Destra Multi-Alternative Fund authorizes buyback, raises monthly distribution

Destra Multi-Alternative Fund's board authorized an open-market share repurchase program and raised the listed fund's monthly distribution to $0.1150 per share, the fund said in an Oct. 12 announcement.

The same announcement started the measurement period that will help determine whether the fund continues past its scheduled March 31, 2027, termination date. Repurchases are expected to begin after an initial 30-day cooling-off period, with Clear Street serving as executing broker. The fund may buy common shares on the open market when they trade at a discount to net asset value, subject to market conditions and regulatory requirements. AltsWire reported the fund's disclosure, which did not specify a maximum number of shares or a dollar amount for the program.

The fund operated for roughly a decade as a nontraded interval fund before it was acquired by Destra Capital Advisors in 2018 and renamed from the Multi-Strategy Growth & Income Fund. Its shares began trading on the New York Stock Exchange on Jan. 13, 2022, when the fund redesignated its Class A, C and T shares into a single class of common shares. The listing swapped periodic repurchase offers typical of interval funds for daily trading at a market price that can diverge from net asset value. Validus Growth Investors LLC, doing business as Validex Global Investing, serves as sub-adviser.

An interval fund's repurchase offer is priced at net asset value and can be scaled back when requests exceed the offer's cap; Priority Income Fund's annual tender proration fell to 15% this year, as this publication has reported. An open-market program carries no queue to prorate, taking instead the sellers who trade at the quoted price. The board said the buyback, the higher distribution and the continuation framework are intended to support the fund's market price and narrow the gap between where its shares trade and their net asset value.

The $0.1150 rate applies to distributions payable Oct. 30, Nov. 30 and Dec. 31, replacing the $0.1125 monthly rate the board had approved through September 2026. This is the fourth increase since the fund adopted a monthly distribution policy in March 2025, and the new rate is roughly 59% above the April 2025 level of $0.0725 per share. The path in between: $0.0825 for June through September 2025, $0.0925 for October and November 2025, then $0.1125 from December 2025.

For the fiscal year ended March 31, 2026, the fund paid $9.9 million in distributions against $3.2 million of net investment income, a gap of about $6.7 million. More than half the portfolio sits in private companies and alternative investment funds, including nontraded real estate investment trusts. The final distribution payment, on Dec. 31, lands three months before the scheduled March 31, 2027, termination date.