CEF Launch: Resource Credit, Pomona, Altegris KKR and Forefront

In this edition of CEF Launch, an overview of fund filings from:

Resource Credit Income Fund
Pomona Private Equity Fund
Altegris KKR Private Equity Fund
Forefront Income Trust

Resource Credit Income Fund

On December 16, Resource Financial Fund Management, Inc. filed paperwork with the SEC for the launch of the Resource Credit Income Fund, an unlisted closed-end interval fund that has an investment objective of producing current income, with a secondary objective of achieving long-term capital appreciation with moderate volatility and low to moderate correlation to the broader equity markets.  The fund intends to meet its investment objectives by investing in the debt of small- to middle-market companies, including investments in fixed-income oriented funds.

The adviser is affiliated with Resource America, Inc., an asset management company that manages approximately $19.4 billion as of September 30.  The fund is seeking to raise up to $500 million and will be distributed by ALPS Distributors.  For more information, click here.  

Pomona Private Equity Fund

On December 15, Pomona Management, LLC filed amended paperwork with the SEC for the launch of the Pomona Private Equity Fund, an unlisted closed-end fund.  The fund will be offered to “accredited investors” through a ’33 Act registered offering and will pursue an investment objective of long-term capital appreciation by investing in private equity funds, with a primary focus of investing in PE secondaries.  

Pomona Management, the adviser, was founded more than 20 years ago and manages more than $8.5 billion in committed capital, is a global, value-oriented private equity firm specializing in investing across the private equity spectrum.  The fund will be distributed by Voya Investments Distributor, LLC.  For more information, click here.

Altegris KKR Private Equity Fund

On December 3, Altegris Advisors, L.L.C. filed amended paperwork with the SEC for the launch of the Altegris KKR Private Equity Fund, an unlisted closed-end fund that will invest all of its assets in a related master fund.  The fund will be offered to “accredited investors” through a ’33 Act registered offering and will pursue an investment objective of long-term capital appreciation by investing in private equity funds, with at least 70% of its assets invested in KKR funds.  

Altegris Advisors, L.L.C., the adviser to the master fund, is part of the Altegris Group of Companies and managed more than $1.08 billion in assets of alternative strategy mutual funds as of December 31, 2013.  StepStone Group LP, which is an independently-owned investment firm focused exclusively on private markets and managed approximately $10 billion in assets as of December 31, 2013, will act as the master fund’s sub-adviser.  The fund will be distributed by Altegris Investments, Inc. and is seeking to raise up to $360 million in the feeder fund (load shares) and $375 million in the master fund (no load shares).  For more information, click here and here.

Forefront Income Trust

On December 1, Forefront Capital Advisors, LLC filed its final amended paperwork with the SEC for the launch of Forefront Income Trust, an unlisted closed-end interval fund that launched on December 8.  The fund will pursue an investment objective seeking current income, primarily by investing in junk bonds, high yield loans and debt instruments with maturities of generally not more than three years that represent what the adviser believes to be deep value opportunities.   

The fund will not pay its investment adviser, Forefront Capital Advisors, a management fee, but will pay it an advisory fee only after shareholders receive the first 8.00% of annual pre-advisory fee net investment income.  Thereafter, the adviser will receive 80% of such income above 8.00% to and including 18.00% (while shareholders receive 20%), and 20% of such income above 18.00% (while shareholders receive 80%). The fund is distributed by Northern Lights Distributors, LLC and is seeking to raise up to $100 million.  For more information, click here.