Variant Investments has launched the Variant Alternative Income Fund, a ’40 Act closed-end interval fund with a strategy designed to provide an alternative to public market exposure by focusing on niche assets with strong cash flows and low market correlations.
As listed in the prospectus, the fund will invest in assets such as music royalties, litigation finance, and government receivables.
Variant Investments was formed in 2017 by three Directors of Research from CTC | myCFO, a firm serving ultra high net worth individuals and single-family offices. The team has decades of experience investing in niche markets and is eager to bring the opportunities to a broader audience.
“We are thrilled to be able to provide access to these niche opportunities during a time when income is so scarce and believe the interval fund structure is an ideal vehicle to do so,” says JB Hayes (pictured), one of Variant’s founders.
The Interval Fund will provide investors with daily pricing, increased transparency, simplified 1099 reporting, and quarterly liquidity with a fund level gate of 5-25 per cent of NAV, to a mix of assets that rarely offers such features.
“The Interval Fund structure allows us to provide investors with less liquid, potentially higher yielding alternative investments. We have been building a compelling portfolio of high cash flow investments in our private fund over the last year, and we are excited to convert them into our interval fund to serve the needs of today’s sophisticated investor,” says Curt Fintel, Variant founder and former Chief Investment Strategist at CTC.
The Institutional share class (NICHX) is available as of 1 October, while the Investor share class (UNIQX), will be available 1 November 2018.