CION Investments Sees Growth of Interval Fund Structure Across Multiple Channels

CION Investments believes that the growing adoption of the interval fund structure as a vehicle to access alternative investments validates its belief that retail investors are willing to trade liquidity for portfolio diversification and enhanced yield

CION Investments (CION), a leading manager of alternative investment solutions, continues to see growth of interval funds across multiple channels as investors become more comfortable with the illiquid nature of the structure and more conversant with the attributes. Interval Fund Tracker (IFT) reports that net assets under management have doubled since 2017 and recently reached $30 billion industry-wide.

IFT further reports that over the past year, interval fund registrations have surpassed more “traditional” retail alternative structures such as non-traded REITs and BDCs. The number of funds raising capital doubled during the first quarter of 2019, year-over-year. More than 50% of new funds are dedicated to credit strategies, as investors look beyond traditional bonds for income. Credit strategies now comprise approximately one-third of all interval funds’ net assets under management.

CION Ares Diversified Credit Fund (CADC), a credit interval fund managed by CION Ares Management, is now offered through several wirehouses, including UBS and Morgan Stanley, and independent broker-dealers, such as Cambridge Investment Group and Kalos Financial. CADC has also gained tremendous traction with registered investment advisors. CION believes that the rapid scale of CADC and other interval funds highlights retail investors’ increasing appetite for non-traded alternative strategies that aim to provide enhanced yield, lower durations and the flexibility to be defensive in today’s environment.

Mark Gatto, co-CEO of CION, commented: “We believe that the recent deployment of the interval fund structure for alternatives has resonated with retail investors. Individual investors increasingly understand that alternative credit investments can complement their portfolio of conventional fixed income. Investors appreciate the flexibility to go beyond the traditional 60/40 portfolio to generate income in this low-yield environment while managing risk.”

ABOUT CION

CION strives to level the playing field of investing by building better fund structures with true partnerships at the core and giving investors direct access to premier asset management historically only available to the largest institutions.

CION currently manages CION Investment Corporation, a leading non-traded BDC with approximately $1.9 billion in assets under management, and sponsors, through CION Ares Management, LLC, CION Ares Diversified Credit Fund.

Visit www.cioninvestments.com to learn more.

For more information, please contact:​

Alex Cavalieri​​
Head of Marketing
E: acavalieri@cioninvestments.com

Source: CION Investments

Share:


Categories: Investments

Tags: alternative investments, Ares, CION Investments, interval funds, investment management, private credit


Additional Links

About CION Investments

View Website

CION strives to level the playing field of investing by building better fund structures with true partnerships at the core and giving investors direct access to premier asset management historically only available to the largest institutions.

CION Investments
3 Park Ave
New York, NY 10016
United States