Medley Launches $1 Billion Interval Fund

Medley Management (NYSE: MDLY) has launched the Sierra Total Return Fund (NASDAQ: SRNTX), a $1 billion interval fund, and is offering Class T shares to individual investors.

The fund intends to build a portfolio of debt securities and fixed-income related equity securities, utilizing public and private credit, public investment opportunities, private investment opportunities and pooled credit.

“The fund provides individuals access to invest in public and private securities through an institutional-quality credit strategy,” said Seth Taube, the fund’s chief executive officer. “Medley is pleased to announce that our newest Sierra Fund is now available to investors, offering what we believe to be an attractive alternative in today’s fixed income market.”

As previously reported by The DI Wire, Class T shares will be offered for $25.51 each and include a 2 percent front-end load, comprised of a 0.75 percent dealer allowance fee and a 1.25 percent dealer manager fee. Class T shares are charged a 0.75 percent annual distribution fee that is capped at 6.25 percent. The minimum initial for class T shares is $2,500 for regular accounts and retirement plan accounts.

To provide liquidity to shareholders, the fund intends to make quarterly offers to repurchase its outstanding shares at net asset value.

Sierra Total Return Fund is externally managed by registered investment adviser STRF Advisors LLC. According to a filing with the Securities and Exchange Commission, the adviser purchased 4,000 Class T shares for $25.00 each in August 2016.

Medley is an alternative asset management firm with $5.5 billion of assets under management in two business development companies, Medley Capital Corporation (NYSE:MCC) and Sierra Income Corporation, as well as private investment vehicles.

For more on the SC Distributors platform of products, visit their directory page here.