Alcentra, Dreyfus raise $140 million in IPO of multi-asset fund

By Sarah Lizee

Olympia, Wash., Oct. 31 –Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc. raised $140 million in its initial public offering, according to a press release from BNY Mellon Investment Management.

The diversified, closed-end fund issued 14 million shares at an initial price of $10 a share. If the underwriters exercise their option to purchase additional shares in full, the fund will have raised about $161 million.

The fund has a limited term of about seven years and began trading on Friday on the New York Stock Exchange under the ticker symbol "DCF."

Dreyfus Corp. serves as the investment manager and Alcentra NY, LLC serves as the sub-investment adviser.

The fund is managed by Chris Barris, global head of high yield and deputy CEO at Alcentra and Kevin Cronk, CFA, managing director and head of U.S. credit at Alcentra.

“The fund's focus on diversified investing in floating-rate instruments across the U.S. and European credit markets offers investors enhanced yield potential combined with active risk management and the potential for less interest rate sensitivity than other fixed-income asset classes,” Mark Santero, chief executive officer and president of Dreyfus, said in the release.

The fund normally will invest at least 80% of its managed assets in credit instruments and other investments with similar economic characteristics, including:

• First-lien secured floating-rate loans, as well as investments in participations and assignments of such loans;

• Second-lien, senior unsecured, mezzanine and other collateralized and uncollateralized subordinated loans;

• Corporate debt obligations other than loans; and

• Structured products, including collateralized bond, loan and other debt obligations, structured notes and credit-linked notes.

The fund's assets will be allocated to certain credit strategies, focusing on senior and subordinated loans, corporate debt, special situations investments and structured credit instruments, and among different types of credit instruments within those credit strategies based on absolute and relative value considerations and analysis of the credit markets.

Wells Fargo Securities, Morgan Stanley and UBS Investment Bank were the co-lead underwriters.

Alcentra is a London-based global asset management firm. Dreyfus is a New York-based asset management and distribution company.

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