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Enhanced Community Development Awarded $65 Million in New Markets Tax Credits
Globe Newswire 2-Oct-2024 4:15 PM
NEW YORK, Oct. 02, 2024 (GLOBE NEWSWIRE) -- P10, Inc. (NYSE:PX), a leading private markets solutions provider, today announced Enhanced Community Development, a part of P10 subsidiary Enhanced Capital Group LLC, was awarded a $65 million allocation from the New Markets Tax Credits (NMTC) program administered by the U.S. Treasury Department's Community Development Financial Institutions Fund. Under the program, the U.S. Treasury Department allocated a total of $5 billion to 104 Community Development Entities for the 2023 round.
"Enhanced Community Development is continuing to meet the needs of underserved communities around the country," said Luke Sarsfield, P10 Chairman and Chief Executive Officer. "Enhanced Capital's team brings a mission-driven focus to their investments, providing financing solutions that generate positive social outcomes in the lower-middle market. This federal NMTC allocation further strengthens their ability to create opportunities that have a lasting impact."
Enhanced Community Development has deployed $750 million in federal and state NMTC investments across the United States, supporting over 130 projects and fostering economic activity in low-income communities. Previous NMTC-funded projects include manufacturing companies, healthcare facilities, educational institutions, and community centers that serve the needs of economically disadvantaged populations.
"We are incredibly honored to receive this $65 million allocation, which enables us to significantly increase the impact on the communities that need it most," said Richard Montgomery, Managing Partner at Enhanced Capital. "The New Markets Tax Credit program is a powerful tool for creating meaningful change in areas often overlooked by many investors and traditional sources of capital."
The NMTC program, created by Congress in 2000, is designed to drive economic revitalization in underserved communities by attracting private capital investment through federal tax credit incentives. The program has facilitated the deployment of more than $63 billion in low-income communities across the U.S., resulting in the creation or retention of over 894,000 jobs and the construction or rehabilitation of nearly 260 million square feet of commercial real estate.1
For more information on Enhanced Community Development and its work in revitalizing underserved communities, please visit www.enhancedcapital.com.
About P10 P10 is a leading multi-asset class private markets solutions provider in the alternative asset management industry. P10's mission is to provide its investors differentiated access to a broad set of investment solutions that address their diverse investment needs within private markets. As of June 30, 2024, P10 has a global investor base of more than 3,700 investors across 50 states, 60 countries, and six continents, which includes some of the world's largest pension funds, endowments, foundations, corporate pensions, and financial institutions. Visit www.p10alts.com.
About Enhanced Community Development: Enhanced Community Development (ECD), a subsidiary of Enhanced Capital, is a federally designated Community Development Entity focused on the financing needs of businesses and developments located in or serving low-income communities. ECD proudly participates in the federal New Markets Tax Credit (NMTC) Program and a variety of state NMTC Programs. ECD is an Equal Opportunity Provider. Since 2006, ECD has deployed $750 million in federal and state NMTC allocation to job-creating businesses and organizations in economically distressed communities.
About Enhanced Capital: Enhanced Capital Group, LLC is a leading impact investment firm with over 24 years of experience investing in Climate Finance, Impact Real Estate, and Small Business Lending. From inception in 1999 through June 30th, 2024, inclusive of proprietary assets and assets managed by affiliates, Enhanced Capital has raised a total of $6.0 billion. Of the total assets under management, impact assets represent $3.8 billion invested in over 950 projects and businesses throughout 40 states, Washington DC, and Puerto Rico and does not include investments made by non-impact affiliates.
Forward-Looking Statements Some of the statements in this release may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Words such as "will," "expect," "believe," "estimate," "continue," "anticipate," "intend," "plan" and similar expressions are intended to identify these forward-looking statements. Forward-looking statements discuss management's current expectations and projections relating to our financial position, results of operations, plans, objectives, future performance, and business. The inclusion of any forward-looking information in this release should not be regarded as a representation that the future plans, estimates, or expectations contemplated will be achieved. Forward-looking statements reflect management's current plans, estimates, and expectations, and are inherently uncertain. All forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors that may cause actual results to be materially different; global and domestic market and business conditions; successful execution of business and growth strategies and regulatory factors relevant to our business; changes in our tax status; our ability to maintain our fee structure; our ability to attract and retain key employees; our ability to manage our obligations under our debt agreements; our ability to make acquisitions and successfully integrate the businesses we acquire; assumptions relating to our operations, financial results, financial condition, business prospects and growth strategy; and our ability to manage the effects of events outside of our control. The foregoing list of factors is not exhaustive. For more information regarding these risks and uncertainties as well as additional risks that we face, you should refer to the "Risk Factors" included in our annual report on Form 10-K for the year ended December 31, 2023, filed with the U.S. Securities and Exchange Commission ("SEC") on March 13, 2024, and in our subsequent reports filed from time to time with the SEC. The forward-looking statements included in this release are made only as of the date hereof. We undertake no obligation to update or revise any forward-looking statement as a result of new information or future events, except as otherwise required by law.
Ownership Limitations P10's Certificate of Incorporation contains certain provisions for the protection of tax benefits relating to P10's net operating losses. Such provisions generally void transfers of shares that would result in the creation of a new 4.99% shareholder or result in an existing 4.99% shareholder acquiring additional shares of P10, and it expires at the third anniversary of the IPO, October 2024.
Disclaimer: Enhanced Capital Group, LLC, and its affiliates, is an Equal Opportunity Provider. The information presented is for discussion purposes only and is neither an offer to sell nor a solicitation of any offer to buy any securities, investment product, or investment advisory services. This is not an offering or the solicitation of an offer to purchase an interest in a fund.
1 "The U.S. Department of the Treasury Announces $5 Billion in New Markets Tax Credits," Department of the Treasury, September 19, 2024. https://www.cdfifund.gov/news/603
