Alternative Credit Income Fund (RCIIX) Celebrates Sixth Anniversary, With 22 Consecutive Quarterly Distributions

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NEW YORK, November 2, 2021 / PRNewswire / – The Alternative Credit Income Fund (“the Fund”) (ticker symbols: RCIIX, RCIAX, RCIWX, RXICX, RCILX) announced the sixth anniversary of its initial investment in October 27, 2015. Since its inception, the Fund has distributed 22 consecutive quarterly dividends, representing $ 4.14 per share1, offering its investors a constant and stable income stream.

With a cumulative return of 64.1%, the Fund2 outperformed its most relevant bond benchmarks, notably the S & P / LSTA Leverage Loan index (+ 32.4%) and the US High Yield index (+ 49.3%)3.

“Six years ago, the Fund team recognized the importance of providing investors with access to professionally managed private lending solutions,” said the portfolio manager. Mike Terwilliger. “As expected, we are pleased to report today that the Credit Income Fund has generated above-market returns and returns for its investors.”

The Fund will also celebrate its first anniversary with its new investment advisor, Sierra Crest Investment Management LLC, a subsidiary of the global private equity fund BC Partners Advisor, which acquired the Fund on November, 1st, 2020.

“We are proud of what the Alternative Credit Income Fund has accomplished so far,” said Ted goldthorpe, CEO of BC Partners Credit. “And, I am even more excited about what the Fund will do for its investors in the future. Through the BC Partners platform, the Fund has significant access to directly generated private credit agreements, which will help to increase returns and reduce volatility in the future. ”

From September 30, 2021, the Fund (RCIIX) provided a dividend yield of 6.6%4 relative to the return of the US High Yield index of 4.1%.

“With returns near historic lows and public market multiples near historic highs,” continued Mr. Terwilliger, “the need for private lending solutions like the Alternative Credit Income Fund has never been greater. ”

As the following chart shows, the Fund outperformed the relevant fixed income benchmarks on an annual, 1, 3 and 5 year basis:


YTD

1 year

3 years

5 years

From the first
Investment*

Since
Creation**

Credit Income Fund (RCIIX)

12.69%

21.49%

8.07%

8.98%

8.60%

7.84%

Bloomberg Barclays US Agg Index

-1.44%

–0.71%

5.51%

3.14%

3.23%

2.91%

S & P / LSTA Leveraged Loan Index

4.67%

8.03%

4.18%

4.47%

4.78%

4.16%

* Data represents performance on the date the Fund started to invest actively on 10/27/2015.
** The creation date of the Fund is 04/17/2015.
The Bloomberg Barclays US Aggregate Index is a large-scale, flagship benchmark that measures the fixed rate taxable bond market, denominated in US dollars. The index includes treasury bills, government and corporate securities, MBS (fixed rate and agency hybrid ARM pass-throughs), ABS and CMBS (agency and non-agency).

The S & P / LSTA Leveraged Loan Total Return Index is a market value-weighted index designed to measure the performance of the US leveraged loan market based on market weights, spreads and market weights. interest payments.

You cannot invest directly in an index. The performances quoted represent past performances. Past performance is no guarantee of future results and investment returns and the principal value of the Fund will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Actual performance may be higher or lower than the performance data cited above. For up-to-date performance information up to the end of the most recent month, please call toll free (833) 404-4103 or visit www.AltCIF.com.

Total return measures the net investment income and the capital gain or loss of portfolio investments. All performance shown assumes reinvestment of dividends and capital gains distributions. The total annual operating expenses of the Fund as set out in the prospectus dated December 16, 2020: RCIAX (4.64%), RCIX (5.39%), RCIIX (4.38%), RCIWX (4.38%), RCILX (4.90%). The Advisors have contractually agreed to defer the collection of fees and / or to reimburse expenses, but only to the extent necessary to limit the total annual operating expenses of the Fund (excluding interest, dividend charges, depreciation / accretion on securities sold short, brokerage commissions, funds acquired (fees and expenses and extraordinary expenses) at 2.59% (RCIAX), 3.34% (RCICX), 2, 34% (RCIIX), 2.59% (RCIWX) and 2.84% (RCILX) of the average daily net assets of the funds via October 31, 2022.

