Trevor Bisset

Jan 17. 18:17

Bluerock Registers the Bluerock High Income Institutional Credit Fund

Bluerock logo over a white background.

The Bluerock High Income Institutional Credit Fund (the "Fund"), registered on 1/5/2022, is Bluerock's latest foray into the world of interval funds. The Fund is apparently a second go at the Bluerock Institutional High Income Credit Fund, originally filed on 11/27/2019 then deregistered in June 2021 for the stated reason "Liquidation," despite never having been deemed effective by the SEC.

The Fund will attempt to generate high income, with secondary objectives of attractive, long-term risk adjusted returns and low market correlation, by investing in senior secured loans. The Fund will primarily achieve this by investing in senior, junior or equity tranches of entities that own diversified pools of senior secured loans known as Collateralized Loan Obligations ("CLOs"). CLO strategies featured in several of our top-yielding interval funds in 2021.

Unlike previous funds, Bluerock has hired WhiteStar Asset Management LLC as a Sub-Adviser, and charges an incentive fee of 100% of net investment income for income between 2% and 2.5% of net assets, and 20% of net investment income above 2.5% of net assets, subject to a 10% annualized benchmark.

Bluerock, based in New York, is a leading institutional alternative asset manager as well as an early mover in the interval fund space. One of their existing funds, the Bluerock Total Income+ Real Estate Fund, is the third-largest real estate-focused interval fund at over $2.6b in managed assets, and recently featured the highest Sharpe Ratio of all 6200+ registered '40 Act funds. Bluerock has more than $11.5b in acquired and managed assets across its product suite.