CAZ Investments Launches GP Stakes Growth Fund, Its Second Interval Fund

CAZ Investments has launched the CAZ GP Stakes Growth Fund, a registered interval fund that buys minority ownership stakes in private asset managers, known as general partner, or GP, stakes. It is the Houston-based firm’s second fund built around that strategy.

The new fund seeks long-term capital appreciation. It sits alongside the firm’s first GP stakes interval fund, which AltsWire covered at its launch in February and which was renamed the CAZ GP Stakes Income Fund in September. That fund, which reported $176.2 million in net assets as of June 30, targets capital appreciation and current income. CAZ is marketing the two together as the CAZ GP Stakes Fund Series.

The Income Fund is designed for investors who prioritize income, while the Growth Fund is built for those focused on long-term compounding, said Christopher Zook, founder and chief investment officer of CAZ Investments.

Under normal circumstances, the Growth Fund will invest at least 80% of its net assets in GP stakes with favorable growth prospects, according to CAZ. Those holdings may include stakes in managers of private equity, private credit, real estate, infrastructure, and venture capital.

The fund offers five share classes. Class A, C, and R shares require a $2,500 minimum, Class E shares $100,000, and Class I shares $3 million. Neither fund requires investors to be accredited. The Growth Fund charges a 1.5% management fee and no performance fee at the fund level. Total annual operating expenses range from 2.4% to 3.6% depending on share class, after a fee waiver on Class E shares. Class A shares carry a sales load of up to 3%. Some of the underlying GP stakes charge their own management fees and carried interest, which investors bear indirectly.

The fund expects to offer to repurchase 5% of its outstanding shares each quarter. Shares repurchased within the first year carry a 2% early repurchase fee. Ultimus Fund Distributors is the distributor.

CAZ said it has allocated more than $8 billion to GP stakes over the past 10 years and holds minority stakes in more than 120 private asset managers. The firm, founded in 2001, said it has more than $12 billion in assets deployed.

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