HRC Financial Group, a specialist in the creation and marketing of registered investment companies, separately managed accounts and alternative investments, entered into a partnership with Sierra Crest Investment Management and Mount Logan Management to offer investors two new credit funds: the Opportunistic Credit Interval Fund (OCIF) and Alternative Credit Income Fund (ACIF).
OCIF, an all-weather total return credit strategy targeting private originations and secondary investments in the U.S. and European middle markets, aims to generate attractive risk-adjusted returns through three unique investment approaches: private lending and structured credit, asset-based lending and dislocated liquid credit.
The fund’s primary objective is to produce capital appreciation and current income while targeting quarterly distributions, and it seeks to provide a full credit cycle investment offering that utilizes liquid and illiquid strategies to opportunistically allocate capital amid both secular and cyclical investing trends.
ACIF attempts to generate above-market yield and above-market returns by investing across the corporate credit universe. Tilting between private lending and discounted public market securities, the fund attempts to deliver returns throughout the credit cycle. Through 90-day redemptions, the fund attempts to protect principal by limited forced sales and endeavors to purchase dislocated securities during periods of market stress.
“We’re thrilled to work with the BC Partners team to distribute these two funds, as our firm expands its offerings in the private credit space,” Tim Reick, CEO of HRC, said. “Our leadership team has been fortunate to work together through numerous market cycles. We’re excited to apply our expertise and offer access to differentiated private credit strategies that have historically been unavailable to retail investors, especially given how the asset class has grown over the past decade. BC Partners has established itself as a global leader across private markets, and we believe our work together will continue to meet the needs and interests of our clients.”
“This new collaboration with HRC is a natural partnership, as our teams share a focus on providing investors with innovative portfolio solutions that address the needs of today’s modern market,” Ted Goldthorpe, head of BC Partners Credit, said.
“The ACIF is among, if not the, first corporate credit interval funds, with a track record spanning nearly eight years,” Mike Terwilliger, portfolio manager for ACIF, said. “We are thrilled to partner with HRC to deliver our funds to a wider investment universe.”
“The era of double-digit equity returns is in the rearview mirror,” Terwilliger said. “Fixed income investments will play an increasingly important role in driving returns for investors going forward. HRC will ensure that more investors can access the differentiated credit strategies of ACIF and OCIF.”
Sierra Crest Investment Management is a credit-focused subsidiary of investment firm BC Partners.
Mount Logan Management is a subsidiary of Mount Logan Capital.
