Raymond James has filed paperwork with the US Securities and Alternate Fee (SEC) to launch a non-public credit score interval fund.
The fund shall be known as the RJ Personal Credit score Earnings Fund, and goals to generate present revenue and preserving capital.
Its funding technique is to straight or not directly make investments not less than 80 per cent of its belongings in non-public credit score belongings together with lending on to firms, and investing in enterprise growth firms and funding funds which supply publicity to personal credit score. Between 30 and 70 per cent of the fund’s allocations shall be made into funding funds.
The fund will supply restricted liquidity to traders by making quarterly provides to repurchase between 5 and 25 per cent of its excellent shares at web asset worth.
Learn extra: Multiple-third of dry powder is held by high 20 non-public credit score managers
The fund can also utilise leverage through quite a few credit score devices together with credit score services, particular goal automobiles, and notes.
The funding supervisor shall be Raymond James Funding Administration Inc, whereas Mercer Investments has been listed on the paperwork as a marketing consultant.
The fund will supply two courses of shares. Class S shares could have a minimal buy-in of $25,000 (£20,219.12), whereas Class I shares have a minimal funding of $1m.
Raymond James has been enhancing its non-public credit score providing over the previous yr.
Final April, the agency expanded its Personal Capital Advisory Funding Banking observe with the addition of 4 senior bankers.
And in Could 2024, the corporate partnered with Eldridge Industries to launch a brand new non-public credit score enterprise known as Raymond James Personal Credit score.
The enterprise is targeted on 4 key sectors: client; diversified industrials; healthcare; and know-how and companies.
Learn extra: AllianceBernstein launches credit score alternatives interval fund