December 11, 2018
Guggenheim Investments Announces the Launch of Guggenheim Credit Income Fund 2019
NEW YORK – Guggenheim announced the launch of Guggenheim Credit Income Fund 2019 (GCIF 2019). GCIF 2019 offers access to opportunities in the U.S. middle market through a strategy typically only accessible to institutional and high net-worth investors.
GCIF 2019 seeks to provide investors with current income, capital preservation, and, to a lesser extent, long-term capital appreciation. The Fund invests primarily in large, privately-negotiated loans to private middle market U.S. companies that have demonstrated competitive and strategic advantages.
“In the current low-to-rising interest rate environment, we believe that private debt offers compelling return opportunities,” said Douglas Mangini, Head of Intermediary Distribution. “GCIF 2019 provides access to this market with the potential to generate attractive levels of income and, through its exposure to floating rate securities, potential protection against some of the damaging effects of rising interest rates.”
GCIF 2019 seeks to provide private debt financing to U.S. middle market companies (defined as companies with annual revenues of $10 million to $1 billion). These are businesses that have demonstrated competitive and strategic advantages within their respective industries, as well as an ability to navigate through a variety of market cycles. However, given the risks and complexity of the investment universe, effectively capturing opportunity in this market requires significant expertise and resources.
“Guggenheim’s private debt expertise spans over 15 years, acting as a lead investor in private deals,” explained Matt Bloom, Senior Managing Director, Head of Research. “The firm has developed a unified platform, which spans the credit spectrum with analysts specialized by industry, offering deep sourcing and underwriting expertise. It’s this comprehensive corporate credit platform that forms the foundation of GCIF 2019.”
For more information, please visit www.guggenheiminvestments.com/credit-income-fund.
About Guggenheim Investments
Guggenheim Investments is the global asset management and investment advisory division of Guggenheim Partners, with more than $207 billion1 in total assets across fixed income, equity, and alternative strategies. We focus on the return and risk needs of insurance companies, corporate and public pension funds, sovereign wealth funds, endowments and foundations, consultants, wealth managers, and high-net-worth investors. Our 300+ investment professionals perform rigorous research to understand market trends and identify undervalued opportunities in areas that are often complex and underfollowed. This approach to investment management has enabled us to deliver innovative strategies providing diversification opportunities and attractive long-term results.
1Assets under management are as of 9.30.2018 and includes leverage of $11.8bn. Guggenheim Investments represents the following affiliated investment management businesses of Guggenheim Partners, LLC: Guggenheim Partners Investment Management, LLC, Security Investors, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Funds Distributors, LLC, Guggenheim Real Estate, LLC, GS GAMMA Advisors, LLC, Guggenheim Partners Europe Limited and Guggenheim Partners India Management.
Guggenheim Credit Income Fund 2019 Investment Risks. The Fund is not suitable for all investors. An investment in the Fund is speculative and involves a high degree of risk. • The private debt strategy discussed herein engages in leveraging, and other speculative investment practices that may increase the risk of investment loss. An investment strategy focused on privately-held companies presents certain challenges, including the lack of available information about the companies. • Investments in bank loans and other floating rate securities involve special types of risks, including credit risk, interest rate risk, liquidity risk and prepayment risk. • The strategy’s exposure to high yield securities (e.g. junk bonds) may subject the fund to greater volatility, and involves significant risks, including credit risk, interest rate risk and liquidity risk. • Some asset backed securities, including mortgage-backed securities, may have structures that make their reaction to interest rates and other factors difficult to predict, making their prices very volatile and they are subject to liquidity risk. • The Fund may invest in derivative instruments, which may be more volatile and less liquid, increasing the risk of loss when compared to traditional securities. • A potential conflict of interest may arise when GPIM or any of its affiliates participate in loan arrangements for which it is providing investment management services, investment banking services or other transaction related services and in which the strategy also invests. • The Fund is highly illiquid and appropriate only as a long-term investment for persons of adequate financial means who do not have a need for liquidity in their investment; thus, it is not suitable if you need access to the money invested in the foreseeable future. • The Fund does not currently intend to list shares on any securities exchange and a secondary market is not expected to develop; as such, you may be unable to sell your shares during a market downturn • The Board of Trustees may, but is not required to, implement a share repurchase program; however, only a limited number of Shares will be eligible for repurchase and any such repurchases will be at net asset value, which may be less than the purchase price. If a share repurchase program is implemented, no more than 10% of the weighted average number of outstanding Shares in any 12-month period are expected to be eligible, until a liquidity event occurs (expected to be on or before December 31, 2026); however, a liquidity event is not guaranteed. • The Fund has a finite term and may liquidate assets at a time that is disadvantageous based on market conditions, which may result in losses. • Distributions may be funded from offering proceeds or borrowings, which may constitute a return of capital and reduce the amount of capital available for investment, and are distributed after payment of the sales load and fees and expenses. • Distributions may also be funded in significant part from the reimbursement of certain expenses, which are subject to repayment to the Advisor, as well as from waivers of certain investment advisory fees, which are not subject to repayment; thus, significant portions of these distributions may not be based on investment performance and such waivers and reimbursements may not continue in the future. • If the Advisor does not agree to reimburse certain expenses, significant portions of distributions may come from offering proceeds or borrowings. • The repayment of any amounts owed to the Advisor may reduce future distributions.
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