Jeff Ubben’s fund invests an additional $ 40 million in wood pellet business
Jeff Ubben’s Inclusive Capital Partners recently increased its investment in a master limited partnership that processes wood fiber into pellets, a low-carbon alternative to charcoal.
In-Cap, as Ubben’s ESG fund is known, purchased 879 120 additional units Enviva Partners (ticker: EVA) in a public offer on June 8, remunerating the offering price of $ 45.50 each for a total of $ 40 million. Enviva will use the proceeds of the offering to help finance acquisitions of a wood pellet production plant in Lucedale, Mississippi, a deepwater marine terminal in Pascagoula, Mississippi, and three long-term contracts with Japanese counterparties. .
According to its website, “Enviva sells a large part of its wood pellets under long-term contracts with creditworthy customers in the UK and Europe. “
As of June 10, In-Cap held 5.7 million common units of Enviva, a 12.9% stake, compared to 4.8 million common units, a 12.2% stake, until August 4, 2020; the relatively smaller change in percentage participation reflects more units outstanding after the offer.
In-Cap did not respond to a request for comment.
Ubben, the founder of ValueAct Capital, sits on the board of Enviva. He surprised Wall Street last June when he left ValueAct to launch In-Cap.
Enviva units have gained 6.8% so far in 2021, below the 10.9% increase in
S&P 500 Index.
Raymond James analyst Pavel Molchanov values Enviva’s shares at Strong Buy and sees them rise to $ 57.
Inside Scoop is a regular feature of Barron covering the stock transactions of corporate executives and board members, as well as major shareholders, politicians and other personalities. Due to their insider status, these investors are required to disclose stock transactions to the Securities and Exchange Commission or other regulatory bodies.