The Fund is distributed by ALPS Distributors, Inc. (ALPS Distributors, Inc. 1290 Broadway, Suite 1000, Denver, CO 80203). Sierra Crest Investment Management LLC (the Fund’s investment adviser), its affiliates, ALPS Distributors, Inc. and US Bank, NA are not affiliated.

Investing involves risks. The return on investment and the principal value of an investment fluctuate, and an investor’s shares, once redeemed, may be worth more or less than their original cost. Alternative investment funds, ETFs, interval funds and closed-end funds are subject to management fees and other charges, which will be indirectly paid by the Fund. Debt securities are subject to credit risk and interest rate risk and may be subordinated to more senior debt securities. BDCs often use leverage to enhance returns and are subject to interest rate risk, credit risk and liquidity risk. CLOs are debt instruments but also carry additional risks associated with the complexity and leverage inherent in the structure of CLOs. Using leverage, such as borrowing money to buy securities, will incur additional expenses for the Fund and amplify the Fund’s gains or losses.

There is currently no secondary market for the shares of the Fund and the Fund expects no secondary market to develop. Shares of the Fund will not be listed on any stock exchange, which makes them inherently illiquid. An investment in shares of the Fund is not suitable for investors who cannot tolerate the risk of loss or who require liquidity other than that provided by the redemption policy of the Fund. Limited liquidity is provided to shareholders only through the Fund’s quarterly redemption offers, regardless of the performance of the Fund. The distribution policy of the Fund may, in certain circumstances, have certain unfavorable consequences for the Fund and its shareholders, as it may result in a return of capital, which reduces the investment of a shareholder’s assets in the Fund and , over time, increase the fund’s expense ratio. Any invested capital that is returned to the shareholder will be reduced by the costs and expenses of the Fund, as well as the applicable selling charge. Investments in lesser-known small and mid-cap companies may be more vulnerable than larger, more established organizations. Sales of securities to fund redemptions could reduce the market price of those securities, which in turn would reduce the net asset value of the Fund.

About the advisor
Sierra Ridge is a subsidiary of BC Partners Advisors LP (“BC Partners”), which has been investing for more than 30 years in Europe and North America and around 60 billion dollars in assets under management in private equity, private credit and real estate strategies. BC Partners operates a private equity investment platform, a credit investment platform (“BCP Credit”) and a real estate investment platform as fully integrated businesses. Sierra Crest the investment activity is carried out within the BCP Credit platform. Integration with BC Partners’ broader platform allows BCP Credit to leverage a team of investment professionals on its private equity platform, including its operations team. BC Partners has remained an independent partnership since its inception as a pan-European private equity manager. Its entrepreneurial spirit is anchored in the culture of its organization and is manifested in its three complementary and integrated activities.

Media inquiries

Devin Shorey
Prosek
Pro-[email protected]
302 593-3197


1

Represents dividends paid to Alternative Credit Income Fund I share (RCIIX) investors since its inception

2

Source: Bloomberg. Returns from 10/27/2015 to 10/27/2021; The Fund represents Alternative Credit Income Fund I Share (RCIIX); Total return measures the net investment income and the capital gain or loss of portfolio investments. All performance shown assumes reinvestment of dividends and capital gains distributions. The total annual operating expenses of the Fund as disclosed in the prospectus dated December 16, 2020 for RCIIX are 4.38%. The Advisors have contractually agreed to defer the collection of fees and / or to reimburse expenses, but only to the extent necessary to limit the total annual operating expenses of the Fund (excluding interest, dividend charges, amortization / accretion on securities sold short, brokerage commissions, funds acquired fees and expenses and extraordinary expenses to 2.59% (RCIIX) of the average daily net assets of the funds until October 31, 2022.

3

Source: Bloomberg. Returns from 10/27/2015 to 10/27/2021; The US High Yield Index represents the Bank of America US High Yield Index (H0A0)

4

To calculate the annualized distribution, the management of the Fund will annualize the most recent quarterly distribution paid to shareholders and divide it by the net asset value per share at the end of the quarter. The annualized distribution represents a single distribution of the Fund and does not represent the total returns of the Fund. The distribution includes a return of capital. Distributions are not guaranteed.

SOURCE BC Partners


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