Steadfast Alcentra fund starts operations

The fund has acquired a ‘diverse portfolio of bond and loan positions’ with proceeds from its IPO. 

The newly-minted global credit fund run by Steadfast Companies and Alcentra has satisfied its minimum offering requirement of $3 million and is set to begin distributions to shareholders at the beginning of September, the managers said on Thursday.

The Steadfast Alcentra Global Credit Fund has commenced operations upon reaching its minimum offering of common stock, according to a statement. In so doing, the fund has authorised a daily distribution to stockholders beginning on 1 September. The distributions will be equal to 0.17 cents per Class T share of common stock and will be paid in either cash or shares.

The Global Credit Fund has already acquired a “diverse portfolio of bond and loan positions with the offering proceeds”, the statement read. The firms were not immediately available to comment further or elaborate on the portfolio.

Michael Tamasco, president of the Global Credit Fund, said in the statement that the fund will “now aggressively pursue” its strategy of lending to mid-market firms in the US and Europe.

Tamasco took the helm at the global fund this summer, leaving his post as managing director and head of North American business at Optima Fund Management, a hedge fund and alternative investment firm. In June, the firms had launched the fund’s initial public offering of $3 billion in common stock, setting an initial price of $9.68 per share.

Steadfast Alcentra Global Credit Fund provides floating- and fixed-rate senior secured loans, second lien loans, subordinated debt and minority equity investments to companies with EBITDA of between $5 million and $50 million in western Europe and the US, according to the prospectus filed in May with the US Securities and Exchange Commission.

The fund investments range in size from $5 million to $15 million, with the aim to build a portfolio of over 100 positions, and seeks to invest in debt with interest rate coupons of  6-10 percent on senior term loans, 10-11 percent on second lien investments and 12-15 percent on mezzanine debt.

Alcentra, a subsidiary of Bank of New York Mellon that manages below-investment-grade credit, sub-advises the vehicle. Steadfast, an investment company based in Irvine, California, is the investment advisor for the fund.