DENVER, Oct. 4, 2019 — 361 Infrastructure Partners, a wholly owned subsidiary of 361 Capital, has filed a registration statement with the U.S. Securities and Exchange Commission on Form N-2 under the Investment Company Act of 1940 for the proposed offering of shares of a closed-end interval fund. 361 Social Infrastructure Fund aims to provide alternative income uncorrelated to public markets. The fund seeks to achieve its investment objective by investing at least 80% of its net assets, plus the amount of borrowings for investment purposes, in debt securities of special-purpose vehicles (“SPVs”) or other entities that will acquire, install, maintain and manage essential facility infrastructure assets. The SPVs from which the fund intends to purchase debt securities are designed to procure essential facility infrastructure assets to replace or upgrade facilities primarily in the social infrastructure sector. The social infrastructure sector includes entities that support social services including municipalities, educational and healthcare facilities, housing facilities, water and other public utilities, as well as other long-lived entities. Infrastructure assets that perform essential services includes heating, ventilation and air conditioning (HVAC) systems, roofing systems, windows, lighting, water pumps, boilers, and other related equipment.
361 Infrastructure Partners teamed up in 2018 with Sustainability Partners, a leading provider of infrastructure solutions, to develop products to finance solutions to infrastructure problems facing these entities. The two firms are working together with the common goal of helping address the more than $4.5 trillion deferred maintenance issue that exists today in the United States—of which nearly half, or $2.5 trillion, is concentrated in the social infrastructure sector.*
“Three quarters of U.S. school systems need immediate repair or replacement to their facility infrastructures, potentially costing more than $270 billion, or nearly $5,000 per student. Additionally, the majority of civic buildings in the United States are 25-50 years old,with the original decaying infrastructure still in place,” said Tom Florence, CEO of 361 Capital and 361 Infrastructure Partners.
A REGISTRATION STATEMENT RELATING TO THESE SECURITIES HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BUT IT IS NOT YET EFFECTIVE. THE INFORMATION IN THE FUND’S REGISTRATION STATEMENT IS NOT COMPLETE AND MAY BE CHANGED. THESE SECURITIES MAY NOT BE SOLD, NOR MAY OFFERS TO BUY BE ACCEPTED PRIOR TO THE TIME THE REGISTRATION STATEMENT IS EFFECTIVE.
THIS RELEASE IS NOT AN OFFER TO SELL THESE SECURITIES NOR IS IT SOLICITING AN OFFER TO BUY THESE SECURITIES, AND NO SECURITIES WILL BE SOLD IN ANY STATE WHERE THE OFFER OR SALE IS NOT PERMITTED. THE PROPOSED OFFER WILL BE MADE ONLY BY MEANS OF THE PROSPECTUS, WHEN AVAILABLE. INVESTORS SHOULD CONSIDER THE FUND’S INVESTMENT OBJECTIVE,RISKS, CHARGES AND EXPENSES CAREFULLY BEFORE INVESTING. THE PROSPECTUS CONTAINS THIS AND OTHER INFORMATION ABOUT THE FUND. READ THE FINAL PROSPECTUS, WHEN AVAILABLE,CAREFULLY BEFORE INVESTING. A COPY OF THE PROSPECTUS INCLUDED IN THE FILING MAY BE OBTAINED AT WWW.SEC.GOV.
AN INDICATION OF INTEREST IN RESPONSE TO THIS RELEASE WILL INVOLVE NO OBLIGATION OR COMMITMENT OF ANY KIND.
About 361 Infrastructure Partners
361 Infrastructure Partners is a leading sustainable infrastructure platform focused on solving the aging infrastructure problem impacting our communities and the environment. Through impact-driven investments that are measurable, our goal is to invest in social infrastructure projects that replace failing essential service assets with modernized, energy-efficient equipment—accelerating a future state of modern, sustainable infrastructure with a positive societal impact.
About 361 Capital
Founded in 2001, 361 Capital is a leading boutique asset manager with nearly two decades of experience investing in public and private offerings. The firm is majority employee-owned with strategic investments from Lovell Minnick Partners and Lighthouse Investment Partners.
About Sustainability Partners, LLC
Sustainability Partners is a usage-based infrastructure investment company serving the social infrastructure sector, which includes municipalities, universities, schools and hospitals. Founded in 2016 and with headquarters in Chandler, Arizona, the firm has become a leader in providing utilization-based infrastructure for upgrading power and water technology. The firm is majority employee-owned and has a senior leadership team with more than 30 years of infrastructure and engineering experience,and over a decade of expertise with impact investing.
Sustainability Partners employs a utility-like financing model that seeks to solve the deferred maintenance crisis by providing social infrastructure entities the ability to outsource the ownership of assets providing essential services. This unique approach allows these entities to upgrade their facilities with energy-efficient technologies while redirecting their capital to meet other mission-critical objectives for the communities they serve.
The fund is newly organized with no operating history. Investing in the fund involves a high degree of risk including the possible loss of principal. The fund’s strategy of investing primarily in debt securities of SPVs that finance essential facility infrastructure sectors means that the fund’s performance will be closely tied to the ability of municipalities, state and federal entities and agencies, universities, schools, airports, hospitals and other entities to perform under their applicable services agreements. The fund is non-diversified and emphasis on these investments which can include illiquid securities and the social infrastructure sector may present more risks than if the fund were broadly diversified over numerous industries and sectors.
The fund may add leverage to its portfolio which may create an opportunity for income and capital appreciation, but at the same time creates special risks that may adversely affect Shareholders.
The fund will not list its Common Shares for trading on any securities exchange and may only be suitable for long-term investors who can bear the risks associated with the limited liquidity of the Common Shares. In order to provide liquidity, the fund is structured as an “interval fund” and conducts periodic repurchase offers for a portion of its outstanding Common Shares. Since there is no secondary market for the fund’s shares, shareholders may not be able to sell all of their shares in repurchase offers conducted by the fund.
The fund will be distributed by Foreside Fund Services, LLC.
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