Interval Fund Sales Up Significantly in August
September 12, 2018 | James Sprow | Blue Vault
Sales for interval funds and nontraded closed-end funds reported to Blue Vault for August increased 46.5% from July’s total for nine funds. Ten interval funds reported August sales totaling $262.4 million, up from $174.4 million in July. Of that increase, first-time reporting Blackstone/GSO Floating Rate Enhanced Income contributed $40.5 million. Still, without the Blackstone interval fund contribution, sales of the other nine interval funds increased 25.4% from July’s total.
Griffin Institutional Access Real Estate led all reporting interval funds, raising $102.4 million in August, up from $85.8 million in July, a 19.3% increase. Next among the reporting interval funds was Bluerock’s Total Income+ Real Estate Fund with $56.3 million in August sales, up from $48.8 million in July, a 15.5% increase. Other interval funds with significant August sales were Blackstone/GSO Floating Rate Enhanced Income with $40.5 million, a first-time report, and CION Ares Diversified Credit Fund with $24.6 million versus $11.3 million in July. Griffin Capital’s other interval fund, Griffin Institutional Access Credit Fund had $13.3 million in sales in August, up from $9.0 million in July.
Three nontraded closed-end funds reported sales to Blue Vault in August. Trilinc’s Greenbacker Renewable Energy Company reported August sales of $13.3 million, virtually the same as July. Steadfast’s Alcentra Global Credit Fund reported sales of $5.2 million, up from $3.7 million in July. The only other nontraded closed-end fund that reported sales to Blue Vault for August was Colony Capital’s NorthStar Real Estate Capital Income Fund with sales of just $0.2 million in August, down from $0.3 million in July.
Two sponsors reported sales of nontraded preferred stock by their listed REITs in August. Bluerock Capital reported nonlisted preferred stock by Bluerock Residential Growth REIT of $9.5 million in August, down from $10.7 million in July. CIM Commercial Trust (CMCT) had nonlisted preferred sales in August of $1.3 million, down from $1.7 million in July.
CNL Financial Group’s CNL Strategic Capital program reported sales of $2.5 million in August in its public offering, after raising private capital of approximately $82 million. This direct participation program commenced operations in February 2018 and invests in both the common equity and debt of middle-market businesses. The fund, neither a typical BDC nor an interval fund, has made controlling equity and debt investments in two middle-market businesses and has a portfolio with a fair value of $78.2 million as of June 30, 2018.
Blue Vault is just what advisors need to size up the different offerings in the nontraded REIT market. Just as importantly, it’s what the industry needs to encourage best practices among REITs.