Bluerock High Income Credit Fund Takes Major Step by Reducing Fees in 2025

Significant Fee Reductions at Bluerock High Income Institutional Credit Fund

On January 6, 2025, the Bluerock High Income Institutional Credit Fund made headlines by announcing a significant cut in both management and incentive fees aimed at improving investor returns. Effective from January 1, 2025, the base management fee has been reduced by 0.50%, bringing it down to 1.25% per annum. Additionally, the incentive fee will now be set at 12.5% over a 7.5% annualized yield hurdle, a notable decrease from the previous 20% over an 8% threshold. This move reduces the fund's total expense ratio and makes it more appealing for investors seeking better net returns.

Ramin Kamfar, founder and CEO of Bluerock, expressed that this fee reduction is part of the company's commitment to delivering exceptional investment outcomes while ensuring that lower fees translate into stronger returns for investors. Along similar lines, Jeffrey Schwaber, CEO of Bluerock Capital Markets, highlighted that these fee adjustments reflect the fund's dedication to aligning interests with its investors.

In light of these changes, the High Income Fund also announced its fourth-quarter distribution for 2024, maintaining an impressive annualized rate of 12.2%. This statistic showcases the fund's commitment to providing robust returns, as evidenced by a total return of 13.7% throughout the calendar year. The fund has strategically diversified its portfolio, shifting its focus towards senior debt positions, thereby reducing potential risks while still delivering enticing yields to its investors.

The Bluerock High Income Institutional Credit Fund serves as an alternative private credit fund focusing on high current income, appealing risk-adjusted returns, and minimal correlation to broader market fluctuations. For those interested in investing, the fund boasts access to institutional private credit, a sector that has been gaining traction over the past few years. As part of its strategy, the fund invests in diversified senior secured loans via actively managed pools, ensuring risk distribution and prospects for consistent performance across various market cycles.

Bluerock, the asset manager behind the fund, has a track record that spans over two decades, having managed significant assets exceeding $18.7 billion across various credit and real estate products. This historical data positions the Bluerock High Income Fund as a formidable option for investors seeking feasible avenues for capital growth and income generation.

Moreover, prospective investors are required to make a minimum investment of $2,500 for Class A and C shares, with reduced thresholds for retirement plans enhancing accessibility.

For anyone considering this investment opportunity, it is essential to note that investing in the fund carries risk factors. Potential investors are encouraged to review the prospectus carefully, which comprises detailed insights regarding the risks, objectives, and expense structure associated with this unique investment vehicle. As always, investors are reminded that past performance is not indicative of future results.

To learn more about Bluerock and the High Income Fund, one can visit their official website to explore the fund's offerings and performance metrics. With the recent fee reductions and a focus on strong returns, the Bluerock High Income Fund is positioning itself to be a commercially viable choice for discerning investors navigating the complexities of today’s financial landscape.