Griffin Capital Celebrates Robust Growth with Over $1.0 Billion Raised Year-to-Date for Griffin Institutional Access Real Estate Fund
El Segundo, Calif. (September 12, 2019) – Griffin Capital Company, LLC (“Griffin Capital”), an alternative asset manager, today announced over $1.0 billion in equity raised 2019 year to date for Griffin Institutional Access Real Estate Fund. This growth has helped propel the Griffin Institutional Access Family of funds to over $4 billion in assets under management. The firm attributes this growth to strong and consistent performance across both Griffin Institutional Access Real Estate Fund and Griffin Institutional Access Credit Fund.
“We always strive to provide investors with alternative investments of the highest caliber. Combining innovative investment structures with best-in-class asset management capabilities is paramount to our success. Our performance speaks for itself. Our ability to deliver on our stated investment objectives within a variety of market conditions over the past five years is a testament to our active management capabilities,” said Dr. Randy Anderson, President of Griffin Capital Asset Management Company and Co-Founder of the Institutional Access Funds. “In today’s more volatile investment environment our institutional strategies, which are designed to exhibit lower volatility and low correlation relative to the broader market, have served as a stabilizing force within a mixed asset portfolio. Our perpetual interval fund offerings have broader investment mandates relative to other more traditional strategies. This breadth of mandate allows us to actively manage risk and pivot toward more compelling opportunities throughout the economic cycle. We continue to uncover market opportunities and are proud of our performance to date.”
“At Griffin Capital, it has been our long-standing belief that the utilization of alternative asset classes is essential in building better client portfolios, particularly in the face of currently volatile market conditions,” said Kevin Shields, Chairman and CEO Griffin Capital Company. “We view our exceptional results as powerful proof of concept. We deeply appreciate the confidence our investors have in us and our investment strategies.”
Fund Specific Results1
- Griffin Institutional Access® Real Estate Fund (the “Real Estate Fund”) has, since inception, generated an average annual total return of 7.15 percent as of August 31, 2019. It has achieved these returns with a standard deviation of 2.19 percent, which was less than that of the Bloomberg Barclays Aggregate Bond Index of 3.07 percent during the same period. During the trailing one-year period ending August 31,2019, the Real Estate Fund generated a total return of 6.41 percent.
- Griffin Institutional Access® Credit Fund (the “Credit Fund”) significantly outperformed its benchmark, the S&P/LSTA Leveraged Loan Index, with a year-to-date total return of 7.67 percent as of August 31, 2019. The Credit Fund delivered its return with low volatility.
1. Past performance is not a guarantee of future results. Data source: Morningstar Direct as of August 31, 2019. Performance reflects the reinvestment of dividends and other distributions.
All metrics for Griffin Institutional Access Real Estate Fund are based on load-waived Class A shares (NASDAQ: GIREX) and do not reflect a maximum sales charge of 5.75% for Class A shares. If the data reflected the deduction of such fees, the performance would be lower.
All metrics for Griffin Institutional Access Credit Fund are based on Class I shares (NASDAQ: CRDIX). Investors of the Class I shares do not pay a front-end sales charge/load.
About Griffin Institutional Access Real Estate Fund
Griffin Institutional Access Real Estate Fund (the “Real Estate Fund,” tickers: GIREX, GCREX, GRIFX, GLREX, GMREX), a closed-end, interval fund registered under the Investment Company Act of 1940, is an actively-managed portfolio of private real estate funds and public real estate securities, diversified by property type and geography, offering daily pricing and periodic liquidity at net asset value. The Real Estate Fund will make quarterly offers to repurchase between five percent and 25 percent of its outstanding shares at net asset value. The Real Estate Fund began reporting on NASDAQ on June 30, 2014 with an initial share price of $25.00 and reported a share price of $27.56 for Class A, $26.74 for Class C, $27.85 for Class I, $27.42 for Class L, and $27.18 for Class M as of September 11, 2019. The adviser of the Real Estate Fund is Griffin Capital Advisor, LLC, a majority owned subsidiary of Griffin Capital Company, LLC.
