Interval Funds Monthly- February 2024
This month three new interval funds filed registration statements. Aether Infrastructure & Natural Resources Fund filed for a new public offering. Gemorp Commodities Alternative Products Fund and AB Carval Credit Opportunities filed registration statements for privately offered interval funds. Additionally, there three new tender offer funds, and one private NT BDC filed registered with the SEC.
Aether Infrastructure & Natural Resources Fund
Aether Infrastructure & Natural Resources Income Fund registered a new interval fund on February 28. This fund will obtain exposure to infrastructure and natural resources investments through secondary purchases of private funds, direct investments in private funds, direct investments in private companies, purchasing publicly traded securities, and holding individual commodities. It may also set up SPVs and joint ventures for its infrastructure or natural resources investments.
Aether’s new interval fund will have two share classes : Class F and Class I. Neither share class will have a sales charge. However, the share classes differ in terms of minimum initial investment, and servicing fee. Class F shares have a minimum initial investment of $10 million, while Class I Shares have a minimum initial investment of $1 million. Class F shares will have no distribution or servicing fee. In contrast, Class I Shares will have a servicing fee, although the exact amount was not yet specified in the draft prospectus.
Aether Investment Partners, LLC is the investment adviser for this new interval fund. According to their website, Aether is a specialist investment management firm formed in 2008 to focus on private investments in real assets. Aether has $1.6 billion in committed capital under management.
Gemcorp Commodities Alternative Products Fund
Gemcorp Commodities Alternative Products Fund filed a draft registration statement for a new privately offered interval fund on February 27. The fund expects to allocate across different strategies including Commodity Linked Credit (20-60%), commodity linked equity (10%-20%), supply chain financing (20%-40%), and Physical Commodities (0-25%).
Gemcorp’s draft private placement memorandum indicates that the fund will have two share classes: Class I and Class U. The minimum initial investment will be $1 million for Class I shares and $2,500 for Class U shares. Class I shares will not have any distribution or servicing fee. In contrast, Class U shares will have a 0.75% distribution fee. Additionally, the fund will charge a base management fee of 1.5% of net assets and an incentive fee of 15% over a 5% hurdle rate.
Gemcorp Group was founded in 2014 and currently manages over $1.1 billion in assets. It has over 150 employees across its investment management and commodities businesses.
AB Carval Credit Opportunities
AB Carval Credit Opportunities filed a draft registration statement for a new privately offered interval fund on February 23. The fund will invest in credit assets including corporate securities, structured credit, loan portfolios and hard assets. It will position the fund across sectors and target yields over various maturities without a specific duration target and without liquidity limitations.
The draft PPM indicates that AB Carval’s new interval fund will have one share class. It will not charge a sales load, nor will it charge distribution or servicing fees. The annual management fee is 1.50% of net assets.
AB Carval has approximately $16 billion under management, according to its website. Cargill founded CarVal in 1987. In 2006, it became an independent subsidiary of Cargill. In 2019, it became an employee owned firm. Then in 2022, AllianceBernstein bought Carval. AllianceBernstein has several other funds in the retail alternative space including AB Private Credit Investors Corp, a Private BDC, and AB Multi-Manager Alternative Fund, a tender offer fund.
Other Alternative Fund Registrations
Partners Group filed registration statements for two new privately offered tender offer funds. The first, Partners Group Growth LLC will target private market enterprises with above average growth potential. The second, Partners Group Next Generation Infrastructure LLC will target securities issued by infrastructure businesses and funds.
Central Park Group also added to its long running, and highly successful “Vintage Access” series of tender offer funds with the registration of CPG Vintage Access Fund VII, LLC. As with other CPG funds, it will invest in private equity funds from various sponsors that are represented on the Morgan Stanley Smith Barney LLC platform.
KKR FS Income Trust Select is a feeder fund for KKR FS Income Trust, a Private NT BDC that was originally launched in 2023. This new feeder fund filed a new Form N-54A indicating its intention to be treated as a BDC on February 20.
Interval Fund and Alternative Investments Industry Links
Infrastructure Interval Funds: What You Need to Know Interval Fund Tracker
Which Alternative Investments RIAs Favor Right Now WealthManagement.com
Five Questions for: Ultimus Fund Solutions Managing Director Nickolaus Darsch The DIWire
Educating Clients about New Types of Investments They May Already Own RIAIntel
Q&A: Looming Regulation Could Impact the Use of Alternative Investments WealthManagement.com
Other Resources
Complete list of all active interval funds
Complete list of all active tender offer funds
Non-traded REITs
Non-traded BDCs
Liquidity solutions for unlisted securities