Alternative Credit Income Fund (RCIIX) Ends Year with Top Performing Fund

NEW YORK, Feb. 1, 2022 /PRNewswire/ -- The Alternative Credit Income Fund (the "Fund") (tickers: RCIIX, RCIAX, RCIWX, RXICX, RCILX), a closed-end interval fund managed by BC Partners, reported a 13.43 percent total return during 2021, including four quarterly distributions of $0.175 and capital gains greater than 6.2%.

"The Alternative Credit Income Fund generated double-digit income returns for its investors in 2021, against the backdrop of an increasingly challenging hunt for yield," said portfolio manager Mike Terwilliger. "The Fund is the top performing credit interval fund in terms of returns on a one-year and five-year basis and the number two performer on a three-year basis."¹

"By leveraging all of our resources, the entire team, and our institutional pipeline, we are uniquely positioned to offer our investors access to differentiated private credit assets that have largely been unavailable to retail investors," said Ted Goldthorpe, CEO of BC Partners Credit.

"We encourage investors to view our performance similar to how we view our investments—with a long-term perspective," said Mr. Terwilliger. "Nevertheless, we would highlight the Fund's performance in the early stages of 2022. With the S&P, U.S. High Yield and Barclays Agg all deeply in the red, the Credit Income Fund is positive for the year. This continued outperformance reflects the early stages of the Fund's shift into private assets, which will help reduce volatility."² 

The Fund has outperformed relevant fixed income benchmarks on a 1-, 3- and 5-Year basis as of date:

*YTD through 1/24/2022
**Data represents performance as of the date the Fund started actively investing as of 10/27/2015.
***Inception date of the Fund is 4/17/2015.
The Bloomberg Barclays U.S. Aggregate Index is a broad-based flagship benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS, and CMBS (agency and non-agency).
The S&P/LSTA Levered Loan Total Return Index is a market-value-weighted index designed to measure the performance of the U.S. leveraged loan market based upon market weightings, spreads, and interest payments.

You cannot invest directly in an index. Performance data quoted represents past performance. Past performance does not guarantee future results and investment returns and principal value of the Fund will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data quoted above. For performance information current to the most recent month-end, please call toll-free (833) 404-4103 or visit www.AltCIF.com.

Total Return measures net investment income and capital gain or loss from portfolio investments. All performance shown assumes reinvestment of dividends and capital gains distributions. The Total Annual Fund Operating Expense as disclosed in the prospectus dated December 16, 2020: RCIAX (4.64%), RCICX (5.39%), RCIIX (4.38%), RCIWX (4.38%), RCILX (4.90%). The Advisers have contractually agreed to defer the collection of fees and/or reimburse expenses, but only to the extent necessary to limit Total Annual Fund Operating Expenses (excluding interest, dividend expense, amortization/accretion on securities sold short, brokerage commissions, acquired fund fees and expenses and extraordinary expenses) to 2.59% (RCIAX), 3.34% (RCICX), 2.34% (RCIIX), 2.59% (RCIWX), and 2.84% (RCILX) of the average daily net assets of the funds through October 31, 2022.

The Fund is distributed by ALPS Distributors, Inc. (ALPS Distributors, Inc. 1290 Broadway, Suite 1000, Denver, CO 80203). Sierra Crest Investment Management LLC (the Fund's investment adviser), its affiliates, ALPS Distributors, Inc., and U.S. Bank, N.A. are not affiliated.

Investing involves risk. Investment return and principal value of an investment will fluctuate, and an investor's shares, when redeemed, may be worth more or less than their original cost. Alternative investment funds, ETFs, interval funds, and closed-end funds are subject to management and other expenses, which will be indirectly paid by the Fund. Debt instruments are subject to credit risk and interest rate risk and may be subordinated to more senior debt instruments. BDCs often use leverage to enhance returns and are subject to interest rate risk, credit risk, and liquidity risk. CLOs are debt instruments but also carry additional risks related to the complexity and leverage inherent in the CLO structure. The use of leverage, such as borrowing money to purchase securities, will cause the Fund to incur additional expenses and magnify the Fund's gains or losses.

There currently is no secondary market for the Fund's shares and the Fund expects that no secondary market will develop. Shares of the Fund will not be listed on any securities exchange, which makes them inherently illiquid. An investment in the Fund's shares is not suitable for investors who cannot tolerate risk of loss or who require liquidity, other than the liquidity provided through the Fund's repurchase policy. Limited liquidity is provided to shareholders only through the Fund's quarterly repurchase offers, regardless of how the Fund performs. The Fund's distributions policy may, under certain circumstances, have certain adverse consequences to the Fund and its shareholders because it may result in a return of capital, resulting in less of a shareholder's assets being invested in the Fund, and, over time, increase the Fund's expense ratio. Any invested capital that is returned to the shareholder will be reduced by the Fund's fees and expenses, as well as the applicable sales load. Investments in lesser-known, small and medium capitalization companies may be more vulnerable than larger, more established organizations. The sales of securities to fund repurchases could reduce the market price of those securities, which in turn would reduce the Fund's NAV.

About the Advisor
Sierra Crest is an affiliate of BC Partners Advisors L.P. ("BC Partners"), which has an over 30-year history investing across Europe and North America and has approximately $60 billion in assets under management in private equity, private credit and real estate strategies. BC Partners operates a private equity investment platform, a credit investment platform ("BCP Credit") and a real estate investment platform as fully integrated businesses. Sierra Crest's investment activity takes place within the BCP Credit platform. Integration with the broader BC Partners platform allows BCP Credit to leverage a team of investment professionals across its private equity platform including its operations team. BC Partners has remained an independent partnership since its early days as a pan European private equity manager. Its entrepreneurial spirit is ingrained in the culture of its organization and evident across its three complementary and integrated businesses.

Media Inquiries

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¹ Source: Morningstar, 1 year, 3 year and 5 year returns, respectively, as of December 31, 2021. as follows:  Alternative Credit Income I (13.44%, 32.23% and 47.97%);  PIMCO Flexible Credit Income Inst (11.10%, 27.72% and NA), Cliffwater Corporate Lending I (10.38%, NA, NA); CION Ares Diversified Credit I (8.87%, 22.96% and NA); PIMCO Flexible Municipal Income Ins (6.20%, NA and NA); Variant Alternative Income Institutional (12.29%, 33.40% and NA); Lord Abbett Credit Opportunities Instl (13.35%, NA and NA);  Griffin Institutional Access Credit I (8.55%, 24.19% and NA); Carlyle Tactical Private Credit Invesco Senior Loan Y (7.37%, NA and NA); FS Credit Income I (7.48%, 31.71% and NA); Blackstone Floating Rate Enhanced Inc I (6.87%, 22.92% and NA); KKR Credit Opportunities I (5.41%, NA and NA); BlackRock Credit Strategies Instl (2.58%, NA and NA); Palmer Square Opportunistic Income (6.66%, 21.54% and 34.33%) and Ecofin Tax-Advantaged Scl Impct Instl (4.35%, 9.88% and 34.33%)
² Source: Bloomberg YTD returns through 1/24/2022; U.S. High Yield Returns as measured by Bank of America U.S. High Yield Index (H0A0), total return -1.91%; Bloomberg U.S. Aggregate Bond Index (LBUSTRUU), total return -1.87%; Alternative Credit Income Fund (RCIIX), total return +0.27%.

SOURCE BC Partners