Interval Funds Monthly- July 2024

August 1, 2024

Eight new interval funds filed registration statements in July 2024. Seven of these new funds are credit focused, and one is venture capital.

Fund Name	Strategy	Registration Date
Russell Investments Strategic Credit Fund	Credit	7/30/2024
Prospect Enhanced Yield Fund	Credit	7/23/2024
Lord Abbett Municipal Opportunities Fund	Credit	7/22/2024
Callodine Specialty Income Fund	Credit	7/16/2024
Gladstone Alternative Income Fund	Credit	7/12/2024
Global X Venture Fund	PE/VC	7/5/2024
T. Rowe Price OHA Flexible Credit Income Fund	Credit	7/2/2024
MA Specialty Credit Income Fund	Credit	7/1/2024

Russell Investments Strategic Credit Fund

Russell Investments Strategic Credit Fund will invest in a range of lending activities including directly orignated loans, syndicated loans and credit strategies. Russell’s new credit interval fund charges a fee of 0.95% of net assets. This is the second interval fund that Russell Investments has registered in as many months. Last month they registered th New Economy Infrastrucutre Fund. Both of Russell’s interval funds are offering load free share classes. According to its website, Russell has $302.7 billion in total AUM and over $ 1 trillion in assets under advisement.

Prospect Enhanced Yield Fund

Prospect Enhanced Yield Fund will invest in non-mortgage related structured credit instruments including ABS, CLOs, and other securitized investments representing cash flows from various assets. Prospect Capital management also manages PSEC, a traded BDC, and PFloat a NT BDC,

Prospect Capital Corporation (PSEC), Priority Income Fund, Inc. , a tender offer fund , and Prospect Floating Rate and Alternative Income Fund, Inc, a NT BDC. Prospect Capital has total AUM of $12 billion, according to their website.

Lord Abbett Municipal Opportunities Fund

Lord Abbett Municipal Opportunities Fund will invest in municipal bonds that pay income that is exempt from federal tax. Lord Abbett is active in the interval fund space, with three funds including the Credit Opportuniites Fund, Floating Rate High Income Fund, and Special Situations Income Fund. They have approximately $199 billion in total AUM across different funds.

Callodine Specialty Income Fund

Callodine Specialty Income Fund will invest in a range of corporate, real estate, and alternative credit opportunities. According to its website, Callodine Group target attractively valued yield opportunities across the capital markets. They have approximately $20 billion in AUM.

Gladstone Alternative Income Fund

Gladstone Alternative Income Fund will invest in directly originated loans to lower and middle market private businesses n the US, broadly syndicated loans, and commercial real estate loans. Gladstone’s new interval fund will have four share classes. Class A shares will have a sales load of up to 5.75%. In contrast, Class I, C and U shares will not have any sales load.

Gladstone manages several retail focused investment vehicles, including two listed REITs and two listed BDCs. They have approximately $4.3 billion in AUM.

Global X Venture Fund

Global X Venture Fund seeks to identify category leading companies with unique products, consistent innovation, de-risked financials and proven management teams. They are stage agnostic, and will target a wide range of sectors including AI, B2B software,, Fintech, E-Commerce, Web3.0, etc. Global X sponsors over 90 ETFs and has over $50 billion in AUM. Global X Venture Fund is their first foray into the interval fund space.

PE/VC is a small portion of overall interval fund AUM, but it has been growing rapidly in recent years.

T. Rowe Price OHA Flexible Credit Income Fund

T. Rowe Price is entering the interval fund market with the launch of the OHA Flexible Credit Income Fund. T Rowe Price’s new interval fund will opportunistically allocate across a wide range of credit strategies.
Founded in 1937, T Rowe Price currently has $1.54 trillion in total AUM. T. Rowe Price has been focused on adding exposure to private credit, and alternative assets. In 2023 they launched a non-traded BDC. Their established retail distribution network should give it a major edge in raising capital for their NT BDC and their new interval fund.

MA Specialty Credit Income Fund

MA Specialty Credit Income Fund will invest in private loans, credit facilities, and credit related investments sourced on a proprietary basis by the manager. MA Financial Group is a global alternative assest manger specializing in private credit, real estate, and hospitality. They approximately $9.6 billion in AUM, according to their website.

Other Alternative Fund Registrations

It was a busy month in other segments of the alternative investments industry as well.

Three new tender offer funds filed registration statements, including FT Vest Total Return Income Fund: Series A3, FT Vest Hedged Equity Income Fund: Series A3, and North Haven Private Assets Fund.

Nuveen has filed for a new private NT BDC: the Nuveen Churchill Private Credit Fund.

Third Point, the hedge fund founded by Daniel Loeb, is also preparing to increase its presence in the private credit market. The filed a form 10 for a new Private NT BDC: Third Point Private Capital Partners. The minimum initial investment for the private offering will be $5 million.

Two well known managers filed Form 10s for new private NT REITs: Goldman Sachs Real Estate Finance Trust and Principal Credit Real Estate Income Trust.