Key Takeaways
- • Destra Capital announced a strategic partnership with RBC Global Asset Management (U.S.) Inc. to market and distribute the new RBC BlueBay Enhanced Income Fund to intermediary investors.
- • The RBC BlueBay Enhanced Income Fund will primarily invest in equity and junior debt tranches of collateralized loan obligations (CLOs), with flexibility to invest in other structured credit securities.
- • The fund is managed by the RBC BlueBay Securitized Credit team, with offices in the US and the UK.
- • This is the second alternative credit vehicle the two firms have partnered on, following the 2018 launch of the BlueBay Destra International Event-Driven Credit Fund.
- • RBC GAM manages more than $570 billion USD in assets, according to the company's boilerplate.
Summary
Destra Capital, a Bozeman, Montana-based specialized asset management firm, announced a strategic partnership with RBC Global Asset Management (U.S.) Inc. (RBC GAM-U.S.) to market and distribute the new RBC BlueBay Enhanced Income Fund, according to a Business Wire release. The collaboration pairs RBC GAM-U.S.'s credit strategy capabilities with Destra's alternative distribution network, with both firms aiming to offer differentiated alternative investment solutions to intermediary investors and address demand for income-oriented alternatives.
The fund will primarily invest in equity and junior debt tranches of collateralized loan obligations (CLOs), with the flexibility to invest in other structured credit securities. It will be managed by the RBC BlueBay Securitized Credit team, which has offices in both the United States and the United Kingdom.
Dominic Martellaro, CEO of Destra Capital, said the firm was "thrilled to expand our partnership" with RBC GAM-U.S., describing it as a globally respected manager in alternative credit investing. Donald Sanya, CEO of RBC Global Asset Management-U.S., said the partnership would expand access to high-quality alternative investment opportunities for financial advisors and their clients seeking diversified income strategies.
The release notes this is the second alternative credit vehicle the two firms have partnered on. In 2018, Destra launched the BlueBay Destra International Event-Driven Credit Fund, with Destra Capital Advisors LLC as adviser and RBC Global Asset Management (UK) Limited as sub-adviser. That fund focuses on stressed, distressed and other global credit opportunities in developed markets and has been in the market for over eight years.
The RBC BlueBay Enhanced Income Fund is a non-diversified, closed-end management investment company with a limited operating history. Its shares are not listed on any securities exchange, and the fund intends to provide liquidity through quarterly offers to repurchase at least 5% of shares. The offering materials warn of illiquidity, the possibility that distributions may be funded from offering proceeds or borrowings, and substantial risks including default risk associated with CLO equity and junior debt. Quasar Distributors, LLC is the fund's distributor, and Destra Capital Investments LLC acts as a wholesale promoter to broker-dealers and investment advisers. RBC GAM manages more than $570 billion USD in assets with approximately 1,600 employees.
The fund will primarily invest in equity and junior debt tranches of collateralized loan obligations (CLOs), with the flexibility to invest in other structured credit securities. It will be managed by the RBC BlueBay Securitized Credit team, which has offices in both the United States and the United Kingdom.
Dominic Martellaro, CEO of Destra Capital, said the firm was "thrilled to expand our partnership" with RBC GAM-U.S., describing it as a globally respected manager in alternative credit investing. Donald Sanya, CEO of RBC Global Asset Management-U.S., said the partnership would expand access to high-quality alternative investment opportunities for financial advisors and their clients seeking diversified income strategies.
The release notes this is the second alternative credit vehicle the two firms have partnered on. In 2018, Destra launched the BlueBay Destra International Event-Driven Credit Fund, with Destra Capital Advisors LLC as adviser and RBC Global Asset Management (UK) Limited as sub-adviser. That fund focuses on stressed, distressed and other global credit opportunities in developed markets and has been in the market for over eight years.
The RBC BlueBay Enhanced Income Fund is a non-diversified, closed-end management investment company with a limited operating history. Its shares are not listed on any securities exchange, and the fund intends to provide liquidity through quarterly offers to repurchase at least 5% of shares. The offering materials warn of illiquidity, the possibility that distributions may be funded from offering proceeds or borrowings, and substantial risks including default risk associated with CLO equity and junior debt. Quasar Distributors, LLC is the fund's distributor, and Destra Capital Investments LLC acts as a wholesale promoter to broker-dealers and investment advisers. RBC GAM manages more than $570 billion USD in assets with approximately 1,600 employees.
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