Four Corners Capital Management, an affiliate of Macquarie Bank, has teamed up with First Trust Advisors to launch a closed-end retail fund that invests in bank loans. Industry veteran and Four Corners President and CIO Michael McAdams is co-portfolio manager. Robert Bernstein, managing director and chief credit officer of Four Corners is the other portfolio manager for the First Trust/Four Corners Senior Floating Rate Income Fund. Bernstein declined to comment. The initial public offering for the fund was held late last month with 4.375 million shares sold at $20.
When Four Corners was set up in 2001, the intention was to manage loan assets in structured vehicles. However, CIBC World Markets was unsuccessful in bringing the debut $400 million deal, Mondrian CDO I, to market and the firm let go a number of staff (LMW, 12/02). But retail loan funds are enjoying a resurgence in popularity as investors prepare for a potential rise in interest rates. Eaton Vance Corp. in May completed a massive $2.02 billion IPO for its Eaton Vance Limited Duration Income Fund and recently State Street Research & Management mulled bringing its floating-rate fund strategy to the retail level (8/18).