Its been a busy year for interval fund sponsors. So far in the first half of 2022, 8 new interval funds have launched. Four of these funds are pursuing a credit strategy, two are in Private Equity or Venture Capital, and two are in real estate
Here is a list of the new funds:
|Fund Name||Effective Date||Investment Strategy|
|Cantor Fitzgerald Sustainable Infrastructure Fund||6/30/2022||Real Estate|
|First Trust Real Assets Fund||6/29/2022||PE/Venture Capital|
|Bluerock High Income Institutional Credit Fund||6/21/2022||Credit|
|Pimco California Flexible Municipal Income Fund||6/21/2022||Credit|
|Opportunistic Credit Interval Fund||6/17/2022||Credit|
|Sweater Cashmere Fund||4/11/2022||PE/Venture Capital|
|Fundrise Income Real Estate Fund, LLC||2/3/2022||Real Estate|
|Lind Capital Partners Municipal Credit Income Fund||2/2/2022||Credit|
2022Q2 was an especially busy quarter. The following chart shows the number of new interval fund launches in each quarter since 2020.
New Interval Fund Strategies
Each of the Credit funds has a unique strategy. Pimco California Flexible Municipal Income Fund and Lind Capital Partners Municipal Credit Income Fund both invest in municipal debt. As the name implies, Pimco’s new interval fund will invest in municipal bonds issued by or on behalf od the State of California and its political subdivisions, financing authorities, and agencies. The Lind Capital Partners interval fund will focus on high yield municipal bonds from smaller issuers.
Bluerock High Income Institutional Credit Fund will focus on senior secured loans. Bluerock’s new interval fund may purchase senior secured loans directly in the primary or secondary market. It may also purchase senior, junior or equity tranches of CLOs.
Mount Logan Management, LLC is the adviser to the Opportunistic Credit Interval Fund. This fund seeks to opportunistically allocate capital to investments that it expects will perform well through the full credit cycle.
Private Equity and Venture Capital
The First Trust Real Assets Fund will invest in private funds that invest in real assets including real estate, infrastructure, natural resources, and precious metals.
The Sweater Cashmere Fund will operate in the equity securities of private growth companies and venture capital funds.
The Fundrise Income Real Estate Fund came to market as a result of the merger of six Fundrise sponsored private REITs. Fundrise’s new real estate interval fund will continue to raise capital and pursue its strategy of investing in a broad portfolio of commercial and residential real estate.
The SEC declared the prospectus for Cantor Fitzgerald Sustainable Infrastructure Fund effective on the last day of 2022Q2. Cantor Fitzgerald’s new interval fund will invest in a portfolio of private institutional infrastructure investment funds, as well as public infrastructure securities.
New Interval Fund Share Classes
Many interval funds offer multiple share classes in order to offer the fund to different distribution channels. The following table summarizes the different share classes offered by each of the newly launched interval funds.
|Fund||Share Class||Ticker||Maximum Total Sales Load||Distribution Fee||Shareholder servicing|
|Lind Capital Partners Municipal Credit Income Fund||Shares of Beneficial Interest||LCMPX||None||None||None|
|Opportunistic Credit Interval Fund||I||SOFIX||None||None||None|
|PIMCO California Flexible Municipal Income Fund||Institutional||CAFLX||None||None||None|
|PIMCO California Flexible Municipal Income Fund||A-1||CAFMX||None||0.50%||Included in Distribution Fee|
|PIMCO California Flexible Municipal Income Fund||A-2||CAFNX||3.00%||0.50%||Included in Distribution Fee|
|PIMCO California Flexible Municipal Income Fund||A-3||CAFOX||None||0.75%||Included in Distribution Fee|
|PIMCO California Flexible Municipal Income Fund||A-4||CAFPX||3.00%||0.75%||Included in Distribution Fee|
|Cantor Fitzgerald Sustainable Infrastructure Fund||A||CAFIX||5.75%||None||0.25%|
|Bluerock High Income Institutional Credit Fund||A||IIMAX||5.75%||None||0.25%|
|Bluerock High Income Institutional Credit Fund||C||IIMCX||None||0.75%||0.25%|
|Bluerock High Income Institutional Credit Fund||F||IIMFX||None||None||None|
|Bluerock High Income Institutional Credit Fund||I||IIMFX||None||None||None|
|First Trust Real Assets Fund||A||FTRDX||5.75%||1.00%||Included in Distribution Fee|
|First Trust Real Assets Fund||I||FTREX||None||1.00%||Included in Distribution Fee|
|Fundrise Income Real Estate Fund, LLC||Common Shares||N/A||None||None||None|
|Sweater Cashmere Fund||Shares||SWTRX||None||None||None|
New Interval Fund Management Fees
Each strategy also has different management fees. The following table summarizes the different management fees for each new fund.
|Fund||Category||Advisor||Sub-Advisor||Annual Management Fee||Incentive Fee|
|Lind Capital Partners Municipal Credit Income Fund||Credit||Lind Capital Partners||None||1.00% of net assets||None|
|Opportunistic Credit Interval Fund||Credit||Mount Logan Management, LLC||None||1.25% of gross assets||15% of net investment income over 6.0% hurdle with catchup|
|PIMCO California Flexible Municipal Income Fund||Credit||Pacific Investment Management Company LLC||None||0.75% of managed assets||None|
|Cantor Fitzgerald Sustainable Infrastructure Fund||Real Estate||Cantor Fitzgerald Investment Advisors, L.P.||Capital Innovations, LLC||1.50% of net assets||None|
|Bluerock High Income Institutional Credit Fund||Credit||Bluerock Credit Fund Advisor, LLC||WhiteStar Asset Management LLC||1.75% of net assets||20% of pre incentive fee net investment income over an 8.0% hurdle with catch up|
|First Trust Real Assets Fund||PE/Venture Capital||First Trust Capital Management L.P.||Angel Oak Capital Advisors, LLC||1.35% of net assets||None|
|Fundrise Income Real Estate Fund, LLC||Real Estate||Fundrise Advisors, LLC||None||0.85% of net assets||None|
|Sweater Cashmere Fund||PE/Venture Capital||Sweater Industries LLC||None||2.50% of net assets||None|