Sygnus Credit spends US$21m on Puerto Rico-based private credit firm | Loop Jamaica

The content originally appeared on: Jamaica News | Loop News

Sygnus Credit Investments spent US$21 million to acquire a financial entity in Puerto Rico which will shift the geographic weighting from Jamaica toward the Spanish-speaking territory.

On February 28, 2022, the company completed the acquisition of the outstanding shares in Acrecent Financial Corp through its subsidiary Sygnus Credit Puerto Rico Inc.

“The purchase consideration on the date of acquisition comprised of an initial payment of US$21 million and a contingent consideration of US$1.98 million,” said Sygnus in the financials released in June.

The contingent consideration is dependent on the achievement of certain financial targets and payable upon target attainment.

The acquisition resulted in 40 per cent of the group’s portfolio in Puerto Rico, 22.7 per cent in Jamaica, the US at 7.5 per cent and 7.3 per cent for St Lucia. Other territories have significantly less portfolio exposure.

“Portfolio companies from Puerto Rico now account for the highest allocation of SCI’s portfolio,” said the company.

The fair value of its investment portfolio of companies stands at US$124.7 million up to March 2022 from US$73.6 million a year ago.

From a trading perspective, Sygnus made US$370,700 over three months to March 2022 compared to US$1.0 million a year before.

SCI has, in the meantime, embarked on its next phase by reimagining its growth path by expanding investment origination to other English, Dutch and Spanish speaking Caribbean territories and building strategic relationships with international financial partners and global institutional asset managers.

“The culmination of these factors will create the launching pad to scale the business substantially, thus enhancing shareholder value through increased EPS, dividends and higher ROE,” stated Jason Morris, Co-Founder, Executive Vice President and Chief Investment Officer of Sygnus Group.

In addition, SCI is in the process of exploring the implementation of a share buy back or equivalent programme designed to enhance shareholder value, he disclosed.