Nomura Alternative Income Fund (NAIFX)
Income-oriented strategy with diversified investments across the private credit spectrum including Corporate Credit, Asset-Based Lending, Specialty Finance and Real Estate Lending
Nomura Alternative Income Fund (NAIFX) provides accredited investors with access to a well-diversified portfolio of alternative income. The fund invests in a wide range of curated exposures, seeking to unlock the value of the global credit markets with an emphasis on private markets. The fund’s primary objective is to seek superior income and total returns. The fund structure provides investors with features such as daily pricing, 1099 tax reporting, and quarterly liquidity with a fund level gate between 5-25% of NAV (net asset value).
Investment Approach
NAIFX is a closed-end interval fund that provides diversified exposure to private and public credit sectors for accredited investors, enabling easy access by removing operational and suitability-related hurdles that such investors often face. NAIFX will invest a majority of assets both directly and indirectly through investment vehicles across the global credit markets. Nomura Capital Management (NCM) will assess market opportunity and employ a flexible allocation strategy to help maximize risk-adjusted returns and current income.
Key Facts
Objective
The primary investment objective of the Fund is to maximize risk-adjusted total return, and the Fund will seek to provide current income as a secondary investment objective.
As of September 30, 2024 – Unless otherwise stated
| Symbol/Ticker | NAIFX (Institutional Share Class) |
| Structure | Interval Fund (’40 Act-registered) with daily purchase and quarterly redemption |
| Minimum Investment | $25,000 |
| NAV Frequency | Daily |
| Purchases | Daily, must be an accredited investor |
| Liquidity | Quarterly, no less than 5% of fund NAV |
| Distributions | Quarterly |
| Current Distribution Rate1 | 9.48% |
| Tax Reporting | 1099-DIV |
| Expenses2 | Net Expense Ratio: 1.2% (excl. AFFE & borrowing cost) |
| Leverage | No leverage at the fund level |
| Net Assets as of 10/21/2024 | $125,277,273 |
* Past performance is not indicative of future results. Performance data shown represents past returns and future returns may be higher or lower. The value of the Fund’s shares will fluctuate, and upon redemption an investor’s shares may be worth more or less than the original cost. Total returns include reinvestment of distributions and are net of the Fund’s net expenses. Fund performance is net of fees.
1. As of October 1, 2024. Current Distribution Rate has been calculated by multiplying the last posted dividend by 4 to annualize, and then dividing by the NAV per share on pay date. Distribution payments are not guaranteed. May pay distributions from sources other than net investment income and capital gains, including, without limitation, the sale of assets, borrowings, return of capital (ROC) or offering proceeds, and advances or the deferral of fees and expense reimbursements. Based on current estimates, it is expected that amounts distributed to investors would include a return of capital. ROC should not be confused with yield or income. There can be no assurance that a change in market conditions or other factors will not result in a change in the Fund distribution rate at a future time.
2. Net Expense Ratio excludes Interest on Borrowings and Acquired Fund Fees and Expenses (“AFFE”). The fund currently benefits from a cap of 1.2% of the management fee and fund expenses. The Expense Limitation and Reimbursement Agreement is in effect until July 28, 2025, and will automatically renew for successive twelve-month periods thereafter. The Board may terminate the Expense Limitation and Reimbursement Agreement at any time upon 30 days’ written notice, and the Investment Manager may terminate the Expense Limitation and Reimbursement Agreement effective as of the end of the then current term upon 30 days’ written notice. See prospectus for more details. See prospectus for more details.
1. As of October 1, 2024. Current Distribution Rate has been calculated by multiplying the last posted dividend by 4 to annualize, and then dividing by the NAV per share on pay date. Distribution payments are not guaranteed. May pay distributions from sources other than net investment income and capital gains, including, without limitation, the sale of assets, borrowings, return of capital (ROC) or offering proceeds, and advances or the deferral of fees and expense reimbursements. Based on current estimates, it is expected that amounts distributed to investors would include a return of capital. ROC should not be confused with yield or income. There can be no assurance that a change in market conditions or other factors will not result in a change in the Fund distribution rate at a future time.
2. Net Expense Ratio excludes Interest on Borrowings and Acquired Fund Fees and Expenses (“AFFE”). The fund currently benefits from a cap of 1.2% of the management fee and fund expenses. The Expense Limitation and Reimbursement Agreement is in effect until July 28, 2025, and will automatically renew for successive twelve-month periods thereafter. The Board may terminate the Expense Limitation and Reimbursement Agreement at any time upon 30 days’ written notice, and the Investment Manager may terminate the Expense Limitation and Reimbursement Agreement effective as of the end of the then current term upon 30 days’ written notice. See prospectus for more details. See prospectus for more details.
Disclosures
Nomura Capital Management LLC (“Nomura”, the “Investment Manager”) serves as the investment adviser of the Fund and is responsible for determining and implementing the Fund’s overall investment strategy. The Investment Manager is located at Worldwide Plaza, 309 West 49th Street, New York, NY 10019-7316. The Investment Manager was founded in May 2022 as a subsidiary of Nomura Holding America Inc. The Investment Manager is registered as an investment adviser with the SEC under the Investment Advisers Act of 1940, as amended (the “Advisers Act”).
