Litigation Expected as SEC’s Ruling on Boulder No-Action Letter Limits Activism
The SEC’s decision in May to rescind the Boulder No-Action letter, allowing a closed-end fund to opt into a state control share statute without risking an enforcement action, could have a chilling effect on activism, and could face litigation for violating the Investment Company Act.
Despite Headwinds caused by the Covid-19 Pandemic, Many Industries Still Present Investment Opportunities in Real Estate
Many industries and sectors have been affected by the pandemic but despite how the current situation has so far changed the industry, the investment outlook is still positive.
Interval Funds Provide Access to Investments Normally Unavailable to Retail Investors
Many asset classes offered today through interval funds have historically only been available through private LP structures and have generally not been accessible to retail investors.
Larger BDCs Weathering COVID Much Better than Those Targeting Lower Middle Market Businesses
BDCs with $4 billion or more in investments are weathering the impacts of the COVID-19 pandemic better than those that are targeting lower and middle market businesses.
Closed-End Funds Finding Investment Opportunities Despite Ongoing Market Challenges
With the US presidential election next month, the ongoing impact of the coronavirus pandemic and the question of whether the economy is still in a recession or in a recovery, it can be tough for managers in the closed-end fund (CEF) space to navigate that uncertainty while preserving capital.
Goldman Sachs Eyes Real Estate Investment Opportunities with its First Interval Fund
Goldman Sachs has added interval funds to its growing offerings of retail alternative investments. During a keynote address at AICA’s Summer Summit on August 13th, Collin Bell, Managing Director and Global Head of Client Portfolio Management for Fundamental Equity within Goldman Sachs Asset Management, said Goldman has been involved in managing money in the form of traditional ‘40 Act funds and separately managed accounts for decades, but entered the interval fund space in May with the acquisition of a real estate interval fund.
Managers Now Offering Term CEFs to Minimize Premium Discounts
While closed-end funds (CEFs) have traditionally been perpetual offerings, more CEFS have term offerings that allow investors to liquidate at net asset value and minimize premium discounts.
BDC Industry Evolution to Favor the Largest Players
The BDC industry will evolve toward favoring the largest players who can make use of their scale to both address more attractive parts of the market and leverage their cost bases.
Demand for CEFs Expected to Increase as Investors Look for Alternative Fixed Income Products
As traditional fixed-income portfolios and allocations are becoming a thing of the past, individual investors are starting looking at alternative fixed income solutions such as closed-end funds.
Closed-End Funds Offer Equity Investment Opportunities Despite Increased Volatility
Although indiscriminate volatility has caused valuations to decline significantly since March, managers have been able to take advantage of lower prices to cheaply buy some company equities.
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