LOS ANGELES, May 4, 2020 – CIM Group (“CIM”) announced the launch of CIM Real Assets & Credit Fund (“CIM RACR” or the “Fund”), a new closed-end interval fund. CIM RACR seeks to invest in a mix of institutional-quality real assets and credit instruments. The Fund’s investment objective is to generate current income through cash distributions and preserve shareholders’ capital across various market cycles, with a secondary objective of capital appreciation. CIM Capital IC Management, LLC serves as the investment adviser to CIM RACR.
“We believe that CIM RACR will benefit from CIM’s combined real assets, credit and transaction experience, along with our deal-sourcing capabilities, leveraging the extensive expertise across our organization,” said David Thompson, Chief Executive Officer of the Fund. “We are targeting the construction of a balanced portfolio of real assets and corporate credit assets, allowing investors the opportunity to leverage the potential benefits of both asset classes with a goal of providing income and capital preservation, without the double fees associated with typical real estate-focused interval funds.”
CIM RACR will primarily invest in real assets and credit and credit-related assets. Real assets may consist of direct real estate and infrastructure held through one or more wholly-owned real estate investment trust (“REIT”) subsidiaries, as well as publicly traded REITs, non-affiliated private REITs and real estate debt. Credit- related investments may include investments in floating and fixed rate loans; broadly syndicated senior secured corporate loans; investments in the debt and equity tranches of collateralized loan obligation vehicles (“CLOs”); and opportunistic credit investments. Additionally, the Fund may provide an opportunity for individuals to invest alongside institutional partners, potentially aligning interests among the sponsor, partners and shareholders.
To further align the interests of CIM with investors, an affiliate of CIM will invest an aggregate of $20 million in the Fund over time as the Fund receives subscriptions from investors. CIM RACR is available in four share classes: C Shares (RACRX), A Shares (ARACX), I Shares (IRACX) and L Shares (LRACX).
OFS Capital Management, LLC (“OFS”), an investment adviser registered under the Investment Advisers Act of 1940, as amended (the “Advisers Act”), has been selected as the Fund’s investment sub-advisor for CIM RACR’s corporate credit assets. OFS is a full-service provider of capital and levered financial solutions with $2.1 billion in assets under management with a focus on middle market lending, broadly syndicated loans and structured credit. OFS serves as the investment adviser to business development companies, registered closed-end funds; separately managed, proprietary and sub-advised accounts; and as collateral manager to various collateralized loan obligations.
ALPS Distributors, Inc. is the distributor of the CIM Real Assets & Credit Fund. CIM Group, LLC and ALPS Distributors, Inc. are not affiliated. ALPS Distributors, Inc., 1290 Broadway, Suite 1000, Denver, CO 80203, Member FINRA.
1CIM RACR Declares First Distribution
The Board of Directors of the Fund declared a quarterly cash dividend of $0.125 per share of common stock today for each of May and June 2020, representing an annual distribution rate of 6.0% of NAV per share. The dividend will be payable as follows: $0.125 per share to be paid on June 3, 2020 to stockholders of record at the close of business on June 1, 2020 and $0.125 per share to be paid on July 6, 2020 to stockholders of record at the close of business on July 1, 2020. For shares issued during the quarter, the dividend will be prorated from the date of issuance, and the monthly dividend payments will reflect such proration, as applicable. All or a portion of CIM RACR’s distributions may consist of a return of capital and should not be confused as yield of income.
About CIM Real Assets & Credit Fund (CIM RACR)
CIM RACR is a newly organized, non-diversified, closed-end management investment company, registered under the 1940 Act that continuously offers its common shares of beneficial interest and is operated as an “interval fund.” CIM RACR’s investment objective is to generate current income through cash distributions and preserve shareholders’ capital across various market cycles, with a secondary objective of capital appreciation. CIM RACR is advised by CIM Capital IC Management, LLC and sub-advised by CIM Capital SA Management, LLC and OFS Capital Management, LLC, each of which are investment advisers registered under the Advisers Act and affiliates of CIM Group, LLC. For additional information, please visit www.cimgroup.com.
Important Disclosure
This is neither an offer to sell nor a solicitation to purchase any security. Investors should consider the investment objectives, risks, charges and expenses of the CIM Real Assets & Credit Fund (“Fund”) carefully before investing. This and other information are contained in the Fund’s prospectus, which may be obtained by contacting your financial professional or visiting www.cimgroup.com. Please read the prospectus carefully before you invest.
All investing includes risk including the loss of principal. Interval funds are generally suitable only for investors who can bear the risks associated with the limited liquidity of the fund and should be viewed as a long-term investment. There can be no assurance that any fund will meet its objectives.
The Fund is a newly organized, non-diversified, closed-end investment company with no operating history.
The Fund’s distributions may be funded from offering proceeds or borrowings, which may constitute a return of capital and reduce the amount of capital available to the Fund for investment. Although a return of capital will generally not be taxable to a shareholder, it would reduce the shareholder’s cost basis in the Common Shares and may result in higher capital gains taxes, or a lower capital loss, when Common Shares are sold. Any capital returned to shareholders through distributions will be distributed after payment of fees and expenses, as well as the sales load.
About CIM Group®
CIM is a community-focused real estate and infrastructure owner, operator, lender and developer. Since 1994, CIM has sought to create value in projects and positively impact the lives of people in communities across the Americas by delivering more than $60 billion of essential real estate and infrastructure projects. CIM’s diverse team of experts applies its broad knowledge and disciplined approach through hands-on management of real assets from due diligence to operations through disposition. CIM strives to make a meaningful difference in the world by executing key environmental, social and governance (ESG) initiatives and enhancing each community in which it invests. For more information, visit www.cimgroup.com.
Forward-Looking Statements
Statements in this press release regarding management’s future expectations, beliefs, intentions, goals, strategies, plans or prospects, including statements relating to: management’s belief that CIM RACR will benefit from CIM’s combined real assets, credit and transaction experience and deal-sourcing capabilities; the composition of CIM RACR’s portfolio of real assets and corporate credit assets and the potential benefits to investors, which may not be realized; opportunities for individuals to invest alongside institutional partners, and whether those opportunities will align the interests among sponsors, partners and shareholders; and other factors may constitute forward-looking statements for purposes of the safe harbor protection under applicable securities laws. Forward-looking statements can be identified by terminology such as “anticipate,” “believe,” “could,” “could increase the likelihood,” “estimate,” “expect,” “intend,” “is planned,” “may,” “should,” “will,” “will enable,” “would be expected,” “look forward,” “may provide,” “would” or similar terms, variations of such terms or the negative of those terms. Such forward-looking statements involve known and unknown risks, uncertainties and other factors including those risks, uncertainties and factors referred to in CIM RACR’s Registration Statement on Form N-2 (File Nos. 333-229782 and 811-23425) filed with the Securities and Exchange Commission (the “SEC”) under the section “Risks” as well as other documents that may be filed by CIM RACR from time to time with the SEC. As a result of such risks, uncertainties and factors, actual results may differ materially from any future results, performance or achievements discussed in or implied by the forward-looking statements contained herein. CIM RACR is providing the information in this press release as of this date and assumes no obligations to update the information included in this press release or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
