JPMorgan to Launch Infrastructure, Real Estate Interval Fund With GCM Grosvenor

J.P. Morgan Investment Management Inc. filed a registration statement, or Form N-2, with the U.S. Securities and Exchange Commission for a new nontraded interval fund that will invest across infrastructure, real estate, and other resource-based assets, with GCM Grosvenor L.P. serving as sub-adviser.

The fund, JPMorgan Real Assets Dedicated Fund, is registered under the Investment Company Act of 1940 as a non-diversified, closed-end management investment company. It will operate as an interval fund, offering semiannual repurchase offers of 5% to 25% of outstanding shares, with the fund currently expecting to offer 5% per period.

J.P. Morgan Investment Management will serve as adviser. GCM Grosvenor L.P. will serve as sub-adviser, managing a portion of the fund’s assets independently; the adviser retains authority to adjust or eliminate GCM Grosvenor’s allocation based on its ongoing evaluation, according to the filing.

The fund will target at least 80% of net assets in what the filing calls real asset investments, spanning infrastructure and infrastructure-related businesses, real estate and real estate-related assets, and other tangible or resource-based asset classes, including agriculture, timberland, and farmland. Exposure will come through primary fund investments, co-investments, secondary-market acquisitions, and debt and preferred equity positions, according to the filing.

The fund will offer three share classes with different minimums and ongoing costs. Class S and Class A shares each carry a $25,000 minimum investment, with ongoing distribution fees of 0.75% and 0.5%, respectively; Class A is the only class subject to an upfront sales load. Class I shares carry no distribution fee and a $1 million minimum, reduced to $100,000 for registered investment advisers and fee-based accounts.

The fund’s fee table, modeled on an assumed $500 million in net assets, sets the advisory fee at 1% of net assets across all three share classes. Distribution fees are set at 0.75% for Class S shares and 0.5% for Class A shares, with no distribution fee on Class I shares. Other expenses and acquired fund fees and expenses – the latter reflecting costs passed through from the underlying portfolio funds – have yet to be finalized, as has the resulting total annual expenses figure for each class. Class A shares carry a maximum sales load of 2.25% that scales down on larger purchases and disappears entirely on purchases of more than $250,000, though a 1% contingent deferred sales charge applies on Class A redemptions within 18 months of purchase. All three classes carry a maximum early repurchase fee of 2% on shares tendered before the standard holding period.

The registration news adds JPMorgan to a group of large asset managers that have entered the real assets and infrastructure segment of the nontraded interval fund market, a segment where sponsors have sought diversification beyond private credit and traditional real estate.

The registration statement is not yet effective. J.P. Morgan Institutional Investments Inc. will act as principal underwriter on a reasonable best-efforts basis.

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