Boston, January 9, 2023–(BUSINESS WIRE)–Fidelity Investments® today announced the expansion of its rapidly growing line of alternative investments (alts) with the launch of Fidelity Private Credit Fund, a business development company (BDC). The new BDC is now available for individual investors* and distributed through financial advisors and brokers in most states**.
Fidelity Private Credit Fund is managed by Fidelity Diversifying Solutions LLC***. Fidelity Diversifying Solutions LLC*** is an investment advisor formed to support the growth of Fidelity’s alternative investment capabilities and the development of alternative products and solutions.
“With the launch of the Fidelity Private Credit Fund, Fidelity is leveraging the depth and breadth of its credit-focused resources to bring the private・Providing clients with income-focused strategies in the credit market: Head of Direct Lending at Fidelity Investments “We continue to see significant growth in the private credit market and the Fidelity Direct Lending team is We aim to use our extensive network to access high quality investment opportunities.”
Fidelity will establish a direct lending business in 2021 and the team continues to grow, including portfolio managers David Gaito, Therese Icuss and Jeffrey Scott. Our portfolio management team averages more than 20 years of midmarket lending experience and has sourced, underwritten or managed diverse credit and lending teams in a variety of market environments. The team is backed by Fidelity’s 50+ years of experience in the credit markets and his over $620 billion.Me Credit investments in operation.
“Our portfolio management team will be able to leverage the resources of our globally integrated investment organization and Fidelity’s extensive retail and institutional distribution businesses. We continue to strengthen.”
The investment objective of the Fidelity Private Credit Fund is to generate current income and, to a lesser extent, long-term capital appreciation. The fund will pursue these objectives primarily through direct lending to private companies and other select private credit investments. Fidelity’s portfolio management team strives to employ a rigorous and consistent due diligence process when evaluating individual issuers. This team evaluates each issuer’s ownership and management team, business model, competitive differentiation, historical and projected financial performance, cost structure, key customers and key suppliers, and position within the industry. intend to do something.
Fidelity Private Credit Funds will be available to intermediary clients for seamless digital trading via +SUBSCRIBE at launch through Fidelity Institutional’s alternative investment platform, followed immediately by iCapital will be This fund will be available to him through CAIS in the coming months. These platforms are dedicated to education, strategy and resources regarding alternative investment funds and products. Financial advisors and investors interested in learning more can visit fidcredit.com or view the prospectus at http://fiiscontent.fmr.com/9907037.PDF.
Fidelity Alternative Investments
Fidelity offers a variety of capabilities to institutional, brokerage and retail clients in the alternative space.
In 2022, Fidelity will launch three liquid alt mutual funds: the Fidelity Hedged Equity Fund (FEQHX), the Fidelity Macro Opportunity Fund (FAQAX) and the Fidelity Risk Parity Fund (FAPSX). platform.
Individual investors can also access alternative mutual funds registered under the Investment Companies Act of 1940 (the ’40 Act) through Fidelity.com. In addition, portfolios within Fidelity’s discretionary management account service, Fidelity Portfolio Advisory Services (PAS), may include alternative investments if Fidelity deems them beneficial to the portfolio’s asset allocation strategy and investment mandate. I have.
Fidelity provides qualified investors with access to investment opportunities in areas such as bad debt, real estate debt, private real estate, private equity and Bitcoin.
Fidelity Institutional’s alternative investment platform launched in October 2013 for brokerage clients, providing research, education, third-party due diligence, and a broad range of alternative investment products, including hedge funds and real estate investment trusts (REITs). provides access to , Private Equity Funds, and ’40 Act Mutual Funds.
Fidelity is a leading provider of storage services for over 5,000 alternate products to our customers.
**As of January 6, 2023, Fidelity Private Credit Fund BDC is available in 43 states and territories excluding Alabama, Arizona, Arkansas, Maryland, Michigan, Minnesota, Missouri, New Jersey, Tennessee, Vermont and Washington. increase.
About Fidelity Investments
Fidelity’s mission is to inspire a better future and deliver better outcomes for the customers and businesses we serve.$9.6 trillion, including $3.6 trillion in discretionary assets as of September 30, 2022 With assets under management, we are focused on meeting the unique needs of our diverse clients. Privately held for over 75 years, Fidelity employs over 60,000 people dedicated to the long-term success of our customers. For more information about Fidelity Investments, please visit https://www.fidelity.com/about-fidelity/our-company.
