two investments--anybody have or know anything about them

[palomalou]

1. W. P. Carey: Corporate Property Associate CPA18 (or 17, or 16): this is privately traded REIT
2. FS Energy and Power Fund

I 'd love and and all reports. Not finding them mentioned on a search. Thanks.

 

[Htown Harry]

1. W. P. Carey: Corporate Property Associate CPA18 (or 17, or 16): this is privately traded REIT
2. FS Energy and Power Fund

I 'd love and and all reports. Not finding them mentioned on a search. Thanks.

The are the first two bullet points on Page One on the energy fund's prospectus:

• You should not expect to be able to sell your common shares regardless of how we perform.
• If you are able to sell your common shares, you will likely receive less than your purchase price.

I didn't read farther, because these are reasons I would not invest in private holdings.

I am curious why you are interested. What advantages do you see in this type of investment vehicle vs. a REIT or energy index fund (or even a publicly-traded, managed mutual fund or closed-end fund)?

 

[Htown Harry]

Palomalou, here is an example of a closed end fund with a leveraged loan participation portfolio with some similarities to your second fund. Even has the same advisor.
CEFConnect - Brought to you by Nuveen Closed-End Funds

Some important differences: it's liquid, no 10% front-end load, no industry concentration, holdings have a better credit rating, <2% expense ratio vs. 4%...why go on?

Let me guess. These two you are asking about are recommendations from a financial advisor who earns commissions?

 

[palomalou]

Thanks, Harry. We'll follow up on that second post. You substantiated our feelings on the matter.

 

[Htown Harry]

Many times a gut feeling should be trusted.

Just to be clear, I'm not recommending BSL or loan participation funds or CEF's in general. My point was that there are often comparable (and liquid) publicly traded vehicles that have a portfolio mix similar to the private funds.

My starting point for evaluating options to achieve portfolio diversification into real estate and energy? Vanguard index ETF's VNQ and VDE, respectively.