AMP Solar Group: Investment Sold

When we last wrote about AMP Solar Group on January 12, 2021, we were full of questions. We’d heard that the Carlyle Group had made an investment in the company, but we didn’t know what were the implications for Apollo Investment (AINV), which has a very long standing equity investment with a cost of $10.0mn and a value through September 30, 2020 of $8.570mn.

We don’t know if Carlyle’s involvement validates the multi-year investment in AMP Solar and we will see either a sale of the BDC’s position to them or an increase in the business valuation. ..We just don’t know but hope to learn more from AINV when IVQ 2020 results are published and discussed in February 2021“.

Now AINV has reported those results we know a lot more, even if not much color was offered. Apparently, the BDC received $14.0mn for its position, resulting in ” a net gain of approximately $5.6 million during the quarter“.

Six years after getting first involved with AMP Solar this is a positive outcome for AINV which has been long trying to sell-off its “non core” alternative energy investments. At one point this investment had been written down on an unrealized basis by (91%) so the gain realized must feel like vindication to the BDC.

The BDC Credit Reporter had rated the investment CCR 3, as its value had been appreciating in recent quarters, but the rating had been CCR 4 in the past. We are re-rating to CCR 6 as the BDC no longer has any exposure.