Altegris KKR Commitments Fund.
OPENING THE DOOR TO A NEW ERA IN PRIVATE EQUITY
Altegris invites accredited investors to gain broad exposure to private equity managed by Kohlberg Kravis Roberts & Co. (KKR) via the Altegris KKR Commitments Fund, a continuously offered closed-end fund.
IMPORTANT UPDATEHOW TO INVESTBROAD
EXPOSURE
to KKR
PRIVATE EQUITY
LOWER MINIMUM
INVESTMENT
than TRADITIONAL
PRIVATE EQUITY
1099 TAX
REPORTING
and NO
CAPITAL CALLS
DIVERSIFICATION ACROSS:
STRATEGIES
Investments will be appropriately diversified across strategies, with a bias towards buyout and special situation opportunities.1
INVESTMENT TYPES
Seeks to allocate assets to primary and secondary investments, as well as co-investment opportunities.
VINTAGE YEARS
Investments across a range of vintage years in primary and secondary offerings helps to minimize cash drag often experienced with investments solely in primary offerings.
GEOGRAPHY
Investments will be made in multiple geographic regions including North America, Europe and Asia.
* References herein to the “Fund” or “Altegris KKR Commitments Fund” in each instance refer to the Altegris KKR Commitments Master Fund, unless specified otherwise.
FUND TERMS and CONDITIONS
Investment Objective
Seeks long-term capital appreciation
Investment Minimum
$25,000
Investment Qualifications
Accredited investor eligibility as defined by Rule 501(a) of Regulation D under the Securities Act of 1933, as amended. Generally, individuals with net worth of $1 million (excluding primary residence); entities with $5 million in total assets
Share Repurchases (i.e., Potential Liquidity)
The Investment Adviser will recommend to the Fund's Board of Trustees ("Board") that the Fund offers to repurchase Shares from Shareholders on a quarterly basis, in an amount not to exceed 5% of the Fund’s net asset value (“NAV”), subject to the discretion of the Board to make such tender offer each quarter
Early Repurchase Fee
Any repurchase of Shares from a Shareholder which were held for less than one year will be subject to a 2% of NAV fee on shares repurchased
Subscriptions
Monthly
Distributions
Reinvested, with option to receive in cash at least annually
Fees and Expenses
Management Fee
Class A
1.2% of NAV annual management fee
Class I
1.2% of NAV annual management fee
Distribution Fee
Class A
0.60% of NAV annually
Class I
N/A
Sales Load
Class A
Up to a maximum of 3.5% of the investment amount when shares are purchased
Class I
No load or distribution fee
Total Annual Fund Expenses
Class A
2.78%
Class I
2.15%
Tax Reporting
1099
Registration
Securities Act of 1933 and Investment Company Act of 1940 registered closed-end investment fund
Independent Auditor
Deloitte & Touche LLP
Custodians
SEI Private Trust Company and JP Morgan Chase Bank, N.A.
Administrator
Gemini Fund Services, LLC
There will be no direct or indirect payments from KKR to Altegris or to any third party, pursuant to any agreement or understanding, that are used to offset any expenses of the Fund.
* References herein to the “Fund” or “Altegris KKR Commitments Fund” in each instance refer to the Altegris KKR Commitments Master Fund, unless specified otherwise.
RESOURCES and INSIGHTS
Resources
Monthly Performance Update
Fund Commentary and Activity
Prospectus
SAI
Annual Report*
Semi-Annual Report
Investor Guide
Glossary
Insights
Webinar Replay 2016 Mid Year Review: Adult swimming in an idiosyncratic world. July 2016
Webinar Replay CIO 2016 Macroeconomic Outlook: An idiosyncratic world. January 2016
Webinar Replay Private Equity Update: Positioning private equity in today's world. December 2015
Media
* References herein to the “Fund” or “Altegris KKR Commitments Fund” in each instance refer to the Altegris KKR Commitments Master Fund, unless specified otherwise.
PORTFOLIO HOLDINGS
The Altegris KKR Commitments Fund, as of June 30, 2018, has made the following investments and commitments of capital:
- Acquired interests of Foundation Capital Fund VIII, L.P., Foundation Capital Fund VII, L.P., Foundation Capital Fund VI, L.P., Foundation Capital Fund V, L.P., Foundation Capital Leadership Fund, L.P., Foundation Capital Fund III, L.P. and Charles River Partnership XIII, L.P. in a secondary investment transaction effected June 30, 2018, representing approximately $4.1 million in capital commitments of which approximately 89% had been drawn.
- Acquired interests of KKR China Growth Fund, L.P. and related partnerships in a secondary investment transaction effected as of June 29, 2018, representing approximately $29 million in capital commitments of which approximately 62% had been drawn.
