BNY Mellon Alcentra Global Multi-Strategy Credit Fund Inc., a non-traded closed-end fund, has completed its initial public offering and raised approximately $265.2 million. The offering consists of approximately 2.65 million shares priced at $100 each.
BNY Mellon Alcentra Global Multi-Strategy Credit Fund will terminate at the close of business on August 30, 2025, the sixth anniversary of the closing date of the initial public offering, unless extended for one year by the board.
“It’s a challenging time right now in the markets for investors with a slowing global economy and a low interest rate environment with investors on the lookout for yield,” said Andy Provencher, head of North America distribution at BNY Mellon Investment Management. “BNY Mellon Alcentra Global Multi-Strategy Credit Fund seeks to provide investors with access to credit strategies typically available to institutions and the potential for increased yield.”
The fund plans to invest at least 80 percent of its managed assets in credit instruments and other investments with similar economic characteristics including first and second lien senior secured loans; senior unsecured, mezzanine, and other collateralized and uncollateralized subordinated loans; unitranche loans, corporate debt obligations other than loans; and structured products including collateralized bond, loans and other debt obligations, structured notes, and credit-linked notes.
The fund intends to offer limited liquidity to investors through quarterly tender offers beginning in approximately one year for up to 2.5 percent of its then-outstanding shares of common stock.
BNY Mellon Investment Adviser Inc. serves as investment manager and Alcentra NY LLC serves as the sub-investment adviser. The fund is managed by a team of Alcentra employees, including Vijay Rajguru, global chief investment officer; Leland Hart, head of U.S. loans and high yield; Chris Barris, global head of high yield and deputy chief investment officer; Kevin Cronk, head of U.S. credit research; Hiram Hamilton, global head of structured credit; and Suhail Shaikh, head of U.S. direct lending.
BNY Mellon Securities Corporation, a subsidiary of BNYM Investment Adviser was the fund’s principal underwriter and distributor; and Morgan Stanley Smith Barney LLC and BofA Securities Inc. were the dealers in connection with the offering.
Alcentra Group is one of the world’s leading sub-investment grade credit asset managers focusing on the U.S. and European markets and has approximately 75 separate investment vehicles and accounts totaling approximately $40 billion as of June 30, 2019.
BNY Mellon Investment Management is one of the world’s largest investment firms and one of the top U.S. wealth managers, with $1.8 trillion in assets under management as of June 30, 2019.