Puerto Rican investment pushes Sygnus Credit to record returns

SYGNUS Credit Investments Limited (SCI) reported a 123 per cent increase in net profit to US$9.55 million, underpinned by its Puerto Rican investment which has begun to pay dividends to the private credit company.

SCI branched out of its traditional Caribbean basin in February 2022 when it acquired the majority 93.66 per cent interest in Puerto Rican financing entity Acrecent Financial Corporation for US$21.22 million. This opened a new avenue for SCI to grow its private credit portfolio in a territory where economic depth exceeded the company’s core English- and Dutch-speaking Caribbean markets.

SCI restructured the company by having a separate fund manager oversee Acrecent’s operations and converting it to a limited liability company in June 2023. Acrecent was also structured to be held by Sygnus Credit Investments Puerto Rico Fund LLC, a private credit fund. Thus, SCI doesn’t consolidate Acrecent in its financials, but accounts for the fair value changes via its accounting policy.