- Committed capital of up to $7.5 million as a primary investment, effected June 22, 2018, in KKR Sigma Co-Invest, L.P. and related partnerships, a consumer-focused co-investment vehicle.
- Acquired interests of Lime Rock Partners IV AF, L.P. and related partnerships in a secondary investment transaction effected as of June 22, 2018, representing approximately $5 million in capital commitments of which approximately 98% had been drawn.
- Committed capital of up to $40 million as a primary investment, effected May 1, 2018, in KKR Real Estate Partners Americas II, L.P. and related partnerships.
- Committed capital of up to $17.5 million as a primary investment, effected February 26, 2018, in KKR Caribou Co-Invest L.P. and related partnerships, a technology-focused private equity co-investment vehicle.
- Committed capital of up to $7.5 million as a primary investment, effected February 26, 2018, in KKR Palo Verde Co-Invest L.P. and related partnerships, an energy-focused private equity co-investment vehicle.
- Contracted to acquire interests in Yorktown Energy Partners VI, VII, VIII, IX and X and related energy-focused limited partnerships in a secondary purchase and sale transaction effected as of January 8, 2018, representing approximately $3.67 million in capital commitments, of which approximately 99% had been drawn.
- Acquired interests in Menlo Ventures IX, L.P., Menlo Ventures X, L.P. and Menlo Ventures XI, L.P. and related partnerships in a secondary investment transaction effected as of December 29, 2017, representing approximately $8.1 million in capital commitments, of which approximately 99% had been drawn.
- Committed capital of up to $10 million as a primary investment, effected October 3, 2017, in KKR Byzantium Infrastructure Co-Invest L.P. and related partnerships, a private equity co-investment vehicle.
- Committed capital of up to $10 million as a primary investment, effected September 29, 2017, in Warburg Pincus XI (Asia) L.P. and related partnerships, an Asia-focused co-investment vehicle.
- Acquired interests of KKR Asian Fund II Private Investors Offshore, L.P. and related partnerships in a secondary investment transaction effected as of September 29, 2017, representing approximately $3.5 million in capital commitments of which approximately 47% had been drawn.
- Acquired interests of SFC Energy Partners I-A L.P. and related partnerships in a secondary investment transaction effected as of September 29, 2017, representing approximately $20 million in capital commitments of which approximately 99% had been drawn.
- Committed capital of up to $12.5 million as a primary investment, effected August 4, 2017, in KKR Health Care Growth Strategies Fund L.P. and related partnerships.
- Committed capital of approximately $10 million as a primary investment, effected June 30, 2017, in HPH Specialized International Fund 1, LP, a health and wellness industry focused, private equity co-investment vehicle.
- Committed capital of approximately $15 million as a primary investment, effected June 7, 2017, in Uno Co-Invest LP, a KKR-sponsored private equity co-investment vehicle.
- Acquired interests of KKR Lending Partners II LP and related partnerships in a secondary investment transaction effected as of March 31, 2017, representing approximately $10 million in capital commitments of which approximately 64% had been drawn.
- Committed capital of up to $60 million as a primary investment, effected March 31, 2017, in the KKR Asian Fund III LP and related partnerships.
- Committed capital of up to $1.34 million as a primary investment, effected March 31, 2017, in Oak Hill Capital Partners IV (Offshore) LP and related partnerships.
- Acquired interests in Oak Hill Capital Partners III LP, Oak Hill Special Opportunity Fund (Offshore II) LTD, and related partnerships and co-investment vehicles in a secondary transaction representing, as of March 17, 2017, approximately $5.37 million in capital commitments of which approximately 92% had been drawn.
- As of March 1, 2017, increased by $10 million its existing capital commitment to KKR Americas Fund XII LP and related partnerships, resulting in a total capital commitment to that Fund as a primary investment of up to $70 million.
- As of January 1, 2017, acquired additional interests of KKR 2006 Fund LP and related partnerships in a secondary investment transaction representing approximately $30 million in additional capital commitments of which approximately 98% had been drawn.
- Acquired interests of KKR Asian Fund LP and related partnerships in a secondary investment transaction representing, as of January 1, 2017, approximately $25 million in capital commitments of which approximately 97% had been drawn.
- Committed capital of approximately $7 million as a primary investment, effected August 29, 2016, in KKR Element Co-Invest LP, a private equity co-investment vehicle.
- Acquired interests in Orchid Asia III, LP, in a secondary transaction effective as of June 30, 2016, representing approximately $5 million in capital commitments of which approximately 97% had been drawn.
