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.
Versus Capital Real Assets Interval Fund Strategy
Versus Capital Real Assets Fund LLC will focus on institutional private infrastructure, agriculture and timber funds and public real asset securities. Infrastructure assets provide essential facilities and services supporting economic productivity. For example, electricity transmission and distribution facilities, gas distribution systems, water distribution and waste water collection and processing facilities, transportation assets and social infrastructure (including schools, hospitals, prisons and courthouses). Within the timberland category, the fund will target both tree farms and natural forests. Investment objectives of the Fund are current income and long-term capital appreciation with low correlation to the broader public equity and fixed income markets.
The fund has broad discretion in how it allocates the portfolio, but it will target the following allocation:
|Private Infrastructure||10 – 15%|
|Private Timberland||20 – 30%|
|Private Agriculture/Farmland||20 – 30%|
|Private Real Asset Debt||5 – 15%|
|Public Real Asset Securities||20 – 40%|
Also notable, the fund will use a REIT subsidiary to certain timber and agriculture investments.