Nomura Alternative Income Fund (NAIFX)
Income-oriented strategy with diversified investments across the private credit spectrum including Corporate, Asset Based, Specialty 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 June 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 per client ($1mm at the RIA level) |
| NAV Frequency | Daily |
| Purchases | Daily, must be an accredited investor |
| Liquidity Terms | Quarterly, no less than 5% of fund NAV |
| Distribution Frequency | Quarterly |
| Daily Accrual Rate | 8.25% (annualized) current daily investment accrual1 rate |
| Tax Reporting | 1099-DIV |
| Expenses | Expense ratio2 (exclusive of AFF&E): 1.2% Gross Expense Ratio: 2.45% |
| Leverage | No leverage at the fund level |
| Net Assets3 | $116,671,747 |
1. The daily investment accrual rate is the annualized rate at which the Fund has been accruing and posting daily net investment income (interest and dividends, net of fees and expenses) commencing from 7/1/2024. The daily investment accrual rate should not be confused with yield, will vary over time, and is not a predictor of future Fund return.
2. Current Gross expense ratio is 2.45%. The fund currently benefits from a cap of 1.2% of the management fee and fund expenses in place at an initial 12 months from the effective date of the prospectus with an automatic renewal for consecutive one-year terms 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.
2. Assets as of 7/9/2024 for all share classes
2. Current Gross expense ratio is 2.45%. The fund currently benefits from a cap of 1.2% of the management fee and fund expenses in place at an initial 12 months from the effective date of the prospectus with an automatic renewal for consecutive one-year terms 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.
2. Assets as of 7/9/2024 for all share classes
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
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
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