-market and emerging growth companies, and real estate investors through its Corporate Finance, Real Estate Finance and Venture Finance groups. Based in Chicago with offices in New York, Atlanta, Boston, Dallas, Newport Beach and Silicon Valley, NXT Capital targets senior financing opportunities of up to $150 million with a hold size up to $30 million.