Cantor, Lincoln convert private oil fund into 2.25%-fee interval fund

Cantor Fitzgerald Asset Management and Lincoln Energy Partners converted a private oil and gas fund into the Cantor Fitzgerald Energy Fund, an interval fund charging 2.25% a year that offers to repurchase at least 5% of shares each quarter.

The fund acquired all of the assets and liabilities of Del Rio Royalty Company II LLC on Oct. 23 in a tax-free reorganization, AltsWire reported. Investors in the predecessor, a private fund Lincoln managed, received Class S shares in the exchange.

For advisors, the wrapper changes the mechanics: a 2.25% annual management fee on daily net assets across all four share classes and quarterly 5% repurchase offers instead of daily redemption. Class A shares carry a sales load of up to 5.75%, which falls to zero at $1 million or more. The fund reports on 1099s, according to IREI.

The adviser is Cantor Fitzgerald Energy Advisors LLC, a newly organized joint venture between Cantor Fitzgerald Investors LLC and Lincoln affiliate LEH II Management LLC, AltsWire reported. Ultimus Fund Distributors LLC sells shares on a best-efforts basis, directly and through broker-dealers and other selling agents. Shares are generally offered only to U.S. persons for federal income tax purposes.

As of Oct. 26, the portfolio held about 3,000 wells run by more than 200 operators across U.S. basins, with oil, natural gas and natural gas liquids exposure, the companies said. Under normal market conditions, at least 80% of net assets, plus borrowings for investment purposes, will be invested in energy-related assets in the continental United States: non-operated working interests, mineral and royalty interests, and overriding royalty interests held through subsidiaries and joint ventures. The fund may also hold publicly traded energy securities and borrow up to one-third of managed assets.

Cantor and Lincoln said the reorganization created one of the first funds registered under the Investment Company Act of 1940 to offer direct investor access to the asset class.

The fund has applied to the SEC for exemptive relief to co-invest alongside affiliates of its adviser. The first repurchase offer is expected in December 2026.