CION Ares Diversified Credit Fund Eclipses $3 Billion in Total Assets

May 4, 2022 | Luke Schmidt | Blue Vault

On May 4, 2022, CION Investments (“CION”) announced that CION Ares Diversified Credit Fund (“CADC” or the “Fund”) had raised $390 million in new capital during the first quarter of 2022.  This milestone brings the Fund’s total managed assets to $3.1 billion.  CADC is structured as an interval fund and continuously offers its shares.

CION co-CEO Michael A. Reisner noted, “We are thrilled with the growth we’ve seen in this Fund and its reception from our partners. This is a strong recognition of the Fund’s value proposition, the appetite investors have for credit alternatives beyond fixed income, and the investment team’s rigorous approach to identifying valuable opportunities as the market shifts. The floating rate nature of the instruments held by the Fund has driven strong investor demand as rates continue to rise and the trajectory of increases remains uncertain.”

CADC invests in illiquid and liquid credit investments, seeking superior risk-adjusted returns across various market cycles.  The Fund employs a dynamic asset allocation framework, leveraging the advisor’s extensive operational resources, infrastructure and origination network. The Fund is currently distributed through a broad universe of RIAs, independent broker-dealers, and wirehouses.

Michael continued, “Our scale, operational expertise, and alternatives experience is something we feel is a true differentiator. We’ve set out to provide the individual investors with access to the alternative credit spectrum in one fund, without high minimums or a multi-year lock-up, and we believe we’re accomplishing this goal. We are excited to continue working with our partners as they seek to help investors navigate what is expected to be a volatile market environment moving forward.”

Since inception in January of 2017 and through March 31, 2022, the Fund has raised an estimated $2.55 billion in capital.  During its most recent fiscal year ending December 31, 2021, the Fund reported a total return for its Class A shares of 8.21% with an effective annual distribution rate of 5.41%.

Source:  CION, SEC, Blue Vault