Fund Overview
Seeks to provide attractive income to investors via short-term lending arrangements with digital asset entities.
- Provides high-yield income exposure to fast-growing crypto asset class.
- Potential lower volatility as compared to direct digital asset exposure.
- Simplified approach that alleviates the operational burden of direct digital assets lending.
The investment objective of the Partnership is to provide attractive income generally through short-term lending arrangements with borrowers in the digital asset industry. Borrowers in the digital asset industry include, but are not limited to, digital asset platforms, exchanges and businesses. In seeking to achieve its investment objective, the Partnership will actively manage lending arrangements by allocating loans to various borrowers in the digital asset industry based on the Manager’s review of lending terms such as fixed term vs. open term, expected yield, maturity and other factors. The Partnership will engage in the lending of currency constituting legal tender ("fiat currency"), primarily the U.S. dollar, and in the lending of digital assets that are pegged to and/or backed by, or algorithmically targeted to, a fiat currency ("stablecoins"), such as the U.S. dollar, and are designed to seek to have a stable value over time.
Fund Details
Inception: December 2021
Management Fee: 1.00%
Performance Fee / Redemption Fee: None
Min. Investment: $1,000,000
Additional Investment: $250,000
Investor Type: Accredited Investors
Subscriptions: Monthly
Redemptions: Quarterly (with 30 days notice)*
IMPORTANT RISKS
An investment in the Fund involves a significant degree of risk, and, therefore, should be undertaken only by investors capable of evaluating the risks of the Fund and bearing such risks. In addition, there are significant actual and potential conflicts of interests that may arise in connection with the Fund that investors should be aware of. The existence of any risk or an actual conflict may have an adverse impact on the performance of the Fund and, thus, the return to Limited Partners. Prospective investors in the Fund should carefully consider the risk factors in connection with an investment in the Fund and should consult their own legal, tax and financial advisors as to all of these risks and an investment in the Fund generally. The Interests are suitable investments only for sophisticated investors for whom an investment in the Fund does not constitute a complete investment program and who fully understand, and are willing to assume, and have the financial resources to withstand, the risks involved in the Fund's specialized investment program and to bear the potential loss of their entire investment in the Interests. Please see important definitions and disclosures below.
The General Partner may suspend or limit the right of all Limited Partners to make withdrawals under certain circumstances as laid out in the Private Placement Memorandum.
Related Resources
Important Definitions & Disclosures
* Redemptions may be suspended under certain circumstances.
VanEck New Finance Income Fund, LP seeks to provide attractive income generally through short-term lending arrangements with borrowers in the digital asset industry. The ICE US Fallen Angel High Yield Constrained Index is a subset of the ICE BofA US High Yield Index and includes securities that were rated investment grade at time of issuance. The ICE BofA US High Yield Index tracks the performance of US dollar denominated below investment grade rated corporate debt publicly issued in the US domestic market. The S&P BDC Index is designed to track leading business development companies that trade on major U.S. exchanges.
The Fund is available to Accredited Investors Only. Please carefully read the Private Placement Memorandum before investing.
An investment in the Fund is subject to risks which include among others, risks associated with loans and unsecured obligations, stablecoins, stablecoin technology, the digital asset market, preferred and debt securities, dependence on the internet, tax and market risk, investment concentration, lack of regulatory protections and future regulatory developments could affect the viability and expansion of the use of the Fund.
Please contact us at investorrelations@vaneck.com for the Private Placement Memorandum which contains additional risk information.
Your individual performance may be different and will be reflected in your monthly investor statement. It is important to rely on the monthly investor statement that you receive from the fund’s Administrator, as the statement will indicate your individual performance. An individual investor’s performance may differ, perhaps materially, from the performance results set forth herein due to a number of factors, including (a) participation in new issues, (b) timing of individual contributions/subscriptions and withdrawals/redemptions, (c) any accumulated loss carryforwards and (d) different expenses, fees and other charges paid by certain investors.
