TerraForm Global, Inc. (GLBL, Financial) is a yield-oriented growth company known as a “yieldco” that owns a portfolio of long-term contracted renewable energy assets in emerging markets. Parent company SunEdison has a deep pipeline of assets that we expect to drive substantial growth. We invested in TerraForm Global in advance of its expected IPO in July of this year at a 5% discount to the IPO price. We took a roughly 7.6% illiquidity discount due to the fact that we won’t trade the stock for 180 days after the IPO. Once the lock-up ends, the illiquidity discount will go away.
From Baron Funds' second quarter 2015 commentary.
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