NEW YORK, June 6, 2018 /PRNewswire/
-- OppenheimerFunds and The Carlyle Group announced the launch
of OFI Carlyle Private Credit Fund, the first strategy made
available through the firms' joint venture to provide global
private credit opportunities for high net worth (HNW) investors and
advisors.
Designed for long-term investors seeking current income, the
strategy opportunistically allocates assets across a range of
credit strategies including direct lending, opportunistic credit,
structured credit and liquid credit to companies around the
world.
"We are thrilled to deliver a diversified income solution
for investors who want access to private markets for their
portfolios," said Kamal Bhatia,
Co-Head of the JV and Head of Investment Solutions for
OppenheimerFunds. "By offering true institutional private
credit capabilities through our HNW partner platform, we are able
to actively allocate and manage client assets while providing a
periodic income stream that would be difficult to get from
traditional public market investing."
The firms' JV, announced in the fourth quarter of
2017, brought together Carlyle's core global credit expertise
with OppenheimerFunds' extensive product structuring and
distribution capabilities to build an alternative credit platform
for HNW clients and advisors. The platform aims to deliver
long-term income solutions generally available only to
institutional and ultra high net worth investors.
"We are excited to partner with OppenheimerFunds to
provide high net worth investors with access to the spectrum of
credit investments that experienced institutional investors already
have," said Mark Jenkins, Head of
Global Credit for The Carlyle Group and Co-Head of the
JV.
About OppenheimerFunds
OppenheimerFunds, Inc., a leader in global asset
management, is dedicated to providing solutions for its partners
and end investors. OppenheimerFunds, including its subsidiaries,
manages more than $250 billion in
assets for over 13 million shareholder accounts, including
sub-accounts, as of May 31,
2018.
Founded in 1959, OppenheimerFunds is an asset manager with
a history of providing innovative strategies to its investors. The
firm's 16 investment management teams specialize in equity, fixed
income, alternative, multi-asset, and factor and
revenue-weighted-ETF strategies, including ESG as a signatory of
the UN PRI. OppenheimerFunds and its subsidiaries offer a broad
array of products and services to clients, who range from pensions
and endowments to financial advisors and individual investors.
OppenheimerFunds and certain of its subsidiaries provide advisory
services to the Oppenheimer family of funds, and OFI Global Asset
Management offers solutions to institutions. The firm is also
active through its Philanthropy & Community initiative: 10,000
Kids by 2020, reaching children with introductions to math literacy
programs.
Web: oppenheimerfunds.com
Tweets: twitter.com/OppFunds
Podcasts:
oppenheimerfunds.com/advisors/podcasts
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative
asset manager with $201 billion of
assets under management across 324 investment vehicles as of
March 31, 2018. Carlyle's purpose is
to invest wisely and create value on behalf of its investors, many
of whom are public pensions. Carlyle invests across four segments –
Corporate Private Equity, Real Assets, Global Credit and Investment
Solutions – in Africa,
Asia, Australia, Europe, the Middle
East, North America and
South America. Carlyle has
expertise in various industries, including: aerospace, defense
& government services, consumer & retail, energy, financial
services, healthcare, industrial, real estate, technology &
business services, telecommunications & media and
transportation. The Carlyle Group employs more than 1,575 people in
31 offices across six continents.
Shares of OFI Carlyle Private Credit Fund (the Fund)
are not deposits or obligations of any bank, are not guaranteed by
any bank, are not insured by the FDIC or any other agency, and
involve investment risks, including the possible loss of the
principal amount invested.
INVESTING IN THE FUND INVOLVES A HIGH DEGREE OF RISK, INCLUDING
THE RISK THAT YOU MAY RECEIVE LITTLE OR NO RETURN ON YOUR
INVESTMENT OR THAT YOU MAY LOSE PART OR ALL OF YOUR INVESTMENT. THE
FUND WILL NOT BE LISTED OR TRADED ON ANY STOCK EXCHANGE. THIS IS A
CLOSED-END INTERVAL FUND AND IS NOT INTENDED TO BE A TYPICAL TRADED
INVESTMENT. LIMITED LIQUIDITY IS PROVIDED TO SHAREHOLDERS ONLY
THROUGH THE FUND'S QUARTERLY REPURCHASE OFFERS FOR NO LESS THAN 5%
OF THE FUND'S SHARES OUTSTANDING AT NET ASSET VALUE. REGARDLESS OF
HOW THE FUND PERFORMS, THERE IS NO GUARANTEE THAT SHAREHOLDERS WILL
BE ABLE TO SELL ALL OF THE SHARES THEY DESIRE IN A QUARTERLY
REPURCHASE OFFER.
There currently is no secondary market for the Fund's
shares and the Fund expects that no secondary market will develop.
Shares of the Fund will not be listed on any securities exchange,
which makes them inherently illiquid. Limited liquidity is provided
to shareholders only through the Fund's quarterly repurchase
offers, regardless of how the Fund performs.
There is no assurance that quarterly distributions paid by
the Fund will be maintained at the targeted level or that dividends
will be paid at all. The Fund's distributions may be funded from
unlimited amounts of offering proceeds or borrowings, which may
constitute a return of capital and reduce the amount of capital
available to the Fund for investment. A return of capital to
shareholders is a return of a portion of their original investment
in the Fund, thereby reducing the tax basis of their
investment.
Investing involves risk. Investment return and principal
value of an investment will fluctuate, and an investor's shares,
when redeemed, may be worth more or less than their original cost.
Fixed income investing entails credit and interest rate risks. When
interest rates rise, bond prices generally fall, and the Fund's
share prices can fall. Below-investment-grade ("high yield" or
"junk") bonds are more at risk of default and are subject to
liquidity risk. Credit instruments that are rated below investment
grade (commonly referred to as "high yield" securities or "junk
bonds") are regarded as having predominantly speculative
characteristics with respect to the issuer's capacity to pay
interest and repay principal. Collateralized loan obligations
(CLO's) are debt instruments but also carry additional risks
related to the complexity and leverage inherent in the CLO
structure. Because of the risks associated with investing in high
yield securities, an investment in the Fund should be considered
speculative. Some of the credit instruments will have no credit
rating at all. The Fund may invest in loans and the value of those
loans may be detrimentally affected to the extent a borrower
defaults on its obligations. Senior loans are typically lower-rated
and may be illiquid investments, which may not have a ready market.
Investments in lesser-known and middle-market companies may be more
vulnerable than larger, more established organizations. Distressed
credit investments are inherently speculative and are subject to a
high degree of risk. Leverage (borrowing) involves transaction and
interest costs on amounts borrowed, which may reduce performance.
Foreign investments may be volatile and involve additional expenses
and special risks, including currency fluctuations, foreign taxes,
regulatory and geopolitical risks. The Fund is classified as
"non-diversified" and may invest a greater portion of its assets in
the securities of a single issuer.
The Fund has a limited operating history as it commenced
operations on June 4,
2018.
Investors should carefully consider the investment
objective, risks, charges and expenses of the Fund before
investing. This and other important information about the Fund is
in the prospectus, which can be obtained by contacting your
financial advisor or visiting
www.ofiglobalcarlyle.com. The prospectus should
be read carefully before investing.
The Fund is distributed by OppenheimerFunds Distributor, Inc.
225 Liberty Street New York, NY
10281.
View original content with
multimedia:http://www.prnewswire.com/news-releases/oppenheimerfunds-and-the-carlyle-group-launch-private-credit-fund-300660927.html
SOURCE OppenheimerFunds