Griffin Capital Announces Launch of Institutional Access Credit Fund
El Segundo, Calif. (April 3, 2017) – Griffin Capital Company, LLC (“Griffin Capital”) today announced the launch of its Institutional Access Credit Fund (“Credit Fund”), an income-focused global credit solution structured as a ’40 Act closed-end interval fund that is designed to provide individual investors with a portfolio of actively-managed debt securities. The Credit Fund is actively managed by Bain Capital Credit(1), one of the most widely-respected investment managers in the global credit markets, and seeks to provide individual investors access to debt market opportunities that are typically reserved for large institutional investors.
The Credit Fund’s investment objective is to generate both current income and capital appreciation with low volatility and low correlation to the broader markets. The Credit Fund offers investors access to a multi-strategy, global institutional credit strategy focused on delivering strong risk-adjusted returns, backed by Griffin’s extensive expertise in managing institutional portfolios designed for individual investors and Bain Capital Credit’s vast experience and worldwide presence in the global credit markets.
Assets in the Credit Fund’s portfolio may include bank loans, high-yield bonds, structured credit, middle-market direct loans and non-performing loans. The Credit Fund’s structure as a ’40 Act interval fund provides individual investors with periodic liquidity due to its obligation to repurchase a limited amount of shares at certain intervals, typically quarterly.
The Credit Fund is available in the following share classes: Class A (CRDTX); Class C (CGCCX); and Class I (CRDIX). The fund’s registration statement was declared effective on March 30, 2017.
Griffin Capital Asset Management Company, LLC President Randy Anderson said, “We are very pleased to announce the launch of the Griffin Institutional Access Credit Fund. By providing individual investors with access to a portfolio of institutional, diversified credit instruments that draws upon the expertise and investment management skills of Bain Capital Credit, we are potentially enabling “Main Street” investors to capitalize on opportunities for income generation and capital appreciation that have previously been available only to large institutions.”
Jeffrey Hawkins, a Managing Director and Chief Operating Officer at Bain Capital Credit, said, “The Griffin Institutional Access Credit Fund represents the first fund that leverages the Bain Capital Credit platform to work for individual investors. We could not have chosen a more experienced or knowledgeable partner than Griffin Capital to make this offering possible. Its ability to develop and manage institutional portfolios for individual investors has been crucial to this process, and we are excited to work with them in an advisory capacity again in the future.”
Dr. Anderson concluded, “Griffin Capital is well-known for our expertise in managing institutional assets and our consistent ability to access attractive investment opportunities. We are excited to expand this expertise to the global credit markets through our new sub-advisory partnership with Bain Capital Credit, and we look forward to all that we may achieve together in the years ahead.”
(1) BCSF Advisors, LP, a subsidiary of Bain Capital Credit will sub-advise Griffin Institutional Access Credit Fund.
About Griffin Capital Company, LLC
Griffin Capital Company, LLC (f/k/a Griffin Capital Corporation) (“Griffin Capital”), is a privately held, Los Angeles headquartered investment and asset management company with a 22-year track record sponsoring real estate investment vehicles and managing institutional capital. Led by senior executives with more than two decades of real estate experience collectively encompassing over $22 billion of transaction value and more than 650 transactions, Griffin Capital and its affiliates have acquired or constructed approximately 58.4 million square feet of space since 1995. Griffin Capital and its affiliates own, manage, sponsor and/or co-sponsor a portfolio consisting of approximately 42 million square feet of space, located in 30 states and the United Kingdom, representing approximately $7.3 billion* in asset value, based on purchase price, as of December 31, 2016. Additional information about Griffin Capital is available at www.griffincapital.com.
About Bain Capital Credit
Bain Capital Credit (www.baincapitalcredit.com), founded as Sankaty Advisors in 1998, invests up and down the capital structure and across the spectrum of credit strategies, including leveraged loans, high-yield bonds, distressed debt, private lending, structured products, non-performing loans and equities. Our team of more than 200 professionals creates value through rigorous, independent analysis of thousands of corporate issuers around the world. In addition to credit, Bain Capital invests across asset classes including private equity, public equity and venture capital, and leverages the firm’s shared platform to capture opportunities in strategic areas of focus.
*Includes the property information related to interests held in certain joint ventures.
Investing in Griffin Institutional Access Credit Fund involves risks, including the risk that you may receive little or no return on your investment or that you may lose part or all of your investment. The ability of the Fund to achieve its investment objective depends, in part, on the ability of the Advisor to allocate effectively the assets of the Fund among the various securities and investments in which the Fund invests. There can be no assurance that the actual allocations will be effective in achieving the Fund’s investment objective or delivering positive returns. Investors will pay offering expenses and, with regard to those share classes that impose a front-end sales load, a sales load of up to 5.75%. An investor will need to receive a total return at least in excess of these expenses to receive an actual return on the investment.
Diversification does not eliminate the risk of experiencing investment losses. Foreign investing involves special risks such as currency fluctuations and political uncertainty.
The Fund’s investments may be negatively affected by the broad investment environment and capital markets in which the Fund invests, including the real estate market, the debt market and/or the equity securities market. The value of the Fund’s investments will increase or decrease based on changes in the prices of the investments it holds. This will cause the value of the Fund’s shares to increase or decrease. The Fund is “non-diversified” under the Investment Company Act of 1940 since changes in the financial condition or market value of a single issuer may cause a greater fluctuation in the Fund’s net asset value than in a “diversified” fund. The Fund is not intended to be a complete investment program.
Investors in the Fund should understand that the net asset value (“NAV”) of the Fund will fluctuate, which may result in a loss of the principal amount invested. The Fund is a closed-end interval fund, the shares have no history of public trading, nor is it intended that the shares will be listed on a public exchange at this time. No secondary market is expected to develop for the fund’s shares, liquidity for the fund’s shares will be provided only through quarterly repurchase offers for no less than 5% and no more than 25% of the fund’s shares at NAV, and there is no guarantee that an investor will be able to sell all the shares that the investor desires to sell in the repurchase offer. Due to these restrictions, an investor should consider an investment in the fund to be of limited liquidity. The fund is suitable only for investors who can bear the risks associated with the limited liquidity of the fund and should be viewed as a long-term investment. Investing in the fund is speculative and involves a high degree of risk, including the risks associated with leverage.
The Fund’s investment in Private Investment Funds will require it to bear a pro rata share of the vehicles’ expenses, including management and performance fees. Also, once an investment is made in a Private Investment Fund, neither the Advisor nor Sub-Advisor will be able to exercise control over investment decisions made by the Private Investment Fund.
By investing in the Fund, a shareholder will not be deemed to be an investor in any underlying fund and will not have the ability to exercise any rights attributable to an investor in any such underlying fund related to their investment.
Investors should carefully consider the investment objectives, risks, charges and expenses of Griffin Institutional Access Credit Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained by contacting your financial advisor or visiting www.griffincapital.com. The prospectus should be read carefully before investing.