Raymond James has filed paperwork with the US Securities and Exchange Commission (SEC) to launch a private credit interval fund.
The fund will be called the RJ Private Credit Income Fund, and aims to generate current income and preserving capital.
Its investment strategy is to directly or indirectly invest at least 80 per cent of its assets in private credit assets including lending directly to companies, and investing in business development companies and investment funds which offer exposure to private credit. Between 30 and 70 per cent of the fund’s allocations will be made into investment funds.
The fund will offer limited liquidity to investors by making quarterly offers to repurchase between five and 25 per cent of its outstanding shares at net asset value.
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The fund may also utilise leverage via a number of credit instruments including credit facilities, special purpose vehicles, and notes.
The investment manager will be Raymond James Investment Management Inc, while Mercer Investments has been listed on the paperwork as a consultant.
The fund will offer two classes of shares. Class S shares will have a minimum buy-in of $25,000 (£20,219.12), while Class I shares have a minimum investment of $1m.
Raymond James has been enhancing its private credit offering over the past year.
Last April, the firm expanded its Private Capital Advisory Investment Banking practice with the addition of four senior bankers.
And in May 2024, the company partnered with Eldridge Industries to launch a new private credit business called Raymond James Private Credit.
The business is focused on four key sectors: consumer; diversified industrials; healthcare; and technology and services.
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