BlackRock has held a first close on its UK Strategic Alternative Income Fund. The offering has raised £500 million ($643 million; €564 million), according to a company announcement.
The fund is being billed as a semi-open ended product. After an initial four-year lock-up period, the offering will allow investors to withdraw capital each year during a liquidity window.
A spokesman for BlackRock said the fund does not have a fixed lifespan like other private debt offerings. It will, however, draw down capital when investments are being made, rather than deploying capital as soon as investors commit it to the fund.
The spokesman added the fund would provide liquidity on a “best efforts” basis. This means the fund will still be able to make long-term illiquid investments without its performance being impacted by fund redemptions.
The offering has an annual management fee of 75 basis points.
The fund is aiming to provide an annual yield of 5 percent. The product will achieve this through investments in infrastructure debt, renewable energy, long-lease property, private credit and real estate debt.
The offering is also expected to hold another round of fundraising during the next six to 12 months. BlackRock is targeting raising £1.5 billion within the fund over the next three years, the spokesman added.
BlackRock recently launched its first Asia-domiciled private credit fund. The firm is looking to raise between $300 million and $500 million for the offering.