About Griffin Institutional Access Credit Fund
Griffin Institutional Access Credit Fund (the “Credit Fund,” tickers: CRDTX, CGCCX, CRDFX, CRDIX, CRDLX), a closed-end, interval fund registered under the Investment Company Act of 1940, is an actively managed, diversified portfolio of credit instruments, which may include bank loans, high-yield bonds, structured credit, middle-market direct lending, and non-performing loans. The Credit Fund offers daily pricing and periodic liquidity at net asset value, and the Credit Fund will make quarterly offers to repurchase between five percent and 25 percent of its outstanding shares at net asset value. The Credit Fund began reporting on NASDAQ on April 3, 2017 with an initial share price of $25.00 and reported a share price of $24.69 for Class A, $24.69 for Class C, $24.69, for Class I, $24.68 for Class L, and $24.69 for Class F as of September 11, 2019. Class F shares are not available to the general public. The Credit Fund’s investment adviser is Griffin Capital Credit Advisor, LLC (the “Adviser”), an SEC registered investment adviser under the Investment Advisers Act of 1940, as amended (the “Advisers Act”). The Adviser is a majority owned subsidiary of Griffin Capital Company, LLC. The Adviser has engaged BCSF Advisors, LP, an SEC registered investment adviser under the Advisers Act, to provide ongoing research, opinions and recommendations regarding the Credit Fund’s investment portfolio. BCSF is an affiliate of Bain Capital Credit, LP.
About Griffin Capital Company, LLC
Founded in 1995, Griffin Capital is an alternative investment asset manager headquartered in El Segundo, California with offices in Irvine, California, Phoenix, Arizona, and Greenwich, Connecticut. The privately held firm is led by a seasoned team of senior executives each with more than two decades of investment and real estate experience and who collectively have executed in excess of $21 billion in transactions.
Griffin Capital’s alternative investment solutions include three groups of complementary products: actively managed interval funds in the company’s Institutional Access® fund family, non-listed real estate investment trusts (REITs) and tax-advantaged private real estate strategies. The firm’s investment strategies include diversified core real estate and global corporate credit securities, as well as direct real estate ownership in sector-specific portfolios focused on net leased essential office and industrial assets, clinical healthcare properties, and multifamily real estate.
These solutions include: Griffin Institutional Access® Credit Fund, Griffin Institutional Access® Real Estate Fund, Griffin Capital Essential Asset® REIT featuring NextNAV™, Griffin Institutional Property Exchange DSTs, and a Qualified Opportunity Zone fund. Griffin Capital Securities, LLC, Member FINRA/SIPC, is the dealer manager and/or exclusive wholesale marketing agent for its REITs, Interval Funds and private offerings sponsored and/or co-sponsored by Griffin Capital Company, LLC. Additional information is available at: www.griffincapital.com.
IMPORTANT DISCLOSURES
This is neither an offer to sell nor a solicitation to purchase any security. Investors should carefully consider the investment objectives, risks, charges and expenses of Griffin Institutional Access Real Estate Fund and Griffin Institutional Access Credit Fund (the “Funds”). This and other important information about the Funds is contained in the specific Fund’s prospectus, which can be obtained by visiting www.griffincapital.com. Please read the prospectus carefully before investing.
Griffin Institutional Access Real Estate Fund’s inception date was 6/30/2014. As of 8/31/2019, Griffin Institutional Access Real Estate Fund’s load-waived Class A shares (NASDAQ: GIREX) returned 7.15% (annualized) since inception, which is 5.93% when reflecting a maximum sales load/charge. Performance reflects the reinvestment of dividends and distributions. Due to financial statement adjustments, returns may differ. Performance data quoted represents past performance. Past performance is no guarantee of future results and investment returns and principal value of Griffin Institutional Access Real Estate Fund will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. Visit www.griffincapital.com. for current performance. As per Griffin Institutional Access Real Estate Fund’s prospectus dated July 2, 2019, the total expense ratio after fee waiver, reimbursement and recoupment is 1.97% for Class A, 2.72% for Class C, 1.72% for Class I, 2.22% for Class L and 2.47% for Class M. The Adviser and Griffin Institutional Access Real Estate Fund have entered into an expense limitation agreement under which the Adviser has contractually agreed to waive its fees and to pay or absorb the ordinary annual operating expenses of Griffin Institutional Access Real Estate Fund (including offering expenses, but excluding taxes, interest, brokerage commissions, acquired fund fees and expenses and extraordinary expenses) to the extent that they exceed 1.91% for Class A shares, 2.66% for Class C shares, 1.66% for Class I shares, 2.16% for Class L shares, and 2.41% for Class M shares until February 1, 2020. Griffin Institutional Access Real Estate Fund’s return does not reflect the deduction of all fees and if Griffin Institutional Access Real Estate Fund’s return reflected the deduction of such fees, the performance would be lower. The maximum sales charge is 5.75% for Class A shares and 4.25% for Class L shares. Class C shareholders may be subject to a contingent deferred sales charge equal to 1.00% of the original purchase price of Class C shares redeemed during the first 365 days after their purchase.
