CIM Group has launched a real assets and credit fund. The fund will target real assets and credit and credit-related assets. CIM seeks to invest an aggregate of $20 million. CIM Capital IC Management is the investment advisor to the fund.
LOS ANGELES–(BUSINESS WIRE)–CIM Group (“CIM”) announced the launch of CIM Real Assets & Credit Fund (“CIM RACR” or the “Fund”), a new closed-end interval fund. CIM RACR seeks to invest in a mix of institutional-quality real assets and credit instruments. The Fund’s investment objective is to generate current income through cash distributions and preserve shareholders’ capital across various market cycles, with a secondary objective of capital appreciation. CIM Capital IC Management, LLC serves as the investment adviser to CIM RACR.
“We believe that CIM RACR will benefit from CIM’s combined real assets, credit and transaction experience, along with our deal-sourcing capabilities, leveraging the extensive expertise across our organization,” said David Thompson, Chief Executive Officer of the Fund. “We are targeting the construction of a balanced portfolio of real assets and corporate credit assets, allowing investors the opportunity to leverage the potential benefits of both asset classes with a goal of providing income and capital preservation, without the double fees associated with typical real estate-focused interval funds.”
CIM RACR will primarily invest in real assets and credit and credit-related assets. Real assets may consist of direct real estate and infrastructure held through one or more wholly-owned real estate investment trust (“REIT”) subsidiaries, as well as publicly traded REITs, non-affiliated private REITs and real estate debt. Credit-related investments may include investments in floating and fixed rate loans; broadly syndicated senior secured corporate loans; investments in the debt and equity tranches of collateralized loan obligation vehicles (“CLOs”); and opportunistic credit investments. Additionally, the Fund may provide an opportunity for individuals to invest alongside institutional partners, potentially aligning interests among the sponsor, partners and shareholders.
To further align the interests of CIM with investors, an affiliate of CIM will invest an aggregate of $20 million in the Fund over time as the Fund receives subscriptions from investors. CIM RACR is available in four share classes: C Shares (RACRX), A Shares (ARACX), I Shares (IRACX) and L Shares (LRACX).
OFS Capital Management, LLC (“OFS”), an investment adviser registered under the Investment Advisers Act of 1940, as amended (the “Advisers Act”), has been selected as the Fund’s investment sub-advisor for CIM RACR’s corporate credit assets.
OFS is a full-service provider of capital and levered financial solutions with $2.1 billion in assets under management with a focus on middle market lending, broadly syndicated loans and structured credit. OFS serves as the investment adviser to business development companies, registered closed-end funds; separately managed, proprietary and sub-advised accounts; and as collateral manager to various collateralized loan obligations.
ALPS Distributors, Inc. is the distributor of the CIM Real Assets & Credit Fund. CIM Group, LLC and ALPS Distributors, Inc. are not affiliated. ALPS Distributors, Inc., 1290 Broadway, Suite 1000, Denver, CO 80203, Member FINRA.
1CIM RACR Declares First Distribution
The Board of Directors of the Fund declared a quarterly cash dividend of $0.125 per share of common stock today for each of May and June 2020, representing an annual distribution rate of 6.0% of NAV per share. The dividend will be payable as follows: $0.125 per share to be paid on June 3, 2020 to stockholders of record at the close of business on June 1, 2020 and $0.125 per share to be paid on July 6, 2020 to stockholders of record at the close of business on July 1, 2020. For shares issued during the quarter, the dividend will be prorated from the date of issuance, and the monthly dividend payments will reflect such proration, as applicable. All or a portion of CIM RACR’s distributions may consist of a return of capital and should not be confused as yield of income.
About CIM Real Assets & Credit Fund (CIM RACR)
CIM RACR is a newly organized, non-diversified, closed-end management investment company, registered under the 1940 Act that continuously offers its common shares of beneficial interest and is operated as an “interval fund.” CIM RACR’s investment objective is to generate current income through cash distributions and preserve shareholders’ capital across various market cycles, with a secondary objective of capital appreciation. CIM RACR is advised by CIM Capital IC Management, LLC and sub-advised by CIM Capital SA Management, LLC and OFS Capital Management, LLC, each of which are investment advisers registered under the Advisers Act and affiliates of CIM Group, LLC. For additional information, please visit www.cimgroup.com.