Thirdline interval fund becomes Northmarq and reverse splits to $25 NAV

Thirdline Real Estate Income Fund will take the Northmarq name and complete a reverse stock split on Dec. 1, a step the fund says will lift net asset value to $25 a share, The DI Wire reported. The ticker changes from TREIX to NREIX.

Each existing share will become roughly one-third of a share in the 1-for-2.993486 reverse split approved by the board. That ratio implies a current NAV of about $8.35, roughly 8% below the $9.11 the fund reported at March 31. The fund said the ratio is set to produce a $25 NAV and could change if NAV moves before the split. Thirdline launched at $10 a share in September 2021 and reported $58.5 million in net assets.

Cash payments for fractional shares may be taxable, the fund said, a detail advisers need to check for clients holding the fund in taxable accounts. A shareholder will hold roughly one-third as many shares with the same total value and proportional ownership.

Shareholders approved a new advisory agreement with Northmarq Fund Management LLC, keeping the advisory fee at 0.98% and capping operating expenses at 1.5% of average daily net assets. The rebrand follows Northmarq's announcement that it would buy Thirdline Capital Management LLC, the Richmond, Va., manager that advised the fund since launch. Charles Hutchens, who has managed the fund since it launched, remains portfolio manager. Northmarq Fund Management reported about $534 million in assets under management, according to the fund, and is owned by Pohlad Companies.