The boards of Triloma EIG Energy Income Fund and Triloma EIG Energy Income Fund – Term I, two unlisted investment companies that focus on privately originated energy company and project debt, have approved plans of liquidation for each fund, according to a prospectus supplement filed with the Securities and Exchange Commission.
The DI Wire reported earlier this month that the Triloma EIG funds suspended their offerings “due to market conditions.”
To prepare for the liquidation, the boards agreed to terminate the funds’ respective distribution reinvestment plans and all previously approved monthly distributions. March distributions will be paid in cash.
The funds also signed agreements to sell all of their originated investments to a third-party and will use a portion of the proceeds to pay all of their outstanding debts, claims and obligations. Shareholders are expected to receive an initial cash liquidating distribution on May 15, 2018.
Should any assets remain following these payments and other final expenses, a second liquidating distribution above a threshold of $100 per shareholder will be made on or before June 30, 2018. Distribution checks will be mailed to shareholders’ last address on record.
Triloma EIG Energy Income Fund and Triloma EIG Energy Income Fund I have struggled to raise significant equity in recent months, with a combined $6.6 million raised since the beginning of 2018. The funds raised $24.6 million and $20.0 million since their July 2015 launch, respectively.
According to Summit Investment Research, Triloma EIG Energy Income Fund had a total return of 10.9 percent in 2016 and 12.5 percent in 2017, while Triloma EIG Energy Income Fund I had a total return of 11.3 percent in 2016 and 11.6 percent in 2017.
Triloma EIG Energy Income Fund and Triloma EIG Energy Income Fund – Term I are managed by Triloma Energy Advisors and EIG Credit Management Company, wholly owned subsidiaries of Triloma Financial Group and EIG Global Energy Partners, respectively.