Lincoln Financial Teams Up with Bain Capital for Debut Interval Fund Filing
Lincoln Bain Capital Total Credit Fund has filed its initial registration statement with the U.S. Securities and Exchange Commission. The fund – which seeks high risk-adjusted returns across various market cycles with a focus on current income – is registering as an unlisted closed-end fund and represents Lincoln Financial’s first interval fund.
The adviser, Lincoln Financial Investments Corporation, is an insurance company that provides annuities, group benefits, and retirement plans. The sub-adviser, Bain Capital, is a global private investment firm with $185 billion in assets under management as of Sept. 30, 2024.
The new fund seeks to achieve its investment objective by primarily investing in a globally varied portfolio of liquid and illiquid credit investments. These investments may include, among other things: directly originated loans, secured and unsecured floating and fixed rate syndicated loans and securities, corporate bonds (both investment grade and below investment grade), debt and equity of collateralized loan obligations, and other credit focused vehicles, asset-backed securities, real estate loans, asset-based lending, specialty finance, opportunistic credit, other credit investments, equity co-investments, credit-backed derivatives, exchange-traded funds, and cash and cash equivalents.
Under normal market conditions, the fund intends to allocate at least 80% of its portfolio to credit investments.
As sub-adviser Bain Capital aims to leverage its expertise across various credit and income-focused investment strategies to identify and capitalize on opportunities throughout the global credit spectrum. By targeting both liquid and illiquid investments, the fund seeks to provide investors with access to a wide range of potential returns.
To provide shareholders with limited liquidity, the fund intends to conduct quarterly repurchase offers for between 5% and 25% of the fund’s outstanding shares at net asset value. Under normal market conditions, the fund currently intends to repurchase 5% of its outstanding shares at NAV on a quarterly basis.
The interval fund is offering three share classes: Class A, Class D, and Class I shares.
The minimum initial investment for Class A shares is $2,500 for all accounts. For Class D shares, the minimum initial investment is $250,000 for all accounts. Finally for Class I shares, the minimum initial investment is $1 million for all accounts.
The majority of fees of the interval fund have yet to be disclosed. According to the filing, the fund distributor is Lincoln Financial Distributors Inc., and the custodian is State Street Bank and Trust Company.
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