The Alternative Credit Income Fund has now distributed 22 consecutive quarterly distributions since inception on 27 October, 2015.
With a cumulative return of 64.1 per cent, the Fund has outpaced its most relevant fixed income benchmarks, including the S&P/LSTA Leverage Loan Index (+32.4 per cent) and US High Yield Index (+49.3 per cent).
“Six years ago, the Fund’s team recognised the value of providing investors with access to professionally managed, private credit solutions,” says portfolio manager Mike Terwilliger. “As predicted, today we are pleased to report that the Credit Income Fund has delivered above‐market yields and returns for its investors.”
The Fund will also celebrate its one‐year 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 1 November, 2020.
“We are proud of what the Alternative Credit Income Fund has achieved thus far,” says Ted Goldthorpe, CEO of BC Partners Credit. “And, I am even more excited about what the Fund is going to do for its investors going forward. Through the BC Partners platform, the Fund has significant access to directly originated private credit deals, which will help boost returns and lower volatility going forward.”
As of 30 September, 2021, the Fund (RCIIX) provided a dividend yield of 6.6 per cent versus the US High Yield Index yield of 4.1 per cent.
“With yields near historical lows and public market multiples near historic highs,” says Terwilliger. “The need for private credit solutions like the Alternative Credit Income Fund has never been greater.”