RealPort's "Partial Exit" instrument enables asset holders to divest minority positions in operating renewable energy assets.
Profit Participation Notes
Partial Exits are executed through the signing of Profit Participation Notes (PPNs), which are a form of mezzanine capital or preferred equity, linked to the economic outcomes of the assets. By working with the asset holder to adapt to the existing ownership structure of the asset, RealPort allows investors to sit behind senior debt and pari passu alongside other investors in the capital structure. From a tax and accounting perspective, the notes can be structured as equity, but without voting rights, or as debt, but with a variable payment tied directly to the performance of the asset instead of fixed interest payments.