CAZ Investments launches CAZ GP Stakes Growth Fund

CAZ Investments launched the CAZ GP Stakes Growth Fund, a registered interval fund that buys minority stakes in private asset managers, AltsWire reported. It is the Houston firm's second fund built around the GP stakes strategy.

Under normal circumstances the Growth Fund will invest at least 80% of its net assets in GP stakes with favorable growth prospects, according to CAZ. Those holdings may include stakes in managers of private equity, private credit, real estate, infrastructure and venture capital.

The Growth Fund seeks long-term capital appreciation. It sits alongside CAZ's first GP stakes interval fund, renamed the CAZ GP Stakes Income Fund in September. That fund reported $176.2 million in net assets as of June 30 and targets capital appreciation and current income. CAZ markets the two together as the CAZ GP Stakes Fund Series.

The Income Fund is designed for investors who prioritize income, while the Growth Fund is built for those focused on long-term compounding, said Christopher Zook, founder and chief investment officer of CAZ Investments.

The Growth Fund charges a 1.5% management fee and no performance fee at the fund level. Total annual operating expenses run from 2.4% to 3.6% depending on share class, after a fee waiver on Class E shares, and Class A shares carry a sales load of up to 3%. Some of the underlying GP stakes charge their own management fees and carried interest, which investors bear indirectly.

Class A, C and R shares require a $2,500 minimum, Class E shares $100,000, and Class I shares $3 million. Neither the Growth Fund nor the Income Fund requires investors to be accredited. Ultimus Fund Distributors is the distributor.

CAZ expects the Growth Fund to offer to repurchase 5% of its outstanding shares each quarter, with a 2% early repurchase fee on shares repurchased within the first year. That 5% quarterly offer is a fuller exit than some interval funds provide. Priority Income Fund, as this publication has reported, capped its quarterly repurchase at 2.5%.

CAZ said it has allocated more than $8 billion to GP stakes over the past 10 years and holds minority stakes in more than 120 private asset managers. Founded in 2001, the firm said it has more than $12 billion in assets deployed. Per IVF's records, CAZ reported $10.8 billion in regulatory assets as of Oct. 10, a separate measure from the deployed figure.