Three Types of Interval Fund Conversions
Three funds in the process of converting to interval fund provide examples of three different fund conversion archetypes. Griffin Capital is using its recently launched interval fund to acquire its BDC. VII Peaks is directly converting its BDC to a new interval fund. Pathway Energy Infrastructure Management is converting an unlisted closed end fund.
Griffin Capital: Merger Transaction
Griffin Capital is using another interval fund that it Sponsors to acquire its BDC. Factright covered this transaction in detail:
Once this transaction is complete, the investors in the BDC will hold Class F Shares in the Griffin Institutional Access Credit Fund, an interval fund. Investment in an interval fund is subject to structural differences as compared to a BDC. Additionally, while both funds have similar investment objectives, Griffin Credit has a broad credit focused investment mandate, of which the BDC’s lower middle market directly originated loans are just one sleeve.
Shareholders in Griffin’s BDC approved this transaction earlier this month.
VII Peaks: BDC to Interval Fund Conversion
Shareholders in VII Peaks Co-Optivist Income BDC II voted to approve conversion of the BDC to an interval fund on December 28, 2016.