CHICAGO–(BUSINESS WIRE)–XA Investments LLC (“XAI”), a new investment advisory firm dedicated to providing innovative alternative investment strategies for individual investors, today announced the commencement of the initial public offering of its first closed-end fund, XAI Octagon Floating Rate & Alternative Income Term Trust (“XFLT” or the “Trust”). The Trust seeks attractive total return with an emphasis on income generation across multiple stages of the credit cycle by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest primarily in floating rate credit instruments and other structured credit investments.
“XFLT is the first of a series of distinctive, demand-driven alternative investment opportunities designed by XAI to provide investors access to institutional quality investment strategies managed by an industry recognized sub-adviser to achieve attractive portfolio outcomes”
As sub-adviser to the Trust, Octagon Credit Investors, LLC (“Octagon”) will be responsible for management of the Trust’s portfolio. With $16 billion in assets under management (as of June 30, 2017), Octagon brings an experienced team of investment professionals and a 23-year track record to the management of the Trust.
“XFLT is the first of a series of distinctive, demand-driven alternative investment opportunities designed by XAI to provide investors access to institutional quality investment strategies managed by an industry recognized sub-adviser to achieve attractive portfolio outcomes,” said Ted Brombach, Co-Chief Executive Officer of XAI and co-founding partner of XMS Capital Partners, LLC (“XMS”), XAI’s parent company.
“XFLT offers several important benefits to investors – access to an institutional alternative credit strategy that seeks opportunities to generate higher levels of monthly income, diversification from stocks and bonds, no performance fees, exchange-traded liquidity, transferability between accounts and firms, a simple 1099 tax form and a floating rate strategy that limits interest rate sensitivity,” added John “Yogi” Spence, Co-Chief Executive Officer of XAI and co-founding partner of XMS.
The Trust is registered under the Investment Company Act of 1940, as amended, and will offer its shares on a limited basis from September 5 until September 26, 2017. The Trust’s common shares have been approved for listing on the New York Stock Exchange, subject to notice of issuance, under the trading or “ticker” symbol “XFLT.” For further information regarding the Trust, please visit www.xainvestments.com.
About XA Investments
XAI is a Chicago-based firm founded by XMS in April, 2016. XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment strategies and managers. XAI provides investors with access to alternative managers previously only available to institutional investors. It will partner with established asset managers with proven capabilities in alternative credit, private debt and…