Each repurchase offer will be for no less than 5% nor more than 25% of the Fund’s Shares outstanding. If the value of Shares tendered for repurchase exceeds the value the Fund intended to repurchase, the Fund may determine to repurchase less than the full number of Shares tendered. In such event, Shareholders will have their Shares repurchased on a pro rata basis, and tendering Shareholders will not have all of their tendered Shares repurchased by the Fund.
The Fund’s investment program is speculative and entails substantial risks. There can be no assurance that the Fund’s investment objectives will be achieved or that its investment program will be successful. Investors should consider the Fund as a supplement to an overall investment program and should invest only if they are willing to undertake the risks involved. Investors could lose some or all of their investment.
The shares are not listed on any stock exchange, and we do not expect a secondary market in the Shares to develop.
You should generally not expect to be able to sell your Shares (other than through the limited repurchase process), regardless of how we perform.
Although we are required to and have implemented a Share repurchase program, only a limited number of Shares will be eligible for repurchase by us.
You should consider that you may not have access to the money you invest for an indefinite period of time.
An investment in the Shares is not suitable for you if you have foreseeable need to access the money you invest.
Because you will be unable to sell your Shares or have them repurchased immediately, you will find it difficult to reduce your exposure on a timely basis during a market downturn.
An investment in the Fund involves risk. The Fund may use leverage its investments by borrowing. The use of leverage increases both risk of loss and profit potential. Alternative investments provide limited liquidity and include, among other things, the risks inherent in investing in securities, futures, commodities and derivatives, using leverage and engaging in short sales. The Fund’s investment performance depends, at least in part, on how its assets are allocated and reallocated among asset classes and strategies. Such allocation could result in the Fund holding asset classes or investments that perform poorly or underperform.
Investors should consider the Fund’s investment objectives, risks, charges, and expenses before investing. This information is included in the Fund Prospectus and can be accessed by calling 833-836-0206. Read the prospectus carefully before you invest.
The Nomura Alternative Income Fund is distributed by Foreside Financial Services, LLC.
To learn more, view Nomura Alternative Income Fund’s 19(a) notice
To learn more, view Nomura Alternative Income Fund’s N-PX
To learn more, view Nomura Alternative Income Fund’s Form 8937 – Report of Organizational Actions Affecting Basis of Securities
Each repurchase offer will be for no less than 5% nor more than 25% of the Fund’s Shares outstanding. If the value of Shares tendered for repurchase exceeds the value the Fund intended to repurchase, the Fund may determine to repurchase less than the full number of Shares tendered. In such event, Shareholders will have their Shares repurchased on a pro rata basis, and tendering Shareholders will not have all of their tendered Shares repurchased by the Fund.
The Fund’s investment program is speculative and entails substantial risks. There can be no assurance that the Fund’s investment objectives will be achieved or that its investment program will be successful. Investors should consider the Fund as a supplement to an overall investment program and should invest only if they are willing to undertake the risks involved. Investors could lose some or all of their investment.
The shares are not listed on any stock exchange, and we do not expect a secondary market in the Shares to develop.
You should generally not expect to be able to sell your Shares (other than through the limited repurchase process), regardless of how we perform.
Although we are required to and have implemented a Share repurchase program, only a limited number of Shares will be eligible for repurchase by us.
You should consider that you may not have access to the money you invest for an indefinite period of time.
An investment in the Shares is not suitable for you if you have foreseeable need to access the money you invest.
Because you will be unable to sell your Shares or have them repurchased immediately, you will find it difficult to reduce your exposure on a timely basis during a market downturn.
An investment in the Fund involves risk. The Fund may use leverage its investments by borrowing. The use of leverage increases both risk of loss and profit potential. Alternative investments provide limited liquidity and include, among other things, the risks inherent in investing in securities, futures, commodities and derivatives, using leverage and engaging in short sales. The Fund’s investment performance depends, at least in part, on how its assets are allocated and reallocated among asset classes and strategies. Such allocation could result in the Fund holding asset classes or investments that perform poorly or underperform.
Investors should consider the Fund’s investment objectives, risks, charges, and expenses before investing. This information is included in the Fund Prospectus and can be accessed by calling 833-836-0206. Read the prospectus carefully before you invest.
The Nomura Alternative Income Fund is distributed by Foreside Financial Services, LLC.
To learn more, view Nomura Alternative Income Fund’s 19(a) notice
To learn more, view Nomura Alternative Income Fund’s N-PX
To learn more, view Nomura Alternative Income Fund’s Form 8937 – Report of Organizational Actions Affecting Basis of Securities
Contact Us
Nomura Capital Management LLC
Worldwide Plaza, 309 West 49th Street
New York, NY 10019
Worldwide Plaza, 309 West 49th Street
New York, NY 10019
+1 (212) 667-9996