DEF 14C: Alternative Strategies Income Fund Elects New Trustees

Alternative Strategies Income Fund informs shareholders of the election of three new trustees to its Board, effective September 30, 2025, approved by majority shareholder consent.

Summary

• Fund shareholders, representing a majority of outstanding shares, approved the appointment of three new trustees to the Board of Trustees.
• The new trustees are Brian Fox, Gregory H. Sachs, and Gary Weiss, with their election effective September 30, 2025.
• Brian Fox and Gary Weiss will serve as Independent Trustees, while Gregory H. Sachs will serve as an Interested Trustee due to his role as President of the Fund and affiliation with the Fund's adviser.
• Following the effectiveness of these appointments, incumbent Trustees Gary Lanzen, John Palancia, and Mark Taylor are expected to resign.
• Gregory Sachs, as of September 3, 2025, beneficially owned 495,518.62 shares, representing 49.76% of the Fund's outstanding shares.
• The aggregate ownership of officers and Trustees as of September 3, 2025, was approximately 49.76% of the Fund.
• The estimated cost of preparing and mailing this Information Statement, approximately $8,000, will be borne by the Fund's Adviser.

Sentiment

Score: 7

Explanation: The filing indicates a planned and approved change in board composition, bringing in highly qualified individuals with relevant experience. While there are trustee resignations, they are part of a structured transition. The overall tone is informational and routine, suggesting stability and adherence to governance processes.

Positives

• Appointment of new trustees Brian Fox, Gary Weiss, and Gregory H. Sachs brings extensive experience in finance, capital markets, accounting, and investment management to the Board.
• Brian Fox, a CPA and MBA, offers expertise in start-ups, early-stage businesses, and investment firms, and serves on multiple advisory boards.
• Gary Weiss has a distinguished forty-year career in global finance and capital markets, including leadership roles at TradeStation Securities Inc. and Refco Inc.
• Gregory H. Sachs, the Fund's portfolio manager, is a seasoned founder and CEO of investment management firms, having managed approximately $17 billion at Deerfield Capital Management LLC.
• The Board maintains a non-executive Chairman (Anthony Hertl) and an independent Audit Committee chair (Mark H. Taylor), aligning with strong corporate governance practices.

Negatives

• The expected resignation of three incumbent Independent Trustees (Gary Lanzen, John Palancia, and Mark Taylor) represents a change in board composition and a reduction in the number of independent trustees from four to three, with one independent trustee position effectively becoming an interested trustee position.

Risks

• The Board is responsible for overseeing risk management and regularly discusses risk management, receiving compliance reports from its Chief Compliance Officer.
• The Audit Committee considers financial and reporting risk within its area of responsibilities.
• No specific new or heightened risks are identified in the filing beyond the general oversight responsibilities of the Board.

Future Outlook

The election of new trustees Brian Fox, Gregory H. Sachs, and Gary Weiss will become effective on September 30, 2025, at which point Gary Lanzen, John Palancia, and Mark Taylor are expected to resign. The Fund will continue its operations as a continuously offered, non-diversified, closed-end management investment company.

Management Comments

• "The enclosed document is purely for informational purposes. You are not being asked to vote or take action on any matter." (Gregory Sachs, President)
• "As always, please feel free to contact the Fund at 1-833-860-1407 with any questions you may have." (Gregory Sachs, President)
• "The Board does not believe any one factor is determinative in assessing a Trustee's qualifications, but that the experience and background of each make them highly qualified."
• "Generally, the Fund believes that each Trustee is competent to serve because of their individual overall merits including: (i) experience, (ii) qualifications, (iii) attributes and (iv) skills."

Industry Context

This filing reflects a routine governance update for a registered investment company, specifically an interval fund, involving changes to its Board of Trustees. Such changes are common in the investment management industry to ensure ongoing board refreshment and to bring in diverse expertise relevant to the fund's strategy and regulatory environment. The emphasis on independent trustees and robust risk oversight aligns with broader industry best practices for corporate governance in investment funds.

Comparison to Industry Standards

• The Fund's board structure, with a non-executive Chairman and an independent Audit Committee chair, aligns with strong corporate governance practices often seen in well-managed investment funds and public companies.
• The appointment of trustees with backgrounds in accounting (CPA, PhD), financial services, and capital markets is consistent with the expertise typically sought for boards overseeing complex financial products like alternative strategies income funds.
• The disclosure of trustee ownership and compensation practices is standard for SEC-regulated investment companies, providing transparency to shareholders.

Management Changes

Corporate Governance

Related Party Transactions

• Gregory Sachs, the new Interested Trustee and President of the Fund, is also the Founder, Chairman, and CEO of Sachs Capital Group LP and CEO/CIO of SCG Asset Management LLC (the Fund's investment adviser).
• Mr. Sachs beneficially owned 49.76% of the Fund's shares as of September 3, 2025, and was instrumental in the election of the new trustees via majority shareholder consent.
• The Fund's adviser will bear the estimated $8,000 cost of preparing and mailing the Information Statement.

Stakeholder Impact

• Shareholders are informed of significant changes in board composition and leadership, which may influence strategic direction and oversight. The shift in the independent/interested trustee ratio is a notable governance change.
• Management and employees will operate under a revised board structure, potentially affecting strategic guidance and oversight.
• The Fund's adviser, SCG Asset Management, LLC, sees its principal, Gregory Sachs, appointed as an Interested Trustee, strengthening the adviser's representation on the board.

Next Steps

• The election of Brian Fox, Gregory H. Sachs, and Gary Weiss as Trustees will become effective on September 30, 2025.
• Gary Lanzen, John Palancia, and Mark Taylor are expected to resign as Trustees following the effectiveness of the new appointments.
• Shareholders can request annual and semi-annual reports or contact the Fund with questions.

Key Dates

Keywords

Alternative Strategies Income Fund, Board of Trustees, Trustee Election, Corporate Governance, SEC Filing, DEF 14C, Investment Fund, Fund Management, Brian Fox, Gregory H. Sachs, Gary Weiss, Independent Trustee, Interested Trustee