Mount Logan Capital’s Opportunistic Credit Interval Fund (SOFIX) will acquire the assets of the Yieldstreet Alternative Income Fund (YS AIF), nearly doubling the fund’s size.
Additionally, Mount Logan Management, the manager of SOFIX, has entered into a two-year transition services agreement with Willow Asset Management (Willow Wealth), the advisor of YS AIF, to access the books and records of YS AIF following closure of the transaction, in exchange for $2m (£1.5m) in cash and $1m in newly-issued common stock of Mount Logan Capital.
The asset acquisition will see investors in YS AIF and SOFIX obtain access to a larger investment vehicle with greater scale, economic efficiency and increased portfolio diversification.
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The deal is expected to increase SOFIX’s assets by more than $100m, while Mount Logan estimates the transaction could generate $2.8m or more of incremental annual fee-related earnings (FRE).
Subject to regulatory and YS AIF shareholder approvals, the deal is likely to close late in the second quarter or in the third quarter of 2026.
“This transaction is expected to nearly double SOFIX’s net assets, it will reduce its expense ratio, enhances its positioning with existing and prospective investors, and it increases Mount Logan’s recurring FRE base,” said Ted Goldthorpe, chief executive of Mount Logan.
“The YS AIF portfolio is highly complementary to SOFIX’s existing holdings and expands our exposure to cash-flowing specialty finance and asset-backed credit assets. We believe the transaction is immediately accretive to Mount Logan and positions us to pursue additional disciplined AUM growth opportunities.”
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The acquisition has received approval from the board of trustees of SOFIX and the board of directors of YS AIF.
“YS AIF was built to give individuals access to alternative income, and we believe moving its assets into a larger fund like SOFIX that has strong historical performance, reports a daily net asset value per share, and is managed by a specialized asset manager like Mount Logan, is a logical step forward,” added Ted Yarbrough, chief investment officer at Willow Wealth.
YS AIF has suspended the offering of its shares for sale with immediate effect, although its automatic dividend reinvestment plan will continue to operate.
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