Prospectus and Risk Factors

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Prospectus and Risk Factors

Stira Alcentra Global Credit Fund > Prospectus and Risk Factors

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An investment in Stira Alcentra Global Credit Fund (the "Fund") is subject to, among others, the following risk:

  • Investors may not have access to the money they invest for an indefinite period of time. Therefore, an investment in the Fund is not suitable for investors that need access to the money they invest.
  • The shares of the Fund are not listed on any securities exchange and the Fund may not seek to complete a liquidity event.
  • The Fund is a newly organized, non-diversified, closed-end management investment company with no operating history, including no history operating as a RIC.
  • Shareholders will not have the opportunity to evaluate future Fund investments.
  • Although the Fund has implemented a share repurchase program, it may be discontinued at any time and only a limited number of shares are eligible for repurchase. The Fund intends to limit the number of shares to be repurchased during any calendar year to the number of shares the Fund can repurchase with the proceeds it receives from the issuance of shares under its distribution reinvestment plan, or 2.5% in each quarter, whichever is less. Shareholders that tender their shares within one year of purchase will be subject to an early withdrawal charge of 2.0%
  • The amount of distributions paid, if any, is uncertain. Any Fund distributions may, in whole or in part, be funded from offering proceeds or borrowings, which may constitute a return of capital and reduce the amount of capital available to the Fund for investment. Any capital returned to shareholders through distributions will be distributed after payment of fees and expenses.
  • The Fund's investments in various secured and unsecured, rated or unrated debt securities and instruments are subject to non-payment risk and are speculative in nature. There is no guarantee the fund will achieve its objectives.
  • If the Fund invests in derivatives, such securities have risks, including the imperfect correlation between the value of such instruments and the underlying assets of the Fund.
  • Below investment grade instruments (commonly referred to as “high-yield” securities or “junk bonds”) are speculative and may be particularly susceptible to economic downturns, which could cause losses.
  • Investments in certain non-U.S. securities may involve factors not typically associated with investing in the United States or other developed countries.
  • The adviser, the sub-adviser and certain of their affiliates may experience conflicts of interest in connection with management of the Fund including, but not limited to allocation of the adviser's and the sub-adviser's time and resources between the Fund and other investment activities; compensation payable by the Fund to the adviser and its affiliates; and competition with certain affiliates of the sub-adviser for investment opportunities.
  • The Fund will pay fees to the adviser and its affiliates, including the dealer manager. These fees will not be negotiated at arm's length and may be higher than fees payable to unaffiliated third parties. An investment in the Fund is subject to fees and expenses.
  • Increases in interest rates may cause the Fund's investments in fixed rate debt securities to decline in price.
  • During periods of declining interest rates, borrowers or issuers may exercise their option to prepay principal earlier than scheduled, which could reduce income and returns.
  • Investments in subordinated debt have lower priority in right of payment to any higher ranking obligations of the borrower, and the cash flows and assets of the borrower may be insufficient to meet scheduled payments after giving effect to any higher ranking obligations of the borrower.