Alternative Fund Advisors, LLC (AFA), announced that its private credit interval fund is available to registered investment advisors (RIAs) through Fidelity’s Institutional Wealth Services and National Financial marketplaces.
“Providing independent RIAs with access to the AFA Multi-Manager Credit Fund through Fidelity’s custodial platform aligns with our mission to offer attractive options for accredited investors seeking convenient and efficient ways to access private investments in a registered fund format,” says Marco Hanig, AFA Managing Principal and co-founder.
“Interval funds have expanded the accessibility to private investments by providing a structure for accredited investors and their advisors to tap into private credit via an investment vehicle with lower investment minimums, quarterly liquidity, and 1099 year-end tax reporting instead of the cumbersome K-1 associated with limited partnerships,” says Mike Jancosek, Head of distribution and AFA co-founding principal. “Interval funds also offer transparency afforded through public filings with the SEC.”
The AFA Multi-Manager Credit Fund (the “Fund”) seeks to provide high levels of income by investing in a range of public and private credit strategies. The Fund is diversified across multiple strategies and institutional specialist managers, each dedicated to uncovering distinct credit opportunities around the world. Aon Investments USA is the Fund’s sub-advisor and provides ongoing research, opinions, and recommendations regarding the selection of managers and investment strategies for inclusion in the Fund’s portfolio.
Structured as an interval fund that is registered under the Investment Company Act of 1940, the Fund provides convenient access to an asset class typically only available to institutional investors that are willing (and qualified) to commit to very high investment minimums, limited liquidity, and minimal transparency.
About Alternative Fund Advisors, LLC
Alternative Fund Advisors, LLC (“AFA”), was established in 2020 as the investment manager of the AFA Funds, a family of interval funds that enables individual investors to access private assets with greater convenience than traditional limited partnerships. AFA’s co-founders, Marco Hanig, PhD, and Mike Jancosek, MBA, draw on over 50 years’ combined experience building and managing successful alternative and traditional fund businesses.
The AFA family of funds invests in strategies and funds managed by institutional asset managers with specialized expertise in various segments of the private investment universe.
Investors should carefully consider the Fund’s investment objectives, risks, charges, and expenses before investing. This information is included in the Fund Prospectus and can be accessed by calling 800-452-6804 or by email at firstname.lastname@example.org. Read the prospectus carefully before you invest.
Foreside Financial Services LLC is the Fund’s Distributor.
An investment in the Fund involves a high degree of risk. An investment in the Fund should be viewed only as part of an overall investment program, and you should invest only if you can sustain a complete loss of your principal. Please read the prospectus carefully. An investment in the Fund is subject to, among others, the following risks:
- The Fund is not intended as a complete investment program, but rather the Fund is designed to help investors diversify into private equity investments.
- The Fund is a “non-diversified” management investment company registered under the Investment Company Act of 1940.
- An investment in the Fund involves risk. The Fund is new with no significant operating history by which to evaluate its potential performance. There can be no assurance that the Fund’s strategy will be successful.
- Shares of the Fund are not listed on any securities exchange and it is not anticipated that a secondary market for shares will develop.
- Shares are appropriate only for those investors who can tolerate a high degree of risk and do not require a liquid investment.
- There is no assurance that you will be able to tender your shares when or in the amount that you desire. Although the Fund will offer quarterly liquidity through a quarterly repurchase process, an investor may not be able to sell or otherwise liquidate all their shares tendered during a quarterly repurchase offer.
- The Fund’s investment in private credit companies is speculative and involves a high degree of risk, including the risk associated with leverage.
- Diversification does not assure a profit, nor protect against loss in a declining market.
Mike Jancosek, Founding Principal and Head of Distribution