Bluerock, an alternative asset manager, has launched the Bluerock High Income Institutional Credit Fund (Tickers: IIMAX, IIMCX, IIMWX), an income-focused interval fund with a portfolio comprised of pools of diversified collateralized loan obligations (CLOs). The fund has registered an unlimited number of shares.
According to Bluerock, the fund seeks to provide investors with current income, targeting approximately 8 percent annually. The fund launched with approximately $85 million of initial seed capital, and its initial portfolio provides exposure to $4.7 billion of underlying loans from more than 670 issuers and a 100 percent floating rate structure, the company said.
Bluerock partnered with WhiteStar Asset Management, the sub-advisor to the fund. WhiteStar is the CLO, structured products, and broadly syndicated credit arm of Clearlake Capital Group, which has more than $72 billion in combined assets under management.
“Bluerock High Income Institutional Credit Fund is a continuation of our commitment to develop investment products that provide retail investors with access to investment opportunities traditionally limited to institutions and that have attractive risk-adjusted returns across multiple market cycles…,” said Ramin Kamfar, chief executive officer and founder of Bluerock. “We strongly believe that CLOs provide an attractive investment option for investors given the floating rate nature of the senior loan exposure and historically consistent income generation.”
Bluerock said that it believes that access to senior secured loans via CLOs is attractive because of their focus on large cap, broadly syndicated loans to companies with higher revenues and EBITDA compared to middle market loans.
The fund will offer four classes of shares: Class A, Class C, Class F and Class I shares, which are priced at the net asset value per share of each share class, plus any applicable sales load. Class C, Class F and Class I shares are not subject to sales charges and are each offered by a separate prospectus.
According to the prospectus filed on June 24th, Class A shares are priced at an initial NAV of $25.00 per share with a maximum sales load of 5.75 percent.
The minimum initial investment for Class A shares is $2,500 for regular accounts and $1,000 for retirement plan accounts, with a minimum subsequent investment of at least $100 for regular accounts and $50 for retirement plan accounts.
The interval fund will make quarterly repurchase offers at net asset value of no less than 5 percent of the outstanding shares. “The first repurchase offer is expected to occur in September 2022 and will occur no later than two periodic intervals after the effective date of the fund,” the prospectus states.
ALPS Distributors serves as the fund’s principal underwriter.
The Bluerock High Income Institutional Credit Fund is Bluerock’s second interval fund, joining Bluerock Total Income+ Real Estate Fund which has more than $6.3 billion in net assets, making it the largest real estate-focused interval fund and the third largest among all active interval funds, the company said, citing Bloomberg and intervalfundtracker.com.
Bluerock is based in New York and has more than $14 billion in acquired and managed assets.