Medley to Launch $1 Billion Interval Fund

Medley Management Inc. (NYSE: MDLY), a credit-focused asset management firm with approximately $5.3 billion of assets under management, launched a $1 billion interval fund called the Sierra Total Return Fund (NASDAQ: SRNTX).

The fund intends to invest in a portfolio of debt and fixed-income related equity securities and plans to allocate funds among four asset strategies, including public and private credit, public investment funds, private investment funds and other structured credit products.

“The fund is designed to allow shareholders access to both public and private securities at all levels of the capital structure,” said Seth Taube, Sierra Total Return Fund chief executive officer. “Through the fund, retail investors have the opportunity to invest in an institutional credit strategy that offers an attractive alternative in today’s yield-starved fixed income market.”

Sierra Total Return Fund, which registered 40 million shares of common stock, intends to offer three classes of shares: Class A shares, Class T shares, and Class I shares, but will only offer class T shares until the SEC grants exemptive relief to issue multiple share classes.

Class T shares will be offered for $25.51 each and include a 2 percent front-end load, comprised of a 0.75 percent dealer allowance fee and a 1.25 percent dealer manager fee. Class T shares are charged a 0.75 percent annual distribution fee that is capped at 6.25 percent. The minimum initial for class T shares is $2,500 for regular accounts and retirement plan accounts.

To provide liquidity to shareholders, the fund said that it intends to make quarterly offers to repurchase its outstanding shares at net asset value.

Sierra Total Return Fund is sponsored by Medley LLC, an affiliate of Medley Management. STRF Advisors LLC, another Medley Management affiliate, serves as the fund’s adviser and will manage the investment portfolio. Through Medley, the adviser is currently staffed with more than 80 employees.

SC Distributors is the dealer manager for the fund, and ALPS Distributors will serve as the principal underwriter and distributor.

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