Former Nontraded Interval Fund Destra Multi-Alternative Launches Buyback as 2027 Term Deadline Nears
Destra Multi-Alternative Fund (NYSE: DMA) has authorized an open-market share repurchase program, raised its monthly distribution to $0.1150 per share, and entered the measurement period that will help determine whether the fund continues past its scheduled March 31, 2027, termination date, the fund said Oct. 12. The former nontraded interval fund still holds more than half its portfolio in private companies and alternative investment funds, including nontraded real estate investment trusts.
DMA’s board said the moves are intended to support the fund’s market price and narrow the gap between where its shares trade and their net asset value.
“These actions demonstrate the board’s commitment to delivering value to shareholders while maintaining disciplined oversight of the fund’s capital allocation and term structure,” said Robert A. Watson, president of the fund. “We believe the share repurchase program, enhanced distributions and continuation framework collectively position the fund to maximize long-term shareholder outcomes.”
From Nontraded to Listed
Before its listing, the fund operated for roughly a decade as a nontraded interval fund. Destra Capital Advisors acquired it in 2018, when it was known as the Multi-Strategy Growth & Income Fund, and renamed it Destra Multi-Alternative Fund. Its shares began trading on the New York Stock Exchange on Jan. 13, 2022, when the fund redesignated its Class A, C, and T shares into a single class of common shares.
The listing swapped the periodic repurchase offers typical of interval funds for daily trading on the exchange, at a market price that can diverge from NAV. Validus Growth Investors LLC, doing business as Validex Global Investing, serves as sub-adviser.
Buyback and Distribution
Under the repurchase program, the fund may buy back common shares on the open market when they trade at a discount to NAV, subject to market conditions and regulatory requirements. Repurchases are expected to begin after an initial 30-day cooling-off period, with Clear Street serving as executing broker. The release did not specify a maximum number of shares or dollar amount for the program.
The new monthly rate of $0.1150 per share applies to distributions payable Oct. 30, Nov. 30, and Dec. 31. It replaces the $0.1125 monthly rate the board had approved through September 2026.
The increase is the fourth since the fund adopted a monthly distribution policy in March 2025. The fund paid $0.0725 per share for April and May 2025, $0.0825 for June through September 2025, and $0.0925 for October and November 2025 before moving to $0.1125 in December 2025. The new rate is roughly 59% above the April 2025 level.
Distributions have run well ahead of net investment income. For the fiscal year ended March 31, 2026, the fund paid $9.9 million in distributions against $3.2 million of net investment income and posted a $1.5 million net decrease in net assets from operations. The fund said distributions were funded by current income, realized gains, and realizations from its illiquid holdings. Net assets fell to $79.5 million at fiscal year-end from $91 million a year earlier.
The fund said the October through December distributions will be paid from a combination of net investment income and other sources, and that the final tax character, including any return of capital, will not be known until after the close of its fiscal year.
As of March 31, 2026, the fund’s NAV was $8.87 per share and its shares closed at $8.11, an 8.57% discount. NAV-basis total return for the fiscal year was -2.54%, while market-price total return was 8.65%, which management attributed to a narrowing discount.
Term Clock
Under its governing documents, the fund is scheduled to dissolve at the close of business on March 31, 2027, unless one of several paths applies. The board may extend the term once by up to one year without a shareholder vote. The fund also may qualify automatically for a three-year continuation if it meets specified performance criteria during the measurement period it has now entered. The fund did not detail those criteria.
The fund describes a third path: if the fund completes an “eligible tender offer” to buy up to 100% of outstanding shares at NAV within 12 months before the termination date, the board may amend the declaration of trust to eliminate the term, making the fund perpetual without a shareholder vote. The Oct. 12 release did not mention a tender offer.
The board said it will evaluate the performance measures during the measurement period and communicate any determination to shareholders, adding that there can be no assurance the fund will satisfy the continuation criteria or that the board will extend the term.
The fund’s nontraded holdings are central to the term question. As of March 31, 2026, private companies accounted for 32.4% of net assets and alternative investment funds, including nontraded REITs and private funds, accounted for 25.9%. Those positions cannot be sold on demand, and the fund has warned that an extension, eligible tender offer, conversion to perpetual status, or wind-up may require sales of portfolio holdings at disadvantageous times or prices.
In December 2025, shareholders approved eliminating the fund’s fundamental policy requiring it to concentrate in real estate, with about 79% of votes cast in favor, according to the fund. At the time, the sub-adviser said it intended to shift a meaningful portion of the real estate exposure into liquid hedged strategies.
Saba Capital Management, an activist investor in discounted closed-end funds, reported in September 2025 that it beneficially owned 24.94% of the fund’s common shares. Matisse Capital reported a 5.1% stake as of June 30, 2026.
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