In a recently published article, Chris Larson of FundFire Alts discusses a new product offering by Gemcorp Capital Advisors. Gemcorp, a London-based asset manager, filed its initial registration statement for the Gemcorp Commodities Alternative Products Fund with the SEC on February 27, 2024. The interval fund will seek to provide unique investment opportunities focused on commodities.
The fund will primarily concentrate on credit, with allocations of up to 60% in commodity-linked credit and up to 20% in commodity-linked equities. It also has the flexibility to invest in supply chain financing and physical commodities.
In contrast to most interval funds, which are commonly offered without performance fees, the fund will carry a management fee of 1.5% and a 15% performance fee above a 5% hurdle.
Gemcorp will look to capitalize on a potential commodity market upturn and aims to attract institutional investors familiar with the manager, financial advisors, and high-net-worth investors. Kim Flynn, President at XA Investments, noted, “This is good timing for [Gemcorp] because they’re ahead of the curve,” emphasizing the strategic advantage of being a first mover in the market.