Ken Griffin‘s (pictured) Citadel Investment Group has acquired about 1.09 million shares of 8Point3 Energy Partners LP (NASDAQ:CAFD). The holding represents about 5.4% of the $400 million utilities company that launched its IPO last week. Another company that recently launched its IPO and already has a significant hedge fund backer is Nivalis Therapeutics Inc (NASDAQ:NVLS). James E. Flynn‘s Deerfield Management disclosed owning about 3.73 million shares of the $219 million healthcare company through the firm’s affiliated funds, according to a recent 13D form filed with the Securities and Exchange Commission. The holding represents about 25.52% of the company’s outstanding shares.
Ken Griffin launched his renowned managed futures fund, Citadel Investment Group in 1990 with $4.2 billion in assets under management. Currently the fund holds about $176 billion worth of regulatory assets under management and has 979 employees. The market value of its public equity portfolio stood at $104.72 billion at the end of March, with the finance sector amassing 25% of the fund’s holdings. On the other hand, Deerfield’s public portfolio value stood at $3.09 billion at the end of the first quarter, with the healthcare sector representing 94% of its holdings.
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With two sponsors, namely First Solar, Inc. (NASDAQ:FSLR) and SunPower Corporation (NASDAQ:SPWR), 8Point3 Energy Partners LP (NASDAQ:CAFD) is a yieldco offering a dividend yield of 4.27%. The proceeds from the offering will be used to pay for the assets from the sponsors that can generate a stable stream of earnings, as well as any acquisitions that may materialize in the future. The move to form this yieldco was intended to shield the investors from the manufacturing risks associated with the solar industry.
The portfolio of initial projects for 8Point3 Energy Partners LP (NASDAQ:CAFD) includes four which are in association with First Solar, Inc. (NASDAQ:FSLR), three of which 8Point3 has 49% ownership of, and five being contributed by SunPower Corporation (NASDAQ:SPWR), which are wholly owned by 8Point3. The total capacity of these projects stands at 432MW. The sponsors also have sound experience in the field and are leaders in the industry. According to 8Point3 Energy Partners LP (NASDAQ:CAFD)’s prospectus, the two sponsors supplied 39% of the 18.1 GW of solar power capacity installed in the United States between 2005 and 2014, and in the context of the OECD, their contribution stood at 11% during the same period.
The future for 8Point3 Energy Partners LP (NASDAQ:CAFD) looks promising given the increasing global demand for energy. According to The Energy Information Administration, the OECD’s energy requirement is expected to surge by 34% between 2014 and 2040. This requires a corresponding increase in capacity of about 600 GW.
Moving on to Deerfield’s healthcare pick, Nivalis Therapeutics Inc (NASDAQ:NVLS), the fund was a prominent stakeholder of the company even when it was private, as Deerfield oft invests in and helps small, private healthcare companies develop their products and wade through the regulatory hurdles of having them tested and approved. The $220 million emerging growth company is developing a novel class of therapies for treating cystic fibrosis, a genetic disorder that mostly affects the lungs, but can also harm the pancreas, liver, kidneys, and intestines. The disease has no known cure, and affects about 70,000 people worldwide.
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Since only palliative therapies for the treatment of cystic fibrosis currently exist, Nivalis Therapeutics Inc (NASDAQ:NVLS) has virtually no competitors in the market. However, the company’s lead product candidate, N9115 is currently nearing the end of Phase 1b clinical testing, and therefore there is a considerable amount of risk associated with the stock. However, Deerfield Management seems undeterred.
There are no other known shareholders of either company at this time among the funds in our database.
Disclosure: None