The Fund’s investment program is speculative and entails substantial risks. There can be no assurance that the Fund’s investment objective will be achieved.
Cryptocurrency is a digital representation of value that functions as a medium of exchange, a unit of account, or a store of value, but it does not have legal tender status. Cryptocurrencies are sometimes exchanged for U.S. dollars or other currencies around the world, but they are not generally backed or supported by any government or central bank. Their value is completely derived by market forces of supply and demand, and they are more volatile than traditional currencies. The value of cryptocurrency may be derived from the continued willingness of market participants to exchange fiat currency for cryptocurrency, which may result in the potential for permanent and total loss of value of a particular cryptocurrency should the market for that cryptocurrency disappear. Cryptocurrencies are not covered by either FDIC or SIPC insurance. Legislative and regulatory changes or actions at the state, federal, or international level may adversely affect the use, transfer, exchange, and value of cryptocurrency.
Investing in cryptocurrencies comes with a number of risks, including volatile market price swings or flash crashes, market manipulation, and cybersecurity risks. In addition, cryptocurrency markets and exchanges are not regulated with the same controls or customer protections available in equity, option, futures, or foreign exchange investing. There is no assurance that a person who accepts a cryptocurrency as payment today will continue to do so in the future.
Investors should conduct extensive research into the legitimacy of each individual cryptocurrency, including its platform, before investing. The features, functions, characteristics, operation, use and other properties of the specific cryptocurrency may be complex, technical, or difficult to understand or evaluate. The cryptocurrency may be vulnerable to attacks on the security, integrity or operation, including attacks using computing power sufficient to overwhelm the normal operation of the cryptocurrency’s blockchain or other underlying technology. Some cryptocurrency transactions will be deemed to be made when recorded on a public ledger, which is not necessarily the date or time that a transaction may have been initiated.
- Investors must have the financial ability, sophistication and willingness to bear the risks of an investment and a potential total loss of their entire investment in cryptocurrency.
- An investment in cryptocurrency is not suitable or desirable for all investors.
- Cryptocurrency has limited operating history or performance.
- Fees and expenses associated with a cryptocurrency investment may be substantial.
There may be risks posed by the lack of regulation for cryptocurrencies and any future regulatory developments could affect the viability and expansion of the use of cryptocurrencies. Investors should conduct extensive research before investing in cryptocurrencies.
VANECK ABSOLUTE RETURN ADVISERS CORPORATION (‘VEARA”), THE INVESTMENT MANAGER OF THE FUND, IS A MEMBER OF NFA AND IS SUBJECT TO NFA’S REGULATORY OVERSIGHT AND EXAMINATIONS. VEARA HAS ENGAGED OR MAY ENGAGE IN UNDERLYING OR SPOT VIRTUAL CURRENCY TRANSACTIONS IN THE FUND. ALTHOUGH NFA HAS JURISDICTION OVER VEARA, YOU SHOULD BE AWARE THAT NFA DOES NOT HAVE REGULATORY OVERSIGHT AUTHORITY FOR UNDERLYING OR SPOT MARKET VIRTUAL CURRENCY PRODUCTS OR TRANSACTIONS OR VIRTUAL CURRENCY EXCHANGES, CUSTODIANS OR MARKETS. YOU SHOULD ALSO BE AWARE THAT GIVEN CERTAIN MATERIAL CHARACTERISTICS OF THESE PRODUCTS, INCLUDING LACK OF A CENTRALIZED PRICING SOURCE AND THE OPAQUE NATURE OF THE VIRTUAL CURRENCY MARKET, THERE CURRENTLY IS NO SOUND OR ACCEPTABLE PRACTICE FOR NFA TO ADEQUATELY VERIFY THE OWNERSHIP AND CONTROL OF A VIRTUAL CURRENCY OR THE VALUATION ATTRIBUTED TO A VIRTUAL CURRENCY BY VEARA.
Information provided by Van Eck is not intended to be, nor should it be construed as financial, tax or legal advice. It is not a recommendation to buy or sell an interest in cryptocurrencies.
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