What is the GIM Liquid Private Credit Strategy?

Written by TeamEasy | Apr 25, 2024 7:26:00 AM

GIM Liquid Private Credit (“GIMLPC”) is one of our Actively Managed Certificates (AMC) on our platform. Actively Managed Certificates (AMCs) are a bit like bonds issued by banks or financial institutions, and their value changes based on what investors are willing to pay, not directly on the assets they represent.

Unlike ETFs and Unit Trusts, which are groups where many people invest together and share in the holdings, AMCs give their managers the ability to change investments more freely within certain limits. This makes AMCs more flexible compared to the stricter setups of ETFs and Unit Trusts.

What is the the GIM Liquid Private Credit?
The GIM Liquid Private Credit (“GIMLPC”) strategy, managed by Grovepoint Investment Management, focuses in a diversified portfolio of U.S. listed private credit and specialty finance vehicles.

Past performance is not necessarily indicative of future performance and investors should be aware that they may not receive back some or all of the capital invested.

Objective
It aims to earn more money than the standard rate known as the Secured Overnight Financing Rate (SOFR) plus an additional 6% every year. GIMLPC also aims to capture the yield premium available to direct lenders servicing U.S. middle-market companies (EBITDA of $25-$250mn) by investing in vehicles of scale managed by experienced direct lenders including Apollo, Ares, Blackstone, Bain, Carlyle, Oaktree, KKR and Sixth Street.

For more detailed information, you can visit their website.

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