Destra Capital (Destra) today announced a strategic partnership with RBC Global Asset Management (U.S.) Inc. (RBC GAM-U.S.) to market and distribute the new RBC BlueBay Enhanced Income Fund.
This collaboration combines RBC GAM-U.S.’s global investment experience with Destra’s specialized distribution capabilities, enabling both firms to deliver differentiated alternative investment solutions to intermediary investors. This partnership leverages RBC GAM-U.S.’s strength in credit strategies and Destra’s alternative distribution network to address growing demand for income-oriented, alternative investments.
“We are thrilled to expand our partnership with RBC Global Asset Management-U.S., a globally respected manager in alternative credit investing,” said Dominic Martellaro, CEO of Destra Capital. “This collaboration reflects our shared dedication to innovation and client success. By uniting Destra’s distribution expertise with RBC GAM-U.S.’s investment prowess, we will provide advisors with tools to help navigate complex markets and potentially provide additional value to their clients.”
The RBC BlueBay Enhanced Income Fund will be primarily investing in equity and junior debt tranches of collateralized loan obligations (CLOs), with the flexibility to invest in other structured credit securities, managed by the RBC BlueBay Securitized Credit team with offices in both the US and the UK.
“This partnership marks a significant step forward in delivering innovative alternative solutions to financial intermediaries and wealth management platforms,” said Donald Sanya, CEO of RBC Global Asset Management-U.S. “By combining RBC GAM’s deep credit experience with Destra’s alternatives distribution platform, we are well positioned to address the evolving needs of financial advisors and their clients seeking diversified income strategies. Together, we will expand access to high-quality, alternative investment opportunities to help meet our clients’ long-term financial goals.”
This will mark the second alternative credit vehicle that Destra and RBC have partnered on. In 2018, Destra launched the BlueBay Destra International Event-Driven Credit Fund, with Destra Capital Advisors LLC as Adviser and RBC Global Asset Management (UK) Limited (“RBC BlueBay”) as Sub-Adviser. The BlueBay Destra International Event-Driven Credit Fund has been in the market for over eight years and focuses on stressed, distressed and other global credit opportunities in developed markets.
About Destra Capital
Destra Capital is a specialized asset management firm focused on delivering innovative investment solutions and strategic distribution services. Destra partners with best-in-class investment teams to provide advisors and investors with access to differentiated strategies across global markets.
About RBC Global Asset Management
RBC Global Asset Management (RBC GAM) is the asset management division of Royal Bank of Canada (RBC). The RBC GAM manages more than $570 billion USD in assets and have approximately 1,600 employees located across Canada, the United States, Europe and Asia.
RBC BlueBay Enhanced Income Fund
Before investing, you should consider carefully a fund’s investment objectives, risks, charges, and expenses. This and other information is in the prospectus, which you can view by visiting https://dfinview.com/usrbcgam or request by calling 800.422.2766. Please read the prospectus carefully before investing.
Investing in Shares involves a high degree of risk. The Fund should be considered a speculative investment that entails substantial risks, and prospective investors should invest in the Fund only if they can sustain a complete loss of their investment. An investment in the Fund is subject to, among others, the following risks:
- There is not expected to be any secondary trading market in the Shares.
- Unlike an investor in many closed-end funds, a shareholder should not expect to be able to sell their Shares regardless of how the Fund performs. An investment in the Fund is considered illiquid.
- Unlike many closed-end funds, the Shares are not listed on any securities exchange. The Fund intends to provide liquidity through quarterly offers to repurchase a limited amount of the Fund’s Shares (at least 5%).
- There is no assurance that monthly distributions paid by the Fund will be maintained at a certain level or that dividends will be paid at all.
- The Fund’s distributions may be funded from unlimited amounts of 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.
- A return of capital to shareholders is a return of a portion of their original investment in the Fund, thereby reducing the tax basis of their investment. As a result from such reduction in tax basis, shareholders may be subject to tax in connection with the sale of Fund Shares, even if such Shares are sold at a loss relative to the shareholder’s original investment.
The Fund is a non-diversified, closed-end management investment company with limited operating history. As such, prospective investors have a limited track record and history on which to base their investment decision in this Fund. The Fund is designed primarily for long-term investors and is not intended to be a trading vehicle. An investor should not invest in the Fund if the investor needs a liquid investment. Closed-end funds differ from open-end management investment companies (commonly known as mutual funds) in that investors in a closed-end fund do not have the right to redeem their shares on a daily basis at a price based on NAV. CLOs and other structured finance securities are generally backed by a pool of credit-related assets that serve as collateral. Accordingly, CLO and structured finance securities present risks similar to those of other types of credit investments, including default (credit), interest rate and prepayment risks. CLO equity and junior debt securities are subject to increased risks of default relative to the holders of superior priority interests in the same CLO. Derivative instruments in which the Fund may invest may be volatile and involve various risks different from, and in certain cases greater than, the risks presented by other instruments.
RBC Global Asset Management (U.S.) Inc. is the adviser for the RBC Funds. The RBC BlueBay Enhanced Income Fund is distributed by Quasar Distributors, LLC. Securities are offered through RBC Capital Markets, LLC, member NYSE/FINRA/SIPC. Destra Capital Investments LLC, in cooperation with the Fund’s Distributor, Quasar Distributors, LLC, acts as a wholesale promoter of the RBC BlueBay Enhanced Income Fund to broker-dealers, other eligible financial intermediaries, and investment advisers. RBC Global Asset Management (U.S.), Quasar Distributors, LLC and Destra Capital Investments are unaffiliated.
BlueBay Destra International Event-Driven Credit Fund
For information, including risks for the BlueBay Destra International Event-Driven Credit Fund, please visit https://www.destracapital.com/strategies/bluebay-destra-international-event-driven-credit-fund#risk For Destra Funds, you can obtain a prospectus by visiting www.destracapital.com or request by calling 877.855.3434. Please read the prospectus carefully before investing.
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