Neuberger Asset-Based Credit Fund has taken a significant step by filing a preliminary prospectus for the offering of its shares. This move is crucial as it reflects the fund's strategy to engage long-term investors looking for current income through asset-based credit investments.
The fund, previously known as NB Asset-Based Credit Fund, is a Delaware statutory trust registered under the Investment Company Act of 1940. It operates as a non-diversified, closed-end management investment company, specifically structured as an interval fund. The fund's investment objective is to provide a high level of current income through an actively-managed portfolio focused on short-duration, asset-based credit assets.
According to the filing, the fund plans to invest at least 80% of its net assets in various asset-based credit investments. These include consumer and small business loans, receivables, trade finance, and real estate securities. The fund also aims to utilize hedging techniques and engage in derivative transactions to manage risks associated with interest rates and other market factors.
In the filing, Neuberger Asset-Based Credit Fund stated, "The Fund is designed primarily for long-term investors and not as a trading vehicle." This indicates a clear focus on attracting investors who are willing to commit their capital for an extended period, rather than those looking for quick returns.
The fund will offer three classes of shares: Institutional Class, Class A-1, and Class A-2. Each class will have different characteristics, with Class A-1 Shares potentially carrying a sales load of up to 3.50% for investors. The fund's shares are not listed on any securities exchange, and there is no expectation of a secondary market developing for them.
This filing is expected to impact various stakeholders, including potential investors looking for income-generating opportunities in the asset-based credit market. The fund's focus on asset-backed securities may also influence other players in the investment management industry, particularly those involved in similar asset classes.
As the fund moves forward with its plans, it will be interesting to see how it positions itself in a competitive landscape that includes other investment management firms focused on asset-based credit. The filing does not specify what happens next, but it sets the stage for the fund's future activities and potential growth in the market.