- Acquired interests in Baring Asia Private Equity Fund III, LP1, in a secondary transaction effective as of June 30, 2016, representing approximately $20.3 million in capital commitments of which approximately 84% had been drawn.
- Committed capital of up to $60 million as a primary investment, effected June 30, 2016, in the KKR Americas Fund XII LP and related partnerships.
- Committed capital up to approximately $1.06 million as a primary investment, effective March 10, 2016, in Bridge Growth Partners (Parallel) LP, a private equity co-investment vehicle.
- Committed capital of approximately $1.9 million as a primary investment, effected March 1, 2016, in KKR Blue Co-Invest LP, a private equity co-investment vehicle.
- Acquired interests of Salient Solutions, LLC, a private equity co-investment vehicle, in a secondary transaction effective February 10, 2016, representing a capital commitment of approximately $1.06 million.
- Acquired interests of KKR European Fund III, Limited Partnership and related partnerships in secondary investment transactions representing, as of January 1, 2016, approximately $42 million in capital commitments of which approximately 55% had already been drawn and applied to investments in 10 underlying portfolio companies.
- Acquired interests of KKR 2006 Fund LP and related partnerships in a secondary investment transaction representing, as of January 1, 2016, approximately $38 million in capital commitments of which approximately 96% had already been drawn and applied to investments in 17 underlying portfolio companies.
- Committed capital of up to $5 million as a primary investment, effected December 17, 2015, in the KKR European Fund IV LP and related partnerships.
- Acquired interests of KKR North America Fund XI LP and related partnerships in a secondary investment transaction representing, as of November 1, 2015, approximately $39 million in capital commitments of which approximately 50% had already been drawn and applied to investments in 20 underlying portfolio companies.
The Fund’s estimate of net assets as of August 1, 2018 is $396,000,000. This estimate reflects the value of the Fund’s assets as of the date of its most recent published Net Asset Value, plus the dollar amount of subscription proceeds raised since that date.
Subscription proceeds reflect the amount of Fund Shares purchased, but not proceeds attributable to sales loads, if any, paid at the time Shares are purchased. A portion of proceeds raised is applied toward the payment of fees and expenses of the Fund, as described in the Prospectus. Holding(s) referenced above exclude cash. Past performance is no guarantee of future results.
* References herein to the “Fund” or “Altegris KKR Commitments Fund” in each instance refer to the Altegris KKR Commitments Master Fund, unless specified otherwise.
HISTORICAL RETURNS, DISTRIBUTIONS and NAV
Monthly Returns (%) | Altegris KKR Commitments Fund (08/01/15–08/31/18)
| Class A | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD | S&P 500 TR YTD |
MSCI ACWI YTD |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2018 | -0.36% | -0.73% | 0.44% | 0.44% | 0.51% | 2.81% | 0.07% | 0.21% | 3.41% | 9.94% | 3.38% | ||||
| 2017 | 0.00% | 0.75% | 0.45% | 0.82% | 0.52% | 2.68% | -0.14% | -0.22% | 1.38% | 0.00% | -0.65% | 2.76% | 8.62% | 21.83% | 23.97% |
| 2016 | -2.08% | -0.82% | 4.54% | -1.03% | 0.56% | 2.85% | 0.23% | 0.69% | 2.83% | 0.15% | 0.22% | 2.54% | 11.00% | 11.96% | 7.86% |
| 2015 | -0.08% | -0.17% | -0.17% | -0.25% | 4.70% | 4.00% | -1.90% | -5.72% |
| Class I | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD | S&P 500 TR YTD |
MSCI ACWI YTD |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2018 | -0.31% | -0.68% | 0.48% | 0.48% | 0.61% | 2.83% | 0.10% | 0.27% | 3.81% | 9.94% | 3.38% | ||||
| 2017 | 0.11% | 0.82% | 0.50% | 0.88% | 0.59% | 2.74% | -0.14% | -0.14% | 1.44% | 0.00% | -0.58% | 2.82% | 9.37% | 21.83% | 23.97% |
| 2016 | -2.03% | -0.70% | 4.69% | -0.98% | 0.61% | 2.91% | 0.33% | 0.70% | 2.91% | 0.21% | 0.25% | 2.60% | 11.88% | 11.96% | 7.86% |
| 2015 | -0.04% | -0.04% | -0.16% | -0.16% | 4.78% | 4.36% | -1.90% | -5.72% |
Past performance is not indicative of future results. Investment returns and principal value of an investment will fluctuate, therefore, you may have a gain or loss when you redeem your shares. Monthly returns are net of Fund expenses and based on NAV at month-end.