Griffin Institutional Access Credit Fund’s inception date was 4/3/2017. As of 8/31/2019, Griffin Institutional Access Credit Fund’s Class I shares (NASDAQ: CRDIX) returned 5.36% (annualized) since inception. Per Griffin Institutional Access Credit Fund’s prospectus dated April 30, 2019, the total gross expense ratio is 3.33% for Class A shares, 4.08% for Class C shares, 3.04% for Class F shares, 3.08% for Class I shares, and 3.64% for Class L shares. Performance data quoted represents past performance. Past performance is no guarantee of future results and investment returns and principal value of Griffin Institutional Access Credit Fund will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. Visit www.griffincapital.com for current performance. The Adviser and Griffin Institutional Access Credit Fund have entered into an expense limitation agreement until at least April 30, 2020 under which the Adviser has contractually agreed to waive its fees and to pay or absorb the ordinary annual operating expenses of Griffin Institutional Access Credit Fund (including offering expenses, but excluding taxes, interest, brokerage commissions, acquired fund fees and expenses and extraordinary expenses) to the extent that they exceed 2.60% for Class A shares, 3.35% for Class C shares, 2.35% for Class I shares, and 2.85% for Class L shares, subject to possible recoupment from Griffin Institutional Access Credit Fund in future years. Separate of the expense limitation agreement, commencing on August 26, 2019, the Adviser voluntarily absorbs Griffin Institutional Access Credit Fund expenses in excess of 1.25% and will continue to bear such expenses on a going forward basis in its discretion and is under no obligation to continue to do so for any specified period of time. Prior to August 26, 2019 and since the commencement of the operations of Griffin Institutional Access Credit Fund, the Adviser has borne all of the operating expenses of Griffin Institutional Access Credit Fund and waived its entire management fee. Without the waiver the expenses would have been higher. Fund returns would have been lower had expenses, such as management fees, not been waived during the period. Griffin Institutional Access Credit Fund return does not reflect the deduction of all fees and if Griffin Institutional Access Credit Fund return reflected the deduction of such fees, the performance would be lower. The maximum sales charge is 5.75% for Class A shares and 4.25% for Class L shares. Class C shareholders may be subject to a contingent deferred sales charge equal to 1.00% of the original purchase price of Class C shares redeemed during the first 365 days after their purchase.
The Funds are closed-end interval funds, 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 Funds’ shares. Limited liquidity is provided to shareholders only through the Funds’ quarterly repurchase offers for no less than 5% and no more than 25% of the Funds’ shares outstanding at net asset value. 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.
The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. Due to these restrictions, an investor should consider an investment in the Funds to be of limited liquidity. The Funds are suitable only for investors who can bear the risks associated with the limited liquidity of the Funds and should be viewed as a long-term investment. Investing in the Funds is speculative and involves a high degree of risk, including the risks associated with leverage and the risk of a substantial loss of investment. There is no guarantee that the investment strategies will work under all market conditions.
This material has been distributed for informational purposes only. The views and information discussed are as of the date of publication, are subject to change without notification of any kind, and may not reflect the writer’s current views. The views expressed represent an assessment of market conditions at a specific point in time and should not be relied upon as investment advice regarding a particular investment or markets in general. Such information does not constitute a recommendation to buy or sell specific securities or investment vehicles. It should not be assumed that any investment will be profitable or will equal the performance of the fund(s) or any securities or any sectors mentioned herein. The subject matter contained herein has been derived from several sources believed to be reliable and accurate, but not guaranteed, at the time of compilation. Griffin Capital Company, LLC and its subsidiaries do not accept any liability for losses either direct or consequential caused by the use of this information.
Annualized Return is calculated by annualizing cumulative return (i.e., adjusting it for a period of one year). Annualized return includes capital appreciation and assumes a reinvestment of dividends and distributions.
The Bloomberg Barclays U.S. Aggregate Bond Index measures the performance of the U.S. investment grade bond market. The S&P 500 is an index based on market cap of the 500 largest companies having stock listed on the New York Stock Exchange (NYSE) or NASDAQ. You cannot invest directly in an index. Index performance does not represent actual Fund or portfolio performance.
The S&P/LSTA Leveraged Loan Index (LSTA) is a daily total return index that uses mark-to-market pricing to calculate market value change. It tracks, on a real-time basis, the current outstanding balance and spread over the London Interbank Offered Rate (LIBOR) for fully funded term loans. The facilities included in the LSTA represent a broad cross section of leveraged loans syndicated in the United States, including dollar-denominated loans to overseas issuers.
Standard Deviation measures the average deviations of a return series from its mean and is often used as a measure of volatility/risk. A large standard deviation implies that there have been large swings in the return series of the manager.
