Steadfast to Launch $3 Billion Closed-end Fund
Steadfast is launching a $3 billion closed-end investment fund called Steadfast Alcentra Global Credit Fund, according to preliminary documents filed with the Securities and Exchange Commission.
The fund, which plans to offer 300 million shares, intends to invest in lower middle-market and middle-market companies in the form of fixed and floating rate senior secured loans, second lien loans and subordinated debt and minority equity investments.
The company considers lower middle-market and middle-market companies to be companies having annual earnings, before interest, taxes, depreciation and amortization of between $5 million and $50 million and/or revenues between $25 million and $750 million.
Steadfast Alcentra Global Credit Fund plans to offer class A, class T, class D and class I shares on a continuous basis. There is a minimum initial investment of $4,000 for class A, class T and class D shares and a minimum initial investment of $10,000 for class I shares.
Class A shares will be priced at $10.00 each and include a 6 percent selling commission and 2 percent dealer manager fee.
Class T shares are priced at $9.68 each and include a 3 percent selling commission, 2 percent dealer manager fee, and an annual distribution fee of 1 percent (capped at 3 percent)
Class D shares are priced at $9.39 each and include a 2 percent dealer manager fee and an annual distribution fee of 0.5 percent (capped at 6 percent).
Class I shares are priced at $9.20 each and do not include a sales load, but have a 0.5 percent annual distribution fee (capped at 8 percent).
Closed-end funds differ from open-end funds in that investors in closed-end funds do not have the right to redeem their shares on a daily basis. To provide shareholders with limited liquidity, the fund intends to conduct quarterly repurchase offers.
Class T, class D and class I shares will be subject to an early withdrawal charge of 2 percent of the purchase price in the event that a shareholder tenders his or her shares for repurchase prior to the one-year anniversary of the purchase.
Class A shares purchased net of selling commissions and dealer manager fees will also be subject to an early withdrawal charge of 2 percent if tendered before the one-year anniversary. However, class A shareholders who pay selling commissions and dealer manager fees will not have to pay an early withdrawal charge.
Steadfast Investment Adviser, LLC will serve as the fund’s investment adviser, and Alcentra NY will serve as sub-adviser. Steadfast Capital Markets Group is the dealer manager for the offering.
Alcentra NY is the U.S. subsidiary of Alcentra Group, an asset management platform that manages approximately $29 billion in below-investment grade debt assets across more than 75 investment vehicles and funds. The Alcentra Group, which was purchased by BNY Mellon in 2006, was formed in 2002 through the merger of two asset management divisions acquired from Barclays Bank Plc in the United Kingdom and Imperial Credit Industries in the United States.
Steadfast Companies, a group of integrated investment, management and development companies is located in Irvine, California and owns and/or manages more than $5.4 billion in assets. Since its founding in 1994, Steadfast Companies has, directly or indirectly, sponsored 46 privately or publicly offered prior investment programs.
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