AAM to continue its strategic expansion into alternatives with private credit offering
MONUMENT, Colo., Oct. 31, 2023 /PRNewswire/ — Advisors Asset Management (AAM), a leading investment solutions provider and the U.S. retail distribution arm of SLC Management, announced today that it will provide marketing and distribution for Crescent Private Credit Income Corp. (CPCI), a non-exchange traded, perpetual-life business development company (BDC) launched by Crescent Capital Group LP.
CPCI is designed to generate current income with meaningful downside protection by providing access to a diversified portfolio consisting primarily of sponsor-backed, directly originated assets, including debt securities and related equity investments, made to, or issued by U.S. middle-market companies.
“There is tremendous opportunity for investors in private credit, and it is a growing market which provides a vital function to our economy largely due to the amount of economic activity driven by small and mid-sized businesses,” said Cliff Corso, President and CIO at AAM. “Crescent Private Credit Income Corp. allows financial advisors ease of access to this attractive asset class in a transparent fund format.”
CPCI primarily invests in companies with annual earnings before income tax expense, depreciation and amortization between $35 million and $120 million, although it may invest in larger or smaller companies. To a lesser extent, CPCI may also make investments in syndicated loans and other liquid credit opportunities.
“We foresee the growing demand for capital from middle market borrowers as a long-term trend, which CPCI looks to capitalize on,” said Chris Wright, Head of Crescent Private Markets. “Crescent is excited to bring its credit expertise to the wealth channel through our relationship with AAM.”
About Advisors Asset Management
For over 40 years, AAM has been a trusted resource for financial advisors and broker/dealers. The firm offers access to alternatives, exchange-traded funds, the fixed income markets, managed accounts, mutual funds, structured products, and unit investment trusts. AAM is a part of SLC Management, the institutional alternatives and traditional asset management business of Sun Life. For more information, visit www.aamlive.com.
As of June 30, 2023, the brokerage and advised business at AAM represents approximately $41.5 billion in assets. (Assets under supervision represent $5.4 billion in UIT assets. The firm has $32.3 billion in assets under administration that represents the non-proprietary assets for which AAM provides various levels of service, but not management. The firm’s $3.8 billion in assets under management represents AAM’s proprietary separately managed account, mutual fund and ETF assets.)
Advisors Asset Management, Inc. (AAM) is a SEC-registered investment advisor and member FINRA/SIPC. | 18925 Base Camp Road | Monument, CO 80132 | www.aamlive.com
Important Information and Risk Factors
An investment in common shares (the “shares”) of beneficial interest in CPCI involves a high degree of risk. You should only purchase shares of CPCI if you can afford a complete loss of your investment. Prior to making an investment, you should read the Prospectus, including the “Risk Factors” section therein, which contains a discussion of the risks and uncertainties that CPCI believes are material to its business, operating results, prospects and financial condition. These risks include, but are not limited to, the following:
- CPCI has a limited operating history and there is no assurance that it will achieve its investment objective.
- You should not expect to be able to sell your shares regardless of how well CPCI performs.
- You should consider that you may not have access to the money you invest for an extended period of time.
- CPCI does not intend to list the shares on any securities exchange, and it does not expect a secondary market in the shares to develop prior to any listing.
- Because you may be unable to sell your shares, you will be unable to reduce your exposure in any market downturn.
- CPC has not identified specific investments that it will make with the proceeds of this offering. As a result, this may be deemed a “blind pool” offering and you will not have the opportunity to evaluate CPCI’s investments before it makes them.
- CPCI invests primarily in privately-held companies for which very little public information exists. Such companies are also generally more vulnerable to economic downturns and may experience substantial variations in operating results.
- The privately-held companies and below-investment-grade securities in which CPCI will primarily invest will be difficult to value and are illiquid.
- CPCI has implemented a share repurchase program, but only a limited number of shares will be eligible for repurchase, and repurchases will be subject to available liquidity and other significant restrictions. Such share repurchase prices may be lower than the price at which you purchase CPCI’s shares in this offering.
- An investment in the shares is not suitable for you if you need access to the money you invest. See “Suitability Standards” and “Share Repurchase Program” in the Prospectus.
- An investment in CPCI’s shares is suitable only for investors with the financial ability and willingness to accept the high risks and lack of liquidity inherent in an investment in CPCI’s shares.
- CPCI cannot guarantee that it will make distributions, and if it does, it may fund such distributions from sources other than cash flow from operations, including, without limitation, the sale of assets, borrowings, return of capital to stockholders or offering proceeds. Although CPCI generally expects to fund distributions from cash flow from operations, CPCI has not established limits on the amounts it may pay from such sources. A return of capital is a return of a portion of your capital investment in our shares.
- Distributions may also be funded in significant part, directly or indirectly, from temporary waivers or expense reimbursements borne by Crescent Cap NT Advisors, LLC, CPCI’s investment adviser (the “Adviser”) or its affiliates, that may be subject to reimbursement to the Adviser or its affiliates. The repayment of any amounts owed to CPCI’s affiliates will reduce future distributions to which you would otherwise be entitled.
- CPCI expects to use leverage, which will magnify the potential loss on amounts invested in it. See “Risk Factors—Risks
Relating to Our Business and Structure—Our strategy involves a high degree of leverage” in the Prospectus.
- CPCI qualifies as an “emerging growth company” as defined in the Jumpstart Our Business Startups Act, which means that it is eligible to take advantage of certain exemptions from various reporting and disclosure requirements that are applicable to public companies that are not emerging growth companies, and Crescent Private Credit Income Fund cannot be certain if the reduced disclosure requirements applicable to emerging growth companies will make its shares less attractive to investors.
- CPCI invests in securities that are rated below investment grade by rating agencies or that would be rated below investment grade if they were rated. Bonds that are rated below investment grade are sometimes referred to as “high yield bonds” or “junk bonds.” Below investment grade securities have predominantly speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal. They may also be illiquid and difficult to value.
No Offer or Solicitation
This press release is neither an offer to sell nor a solicitation of an offer to buy securities. An offering is made only by a prospectus. This press release must be read in conjunction with the Prospectus in order to fully understand all of the implications and risks of the offering of securities to which the Prospectus relates. Please carefully read the Prospectus and consider CPCI’s investment objectives, risks, charges and expenses and other information described therein prior to making any investment decisions. A copy of the Prospectus must be made available to you in connection with any offering. No offering is made except by a prospectus filed with the Department of Law of the State of New York. Neither the U.S. Securities and Exchange Commission, the Attorney General of the State of New York nor any other state securities regulator has approved or disapproved our common stock, determined if the Prospectus is truthful or complete or passed on or endorsed the merits of the offering. Any representation to the contrary is a criminal offense.
Informational advertising only. The securities herein described have not been qualified or registered for sale in Texas. Any representation to the contrary or consummation of sale of these securities in Texas prior to qualification or registration thereof is a criminal offense.
CRN: 2023-0926-11140 R
CONTACT:
Matthew Bono
JConnelly
(973) 590-9110
[email protected]
SOURCE Advisors Asset Management
