GCIF launches latest feeder fund

The origination of Guggenheim Credit Income Fund 2019 begins a new offering period for the BDC that will run through 2020.

Guggenheim Credit Income Fund (GCIF) launched its latest feeder fund to begin a new investment period.

The New York-based business development company on Tuesday announced the creation of Guggenheim Credit Income Fund 2019, which will operate as both a BDC and a feeder fund into GCIF, the master fund. The fund’s offering period is until the end of 2020, according to documents filed with the Securities and Exchange Commission.

GCIF 2019 will be managed by Guggenheim Investments. The vehicle will focus on lending to North American mid-market companies with EBITDA between $10 million and $25 million. The feeder will invest alongside GCIF.

The vehicle is offering a maximum of $958.56 million worth of common shares, with a minimum investment of $2,000. Investors must have a net worth of $250,000 or a gross annual income of over $70,000 with a net worth of at least $70,000 to be eligible. There is an offering expense of 1.5 percent.

GCIF’s portfolio had over $402 million in assets under management at the end of the third quarter across 79 companies located in the US, Canada and Western Europe. The portfolio was comprised of 93 percent senior-secured loans, 4 percent subordinated loans and 3 percent other. The portfolio was 91 percent floating-rate loans.

The vehicle’s net asset value per share at the end of the third quarter was $25.49, down $0.19 from that time in 2017. The portfolio’s yield for the third quarter was 9.1 percent.

The portfolio spans across 20 different industries with the top three being technology, healthcare and beverage, food and tobacco, which make up nearly 30 percent of the portfolio.

The firm was unable to be reached for comment by press time.

The BDC previously raised capital through its 2018 and 2016 feeder funds.

GCIF is privately managed by Guggenheim Investments, which is the global asset management and investment advisory branch of Guggenheim Partners. The firm has over $207 billion in assets under management.