Axxes Launches Opportunistic Credit Fund With ‘Flexible Investment Mandate’
Axxes Capital, a private markets investment management firm founded by private equity veteran and sports investor Joseph DaGrosa Jr., announced the official launch of the Axxes Opportunistic Credit Fund, which is now accepting investments.
The interval fund, previously registered and declared effective last October, allocates capital across opportunistic credit – including stressed/distressed, special situations, structured credit, and hard assets. The company said the fund’s flexible investment mandate ensures the fund can adapt as markets evolve.
The fund is sub-advised by Greywolf Capital Management LP, a $3.3 billion credit-focused registered investment adviser with a track record of navigating complex markets.
“This launch marks an important step in our mission to make institutional-quality private market strategies accessible to a broader set of investors,” said DaGrosa, founder, chairman, and chief executive officer of Axxes Capital.
The fund is engaging in a continuous offering of Class A, C, and I shares at net asset value, and Ultimus Fund Distributors LLC is acting as the distributor of the shares on a best-efforts basis. The initial NAV per share for all share classes is $10. According to the fund’s prospectus, the maximum front-end sales load is 5.75% of the amount invested for Class A shares, while Class C and I shares are not subject to front-end sales loads.
“The Axxes Opportunistic Credit Fund was specifically designed for wealth advisers and their clients who want access to opportunistic credit without the complexities of traditional private fund structures. We’re proud to bring an efficient, transparent, and investor-friendly solution to market at a time when demand for differentiated income strategies is accelerating,” added DaGrosa.
Seeking to deliver risk-adjusted returns, while mitigating downside risk, the fund has a flexible and actively managed portfolio. The structure offers low investment minimums of $25,000, no capital calls, simplified 1099 tax reporting, liquidity through quarterly redemptions of 5% of the fund’s NAV, and daily NAV investing.
“We’re pleased to partner with Axxes Capital to deliver our institutional credit expertise through a structure that meets the needs of today’s wealth adviser,” said Jon Savitz, CEO of Greywolf Capital Management. “We believe the current environment continues to present compelling dislocated and event-driven credit opportunities. Our approach, developed over two decades, is grounded in deep credit research and disciplined risk management. Through this partnership, we can now bring our capabilities to a wider audience seeking durable, less correlated returns.”
In terms of fees, according to the fund, it pays the adviser a management fee at an annual rate of 1.5%, payable monthly in arrears and accrued daily based upon the fund’s average daily net assets. The incentive fee is calculated and payable quarterly in arrears in an amount equal to 3.75% of the fund’s “pre-incentive fee net investment income” for the immediately preceding quarter, and is subject to a hurdle rate, expressed as a rate of return on the fund’s “adjusted capital,” equal to 1.5% per quarter (or an annualized hurdle rate of 6%), subject to a “catch-up” feature, which allows the adviser to recover foregone incentive fees that were previously limited by the hurdle rate.
Launched in 2021, Axxes Capital is a private markets investment management firm committed to delivering innovative, institutionally backed investment solutions to wealth advisers and their clients. The firm partners with independent, established asset managers to offer retail investors access to private equity, credit, structured finance, and alternative strategies, all through adviser-friendly vehicles.
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