* Open to investors with annual gross income of $70,000 or more and net worth of $70,000 or more, or net worth of $250,000. Individual broker-dealers may impose additional eligibility requirements.
*** Fidelity Diversifying Solutions LLC (FDS) is registered with the U.S. Securities and Exchange Commission (“SEC”) as an investment advisor and with the Commodity Futures Trading Commission (“CFTC”) as a commodity pool operator. (“CPO”) and Commodity Trading Advisor (“CTA”) and a member of the National Futures Association (“NFA”).
This sales and advertising medium is neither an offer to sell nor a solicitation of an offer to buy securities. Offers are made only by means of a prospectus. This material should be read in conjunction with the prospectus for a full understanding of all implications and risks of the offering of securities in connection with the prospectus. A copy of the prospectus must be provided in connection with the offering. No offerings will be made except by means of a prospectus filed with the New York State Department of Justice. The Securities and Exchange Commission, the Attorney General of New York, or any other state securities regulator have not approved or rejected our securities or determined whether the prospectus is true or complete. Any representation to the contrary is a crime.
This document is not an offer or solicitation to buy or sell securities or services and does not constitute investment advice. Fidelity does not provide legal or tax advice. We recommend that you consult an attorney, accountant or other advisor before making any investment.
The information contained in this document is for informational and educational purposes only. To the extent that the investment information in this material is considered recommendation, it is not intended to be unbiased investment advice or fiduciary advice, but is intended to be used as the primary basis for your or your clients’ investment decisions. not. Fidelity and its representatives have a financial interest in the products or services described in this material and receive compensation, directly or indirectly, in connection with their management, distribution and/or services; Therefore, these products or services may have conflicts of interest. Products or services, including Fidelity Funds, certain third party funds and products, and certain investment services.
Investors should review the offering documents, including a description of the risk factors contained in the Fund’s prospectus (“Prospectus”), before deciding to invest in any securities described herein. The prospectus contains a more complete description of the risks described below and additional risks, particularly related to conflicts of interest, regulatory and tax matters. Any decision to invest in any securities referred to herein should be made after reviewing such prospectus, conducting such research as the investor considers necessary, and consulting the investor’s own legal, accounting and tax advisors. after making an independent determination as to the appropriateness and consequences of Investment in Funds.
There is no past performance record and there is no guarantee that the investment objective will be achieved.
An investment in our common stock may not be suitable for all investors and is not designed to be a complete investment programme.
This is a “blind pool” offering, so you don’t have the opportunity to evaluate your investment before making it.
You should not expect to be able to sell your shares regardless of our performance.
You should consider that you may not have access to your invested funds for a long period of time.
We do not intend to list our shares on a stock exchange and do not expect to develop a secondary market for our shares.
We may not be able to sell our shares, so we cannot reduce our exposure during market downturns.
Although the Company intends to implement a share repurchase program, only a limited number of shares will be eligible for repurchase, and repurchases are subject to available liquidity and other material restrictions.
An investment in our common stock is not appropriate if you need access to your invested funds.
We cannot guarantee that any distribution will be made. Distributions, if any, may be made from sources other than cash flows from the business, including but not limited to the sale of assets, borrowings or returns of capital, and are not restricted. Amounts we may pay from such sources.
A substantial portion of distributions may be derived, directly or indirectly, from temporary waivers or reimbursement of costs incurred by Advisor or its affiliates, which are subject to reimbursement to Advisor or its affiliates. may be. Reimbursement of amounts owed to Advisor or its affiliates reduces future distributions to which you may otherwise be entitled.
We expect you to use leverage. This increases the potential for loss of the invested amount.
We qualify as an “emerging growth company” as defined in the Jumpstart Our Business Startups Act, and the relaxation of disclosure requirements applicable to emerging growth companies has made our common stock attractive to investors. Not sure if it will go away.
We intend to invest primarily in securities rated below investment grade by rating agencies.
Fidelity, Fidelity Investments, and the Pyramid logo are registered service marks of FMR LLC. Third-party trademarks displayed herein are the property of their respective owners.
Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917
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Me As of June 30, 2022
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