The team at a 25-year-old, $58-billion-AUM, 310-person, institutional, global credit asset manager in Gotham are launching a '40 Act fund.

Last week, Steven Tanabaum, founder and managing partner of GoldenTree Asset Management, unveiled the launch of the GoldenTree Opportunistic Credit Fund (GTOC). New York City-based GoldenTree AM's GoldenTree Asset Management Credit Advisor LLC arm serves as administrator and investment advisor to the new non-diversified, registered, unlisted, closed-end interval fund.

GTOC comes in six flavors:

A shares, with a front-end sales load of 300 basis points and an expense ratio of 428bps;

C shares, with a 100bps early withdrawal charge and an expense ratio of 478bps;

I shares, with no load and an expense ratio of 378bps;

T shares, with no load and an expense ratio of 453bps;

U shares, with no load and an expense ratio of 453bps; and

U-2 shares, with a load of 250bps and an expense ratio of 453bps.

All six expense ratios of GTOC bake in a fee waiver of 44bps. The I shares require a minimum investment of $1 million, while all the other share classes require $2,500.

The PM team for GTOC includes:

Tananabum, who also serves as chief investment officer of GoldenTree AM; and

Lee Kruter, partner and head of performing credit at GoldenTree AM.

GTOC is structured as a Delaware statutory trust under the Investment Company Act of 1940. As with other interval funds, GTOC will straddle the line between institutional asset management products and traditional, open-end mutual funds; like a regular mutual fund, GTOC will feature a daily NAV, but like an institutional fund, GTOC will offer limited redemptions on a quarterly basis.

Tananbaum puts the launch of GTOC in the context of GoldenTree AM's 25 years of offering "opportunistic, multi-asset credit strategies."

"Having a flexible approach and broad toolkit enables us to capitalize on market dislocations and dynamically rebalance the portfolio aiming to capture the most attractive returns," Tananabum states.

Kruter adds that "having flexibility is critical" for investors these days.

"In public markets, we are finding attractive opportunities in the tradeable debt of stressed issuers, which we believe is being materially mispriced by the market," Kruter states. "And we are also creating bespoke, private solutions in corporate and structured credit markets that offer potentially significant return premiums."

Kathy Sutherland, partner and CEO at GoldenTree AM, notes that the firm first entered the interval fund space eight years ago, in 2017.

"We are delighted to be launching GTOC to provide individual investors access to an institutional investment strategy capturing a broad range of opportunities across credit markets," Sutherland states. "We believe this Fund is differentiated in the market given its dynamic nature and total return focus, distinguishing it from many alternative credit funds which are income focused and constrained to a narrow subset of private credit."

GTOC's other service providers include:

Dechert LLP as counsel;

ACA's Foreside Fund Services, LLC as distributor and principal underwriter;

PricewaterhouseCoopers LLP as independent accounting firm; and

State Street Bank and Trust Company as custodian, dividend disbursement agent, and transfer agent.

 

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