NEW YORK, May 21, 2015 /PRNewswire/ -- Forefront Capital today announced that it recently launched operations and obtained seed funding of $10,000,000 for Forefront Income Trust (NASDAQ: BFITX) ("FIT" or the "Trust"), a closed end investment company.
Forefront Income Trust aims to generate current income through differentiated lending opportunities focused on specialty finance. The Trust invests in areas that it believes are non-correlated to the equity markets and are carefully selected, structured, and well collateralized in an effort to maximize returns and mitigate risk.
The Trust charges no management fee and distributes the first 8% of its pre-advisory fee net investment income to the investor.
Bradley Reifler, Chairman and CEO of Forefront Income Trust, said, "We are excited to announce the launch and significant seed funding of FIT. At Forefront Income Trust, we make the investor the priority. Simply put, we don't make any money until the investor makes money first. FIT has redefined the compensation structure whereby directly connecting our own success to the success of our investors."
"Forefront has attracted highly respected and influential business leaders from around the world. We believe that the Forefront community provides access to investment opportunities, which have previously been reserved for the wealthiest 1%."
"We understand that investors work hard for their money – that they've sacrificed for themselves and their family. We want to help guide their investments, and our goal is to create a structure that is going to give them cash flow, that they're going to be able to understand, and that will be non-correlated to the market."
For more information about Forefront Income Trust please visit our website at: www.ForefrontIncomeTrust.com
To contact Forefront Income Trust, please call or email us at: 1-844-438-3489; info@ForefrontIncomeTrust.com
About Forefront Capital
Forefront Capital is a global financial services firm and, together with its subsidiaries, provides alternative investment management, investment banking and capital markets services. The foundation of Forefront is its ability to attract highly respected and influential business leaders. Our unique community and relationships provide opportunities typically not available to boutique firms. We view our clients as long-term partners and aim to add value beyond capital raising and advisory services. We often invest proprietary capital to ensure our alignment of interests.
Forefront has created a variety of public and private investment vehicles to access niche market opportunities. Our uniquely sourced asset management products are structured in an effort to be high yielding, risk mitigated and uncorrelated to the market.
The Trust is newly organized and has limited operating history. An investment in the Trust should be considered a speculative investment that entails substantial risks. Shareholders may lose capital including the possible loss of principal and the Trust may fail to effectively achieve its investment objective, including as a result of the credit risks inherent in the Trust's investments. The Shares will not be listed on any securities exchange and will be illiquid. Although the Trust will operate as an "interval fund" by making repurchase offers to its shareholders on a quarterly basis, no assurance can be given that shareholders will be able to sell all of their Shares tendered to the Trust pursuant to any particular repurchase offer or that any particular Shares tendered will be accepted in such repurchase offer. Therefore, you should not expect to be able to sell your Shares at any particular time, regardless of how the Trust performs. The Trust is classified as "non-diversified". As a result, the Trust's investment portfolio may be subject to greater risk and volatility than if its investments were made in the securities of a broad range of issuers.
The Trust will invest substantially all of its assets in a portfolio of unrated or below-investment-grade-rated (commonly referred to as "junk" or high yield/high risk) loans and debt instruments with maturities of generally not more than three years. The Trust's investment policies will include investments in any combination of the following securities: (i) asset-backed securities; (ii) senior secured or unsecured loans or debt ("Senior Loans"); (iii) second lien or other subordinated, secured or unsecured loans or debt ("Second Lien or Subordinated Loans"); (iv) dividend yielding preferred securities; and (v) other securities described herein. High yield, commonly referred to as "junk" or high risk loans and debt instruments, offer the potential for higher returns, but also involve greater risk of default and are more volatile than investment grade securities. There can be no assurance that the liquidation of any collateral securing any Fixed Income Securities would satisfy the debtor's obligation in the event of nonpayment of interest, dividends or principal, or that such collateral could be readily liquidated if at all.
The Trust will not pay the Advisor a management fee. Instead, the Trust will pay the Advisor an advisory fee that compensates the Advisor after shareholders receive the first 8.00% of annual Pre-Advisory Fee Net Investment Income (the "Hurdle"). The Advisor will receive no compensation until after the Hurdle is passed. For Pre-Advisory Fee Net Investment Income above 8.00% and up to and including 18.00%, the Advisory Fee will provide the Advisor with 80% of such income, while shareholders receive 20%. For Pre-Advisory Fee Net Investment Income above 18.00%, the Advisory Fee will provide the Advisor with 20% of such income, while shareholders receive 80%.
Forefront Income Trust's investment objectives, risks, charges and expenses must be considered carefully before investing. The prospectus contains this and other important information about Forefront Income Trust, and may be obtained by calling 1-844-438-3489, or visiting www.forefrontincometrust.com. Read it carefully before investing. Forefront Income Trust is distributed by Northern Lights Distributors, LLC, Member FINRA/SIPC and managed by Forefront Capital Advisors, LLC. Forefront Capital Advisors, LLC and Northern Lights Distributors, LLC are not affiliated.
SOURCE Forefront Capital