Broadstone Real Estate registered a new interval fund on October 13, targeting a $1 billion capital raise. According to the draft registration statement, Broadstone Real Estate Access Fund intends to invest in a portfolio of institutional quality real estate and real estate-related investments. The portfolio will include the following asset classes: (i) Direct Real Estate Investments, (ii) Private CRE Investment Funds, (iii) Publicly Traded CRE Securities, and (iv) CRE Debt Investments. The minimum initial investment is $2,500 for Class W shares and $1,000,000 for Class I shares.
The Versus Capital’s new real assets interval fund was declared effective by the SEC on August 17, 2017. Versus Capital Real Assets Fund, LLC is seeking to raise $450 million in a continuous offering. Minimum initial investment is $10 million(RIAs can aggregate accounts to get to the minimum). The fund will have one share class. and the management fee will be 1.50% of net assets.
Versus Capital is familiar with the interval fund space. It also manages Versus Capital Multi-Manager Real Estate Income Fund LLC, an investment company with $1.7 billion in assets. See Active Interval Funds for more information on this fund.
On July 26, 2017, Pathway Energy Infrastructure’s board of directors approved the Company’s plan to convert to an interval fund. The change of this fundamental policy will be submitted to shareholders for a vote in a forthcoming proxy. The Company is also making adjustements to its investment strategy to focus on broader infrastructure opportunities. The new Company name will be “Pathway Capital Opportunity Fund.” Shareholders will need to vote on the change in an investment strategy as well. Details on the new structure and strategy are included in a draft registration statement
TweetBlackstone/GSO registered a new interval fund on June 30. The Blackstone/GSO Floating Rate Enhanced Income Fund intends to follow a familiar credit strategy, focused
TweetThe SEC declared the registration statement effective for The City National Rochdale Select Strategies Fund（CNRLX ) on June 22, 2017. CNRLX is seeking to
The Relative Value Fund, an interval fund seeking to raise $100 million went effective on May 1, 2017
The Fund will use a multi-manager approach, investing variety of alternative investment strategies, in pursuit of an absolute return objective.
According to the registration statement:
With a whole slew of credit interval funds hitting the market this year, its time to compare the basic structures and fee arrangements. The chart below consists of funds that have been declared effective within the past year, all from familiar sponsors. Within the broader category of credit, there are a lot of substrategies, but its no coincidence, that all of the Sponsors for these funds have marketed BDCs to retail investors in the past.
|Interval Funds- Credit|
|Fund||FS Energy Total Return Fund- A||FS Energy Total Return Fund -I||Griffin Institutional Access Credit Fund- A||Griffin Institutional Access Credit Fund- C||Griffin Institutional Access Credit Fund- I||Sierra Total Return Fund||Cion Ares Diversified Credit Fund|
|Advisor||FS Energy Advisor LLC||FS Energy Advisor LLC||Griffin Capital Credit Advisor, LLC||Griffin Capital Credit Advisor, LLC||Griffin Capital Credit Advisor, LLC||STRF Advisors, LLC (Medley Management)||Cion Ares Management, LLC|
|Sub-Advisor||Magnetar Asset Management LLC||Magnetar Asset Management LLC||BCSF Advisors, LP||BCSF Advisors, LP||BCSF Advisors, LP||NA||Ares Capital|
|Minimum Initial Investment||$2,500||$1,000,000||$2,500||$2,500||$1,000,000||$2,500||$2,500|
|Strategy||Equity and Debt securities of natural resource companies.||Equity and Debt securities of natural resource companies.||High yield debt securities||High yield debt securities||High yield debt securities||Debt and Equity||Diversified Credit|
|Targeted Capital Raise||Up to $2 billion||Up to $2 billion||Up to $1 billion||Up to $1 billion||Up to $1 billion||Up to $1 billion||Up to $1 billion|
|Redemption Program||5% per quarter||5% per quarter||5% per quarter||5% per quarter||5% per quarter||5% per quarter||5% per quarter|
|Maximum Total Sales Load||5.75%||None||5.75%||None||None||2.00%||5.75%|
|Dealer Manager Fee||0.75%||None||0.75%||None||None||1.25%||0.75%|
|Distribution Fee||None||None||None||0.75%||None||0.75% of average daily net assets until cap is reached||None|
|Shareholder servicing expenses||0.25% average daily net assets||None||0.25% average daily net assets||0.25% average daily net assets||None||0.25% of average daily net assets||0.25% of average daily net assets|
|Management Fee||1.75% of total assets||1.75% of total assets||1.85% of net assets||1.85% of net assets||1.85% of net assets||1.5% of total assets||1.5% of total assets|
|Contingent Deferred Sales Charge||None||None||None||1.0% during first year||None||1.0% during first year||1.0% during first 18 months|
|Incentive Fee||None||None||None||None||None||15.0% of net investment income over 6.0% hurdle, with catch up provision||20% of net investment income over 6% hurdle, with catch up provision|
Non-traded REIT and BDC sponsors are entering the interval fund space en masse. This was a key trend in 2016 and it is continuing in 2017. Here is a partial list of Non-traded REIT and BDC Sponsors with interval funds in various stages of launch.
TweetUnion Square Capital Partners Registered USQ Core Real Estate Fund, a new interval fund. USQ Core Real Estate Interval Fund According to the Prospectus:
Four interval funds went effective on the first quarter of 2017:
|Fund Name||Effective Date||Investment Strategy|
|Griffin Institutional Access Global Credit Fund||3/30/2017||Credit|
|FS ENERGY TOTAL RETURN FUND||3/8/2017||Credit& Equity|
|PIMCO Flexible Credit Income Fund||2/9/2017||Credit|
|Nexpoint Opportunistic Credit Fund||1/13/2017||Credit|
For a complete listing of new fund launches, see Public Listing Update.
Griffin Capital and FS Investments will both be presenting on different panels at the ADISA 2017 Spring Conference. Topics include “Between Theory & Operations: A Practical Discussion of the Formation and Operation of Interval Funds” and “Running the Gauntlet: Interval Funds and the Due Diligence Process”. Highland Capital, an affiliate of interval fund sponsor Nexpoint Capital will also be at the conference.