Cion Reit: A Smart Investment Fund Move?

CION Investment Corporation (CION) is a publicly-listed business development company that provides senior secured loans to U.S. middle-market companies. It is externally managed by its registered investment advisor and affiliate, CION Investment Management, LLC (CIM). CION Investments offers mutual funds and alternative investment solutions, including the CION Ares Diversified Credit Fund. With a focus on innovating through structures, strategies, and partnerships, the company aims to redefine how individual investors build their portfolios.

CION Investment Corporation (CIC)

CIC is managed by its registered investment advisor and affiliate, CION Investment Management, LLC (CIM). CIM is an affiliate of CION Investments, a vertically integrated alternative investment manager and retail distribution platform. CIM has a proven track record of success in US direct lending and strong relationships in the credit and asset management space, providing unique access to deal flow.

CIC's investment strategy focuses on senior secured loans, including first lien, second lien, and unitranche debt. The company targets an average hold of $30 million in investments.

As of October 11, 2024, CIC's portfolio composition included first lien senior secured debt, second lien senior secured debt, collateralized securities & structured products, and floating and fixed-rate investments. The portfolio is diversified across various industries, including healthcare, pharmaceuticals, media, consumer goods, and construction.

CIC provides regular quarterly distributions to its shareholders and is listed on the New York Stock Exchange under the ticker symbol 'CION'.

CION Ares Diversified Credit Fund

As of October 2024, the current distribution rate based on the daily NAV for Class I shares was 9.15%, 8.91% for Class A, 8.16% for Class C, 8.66% for Class L, 8.41% for Class U, 8.41% for Class U-2, and 8.66% for Class W. The fund's expense ratio, when excluding interest payments on borrowed funds, is approximately 4.19%.

CADC has a history of consistent asset growth and strong performance. As of December 31, 2022, the fund had approximately $3.6 billion in total managed assets, and in 2022, the annualized distribution rate for Class I shares increased by over 26%. CION Ares Diversified Credit Fund is distributed through a broad network of RIAs, independent broker-dealers, and wirehouses.

CION's joint venture with Man Group

CION Investments, a leading manager and distributor of alternative investment solutions, has formed a joint venture partnership with Man Group, a global asset manager with $139.5 billion in assets under management. The collaboration will begin with Man Global Private Markets (Man GPM), Man Group's private markets business, which specializes in residential real estate equity and debt.

The joint venture, CION Man Management (CMM), will create unique, scalable, and accessible investment solutions that leverage Man GPM's origination, operational, and asset management expertise, and CION's investment acumen, product management, and distribution experience. CMM will also leverage iCapital's customized technology, services platform, and diligence solutions for financial advisors and their high-net-worth clients seeking access to alternative strategies.

Michael A. Reisner and Mark Gatto, co-CEOs of CION, expressed excitement about the venture, stating that they believe Man Group has the scale, operational experience, and portfolio management expertise needed in a partner in the US residential real estate space. Eric Burl, Head of Man GPM, echoed these sentiments, highlighting CION's track record of delivering innovative alternative investment solutions and their shared commitment to alpha generation, technological innovation, and risk management.

Through this joint venture, CION and Man Group aim to bring private market capabilities to market through innovative, scalable product solutions, meeting the growing client demand for private market solutions.

CION's investment strategy

CION Investment Corporation (CIC) is a publicly-listed business development company (BDC) that primarily provides senior secured loans to U.S. middle-market companies. It is externally managed by its registered investment advisor and affiliate, CION Investment Management, LLC (CIM).

CIM is a vertically integrated alternative investment manager and retail distribution platform. It has a proven track record of success in US direct lending and strong relationships and core partnerships in the credit and asset management space, providing unique access to deal flow.

CIC's primary investment type is senior secured loans, including first lien, second lien, and unitranche debt. The company targets an average hold of $30 million in investments related to acquisitions, leveraged buyouts, and market or product expansion.

CIC's investment strategy is focused and highly selective, aiming to provide investors with access to premier, institutional-style alternative investments through innovative fund structures. The company specializes in alternative investments that have traditionally only been available to institutional investors, with a focus on innovation in structures, strategies, and partnerships.

CIC's investment strategy is designed to help investors achieve their investment goals by creating a more diversified portfolio with strategies that have a lower correlation to traditional investments. The company keeps a constant pulse on the market to spot opportunities and make decisions with the investor's goals and desires in mind.

CION's executive management team

• Two Co-Founders, who are also Co-CEOs of CION Investments and Investment Committee Members
• President and Chief Investment Officer of CION Investment Management
• Managing Director and Chief Financial Officer of CION Investment Management
• Senior Managing Director
• Senior Vice President
• Chief Compliance Officer and Counsel
• Managing Director and Head of Investor Relations

In March 2024, CION appointed Charlie Arestia as Managing Director and Head of Investor Relations.

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