Bluerock Partners with CAIS to Expand Interval Fund Distribution
CAIS, a financial product platform for independent wealth management, and Bluerock Capital Markets, the managing broker dealer for alternative investment management firm Bluerock, have partnered to introduce interval funds onto the CAIS platform, which the companies say will broaden the product selection for advisors.
CAIS, a financial product platform for independent wealth management, and Bluerock Capital Markets, the managing broker dealer for alternative investment management firm Bluerock, have partnered to introduce interval funds onto the CAIS platform, which the companies say will broaden the product selection for advisors.
The first Bluerock product available on the CAIS platform—the Bluerock Total Income+ Real Estate Fund (TIPWX)—is an interval fund sub-advised by Mercer and Deutsche Asset Management with a focus on private equity real estate investments.
Bluerock Total Income+ has raised more than $1 billion in investor equity and net assets under management of approximately $930 million. Recent investments include contributions to five institutional, private equity investments, including: Morgan Stanley, Clarion, Blackstone, RREEF, and Invesco. The fund’s first quarter distribution rate was 5.25 percent.
While the fund will be purchased through custodians via a ticker symbol instead of a subscription document, CAIS will use its platform to educate advisors on Bluerock’s interval funds. CAIS and Bluerock also plan to work with the advisor community to create new interval products tailored to their investment needs.
“Bluerock interval funds afford individuals the opportunity to directly invest at lower minimum investments in a highly diversified, income-generating pool of institutional private equity real estate strategies managed by top-ranked institutional managers,” said Brad Walker, CAIS managing director and head of alternative investments.
“A growing number of advisors have demonstrated an interest in adding interval funds to their alternative investment mix,” he added.
An interval fund is a professionally managed investment company registered as a closed-end fund under the Investment Company Act of 1940 and is touted as an investor-friendly alternative product due to its transparent nature. Interval funds calculate NAV daily, offer liquidity events in the form of periodic share repurchases, and provide tax reporting via Form 1099.
The ability to invest in illiquid investment vehicles without limitation allows interval funds to pursue higher risk-adjusted returns while providing lower correlations to the public equity and fixed income markets, according to the company.
“CAIS has built the premier platform for independent advisors interested in learning about and adding alternative investments to their client portfolios,” said Jeffrey Schwaber, CEO of Bluerock Capital Markets. “We couldn’t think of a better partner for this undertaking. We look forward to a long and prosperous relationship with CAIS, innovating new products and strategies tailored specifically to the wants and needs of the independent wealth channel for years to come.”
The senior management teams of CAIS and Bluerock Capital Markets will host a Total Income+ Real Estate Fund launch call for all interested independent wealth management professionals on May 17, 2018 at 4:00 p.m. EDT.
CAIS provides a financial product platform offering access to alternative investment funds, IPOs and follow-ons, and structured notes. Independent due diligence services are provided by Mercer.
Bluerock Capital Markets LLC provides educational information related to alternative investment opportunities for financial advisors and their clients and distributes a range of alternative investment products through broker-dealers and investment professionals. Bluerock has more than $4.5 billion of assets under management and is headquartered in Manhattan with regional offices across the U.S.
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