486APOS: Versus Capital Real Assets Fund LLC Files Amendment to Registration Statement

Versus Capital Real Assets Fund LLC files an amendment to its registration statement to update financial statements and make other changes to its prospectus and statement of additional information.

Summary

• Versus Capital Real Assets Fund LLC filed a post-effective amendment to its registration statement on Form N-2.
• The amendment aims to update the fund's prospectus and statement of additional information with current financial statements and other relevant changes.
• The filing is made under Rule 486(a) of the Securities Act of 1933 and the Investment Company Act of 1940.
• The proposed effective date for the registration statement is July 29, 2024.
• The fund is a Delaware limited liability company registered under the Investment Company Act of 1940 as a non-diversified, closed-end investment management company operated as an interval fund.
• The fund continuously offers shares of beneficial interest and repurchases them quarterly within specified limits.
• The fund's investment objective is to achieve long-term Real Returns through current income and long-term capital appreciation with low correlation to the broader public equity and debt markets.
• The fund allocates at least 80% of its net assets to U.S. and non-U.S. public and private investments in infrastructure, timberland, and agriculture/farmland.
• The fund obtains exposure through investments in third-party private funds, wholly-owned subsidiaries (including a Sub-REIT), publicly traded securities, and direct private debt investments.
• The fund's investment adviser is Versus Capital Advisors LLC, which manages the fund and has entered into sub-advisory agreements with Brookfield Public Securities Group LLC and Lazard Asset Management LLC.
• The fund offers shares to institutional investors and certain individuals, with minimum initial investments of $10 million and $10,000, respectively.
• The fund provides limited liquidity through quarterly repurchase offers of at least 5% of outstanding shares.
• The fund intends to qualify as a regulated investment company (RIC) under the Internal Revenue Code.

Sentiment

Score: 6

Explanation: The document is a regulatory filing, so the sentiment is neutral. It provides factual information about the fund and its operations.

Positives

• The fund aims to achieve long-term Real Returns through investments in real assets.
• The fund offers quarterly repurchase offers, providing some liquidity to investors.
• The fund has a diversified approach to real asset investing, including infrastructure, timberland, and agriculture/farmland.
• The fund is managed by Versus Capital Advisors LLC, with sub-advisory agreements with experienced firms like Brookfield and Lazard.

Negatives

• Shares are illiquid and not traded on any exchange.
• There is no guarantee that shareholders will be able to sell shares at any given time or in the quantity desired.
• The fund is subject to various risks associated with real asset investments, including market, credit, and regulatory risks.
• The fund's performance depends on the ability of the adviser and managers to develop and implement successful investment strategies.

Risks

• Investments in real assets are subject to market, credit, and regulatory risks.
• The fund's performance depends on the ability of the adviser and managers to develop and implement successful investment strategies.
• The fund's investments in private funds are subject to limited transparency and potential conflicts of interest.
• The fund's use of leverage involves increased costs and risks, including increased variability of net income and net asset value.
• The fund's investments in foreign securities are subject to economic, political, and regulatory risks.
• The fund's investments are subject to valuation risk, as the value of certain investments may be difficult to ascertain.

Future Outlook

The Fund will invest the proceeds of the continuous offering of Shares on an ongoing basis in accordance with its investment objectives and policies.

Industry Context

This announcement is typical for interval funds, which periodically update their registration statements to maintain compliance and provide current information to investors. The focus on real assets aligns with a broader trend of investors seeking alternative investments with low correlation to traditional markets.

Comparison to Industry Standards

• The fund's investment strategy of allocating at least 80% of its net assets to real asset classes such as infrastructure, timberland, and agriculture/farmland is comparable to other real asset funds like the Brookfield Real Assets Income Fund (RAX) and the Cohen & Steers Infrastructure Fund (UTF).
• The management fee of 1.15% is within the range of fees charged by similar interval funds, but investors should compare this to the overall expense ratio, including acquired fund fees and expenses, to assess the total cost of investing.
• The quarterly repurchase offer of 5% to 25% of outstanding shares is a standard liquidity feature for interval funds, but investors should be aware of the potential for proration if repurchase requests exceed the offer amount.
• The fund's use of sub-advisers like Brookfield and Lazard is a common practice in the investment management industry, allowing the fund to leverage the expertise of specialized investment teams.

Stakeholder Impact

• Shareholders will receive updated financial information and disclosures about the fund.
• Potential investors will have access to current information to make informed investment decisions.

Next Steps

• The registration statement is expected to become effective on July 29, 2024.
• The fund will continue to offer shares on a continuous basis.

Key Dates

Keywords

Real assets, Interval fund, Infrastructure, Timberland, Agriculture, Private funds, Real estate, Investment, Versus Capital, Sub-REIT, RIC, Leverage