Annualized Statistics†
Returns for periods less than one year are cumulative rather than annualized (08/01/15–08/31/18)
| Annualized Standard Deviation | Annualized Total Return | |
|---|---|---|
| Altegris KKR Commitments Fund: Class A (NAV) | 5.15% | 8.78% |
| Altegris KKR Commitments Fund: Class A (max load)‡ | 5.62% | 7.52% |
| Altegris KKR Commitments Fund: Class I | 5.17% | 9.57% |
| S&P 500 Total Return Index | 10.05% | 13.33% |
| MSCI All-Country World Index | 10.46% | 8.97% |
† The inception date of both the Fund's Class A shares (including predecessor feeder fund shares), and Class I Shares (as re-classified), is 08/01/2015.
‡ Class A shares are subject to a maximum sales load of 3.5%. Class I shares have no sales load.
The total annual fund expense ratio, gross of any fee waivers or expense reimbursements, is 2.78% for Class A shares and 2.15% for Class I shares. The Adviser has agreed to a cap on specified expenses not to exceed 0.55% for Class A shares and for Class I shares. See the Prospectus for more information.
The performance data quoted represents past performance, which is no guarantee of future results. Current performance may be lower or higher than the performance data shown above. Investment return and principal value will fluctuate, so that shares, when sold, may be worth more or less than their original cost. The returns reflect the expense limitation and reimbursement, without which, the performance would have been lower. A Fund's performance, especially for short periods of time, should not be the sole factor in making your investment decision.
For the period from the Fund's inception through May 31, 2016, the returns and expenses of Class A shares reflect the performance of the prior feeder fund; and the returns of Class I shares reflect the performance of the Fund prior to its issuance of multiple share classes and reclassification of existing shares. From June 1, 2016 forward, the returns reflect performance of Class A and Class I shares, respectively, of the Altegris KKR Commitments Fund.
S&P 500 Total Return Index. The total return version of S&P 500 index; generally representative of certain portions of the U.S. equity markets. Returns assume reinvestment of dividends. The index shown is for general market comparisons and is not meant to represent any actual fund. An index is unmanaged and not available for direct investment.
MSCI All-Country World Index. The MSCI ACWI captures large and mid cap representation across 23 Developed Markets and 24 Emerging Markets countries. With more than 2,400 constituents, the index covers approximately 85% of the global investable equity opportunity set.
Standard deviation is a statistical measure of how consistent returns are over time; a lower standard deviation indicates historically less volatility.
Net Asset Value | As of 08/31/18
| Altegris KKR Commitments Fund: Class A | $14.01 |
| Altegris KKR Commitments Fund: Class I | $29.84 |
Past performance is no guarantee of future results. Current performance may be higher or lower than the data shown. The net asset value will equal, unless otherwise noted, the value of the total assets of the Fund, less all of its liabilities, including accrued fees and expenses, each determined as of the date specified.
KKR is neither a sponsor, promoter, adviser nor affiliate of the Fund. There is no agreement or understanding between KKR and Altegris or StepStone regarding the management of the investment program of the Fund.
Capital Gains
| Record Date | Ex-Date | Payable Date | Reinvestment Price (NAV) | Short-Term | Long-Term | |
|---|---|---|---|---|---|---|
| Altegris KKR Commitments Fund: Class A | 12/1/2016 6/1/2017 12/1/2017 6/1/2018 |
12/2/2016 6/2/2017 12/4/2017 6/4/2018 |
12/2/2016 6/21/2017 12/20/2017 6/25/2018 |
$12.94 $13.44 $13.44 $13.59 |
$0.0021 N/A N/A N/A |
$0.5663 $0.1703 $0.4116 $0.26 |
| Altegris KKR Commitments Fund: Class I | 12/1/2016 6/1/2017 12/1/2017 6/1/2018 |
12/2/2016 6/2/2017 12/4/2017 6/4/2018 |
12/2/2016 6/21/2017 12/20/2017 6/25/2018 |
$27.25 $28.42 $28.50 $28.91 |
$0.0043 N/A N/A N/A |
$1.1932 $0.36 $0.8727 $0.56 |
Fund distributions will vary depending upon market conditions and number of shares outstanding. Past distributions are no guarantee of future distributions or performance results.
This information is not intended to cover the complexities of a shareholder's individual tax situation. Because tax laws vary among states, you should consult your tax advisor about the specific rules in the state(s) in which you pay income taxes.
Record date is the date by which a shareholder must own fund shares to receive the distribution. Ex-date is the date on which a shareholder who purchases fund shares will not be eligible to receive the distribution. Payable date is the date on which a shareholder is paid the distribution.
1 While the portfolio composition that has been developed by Altegris Advisors (the Fund's investment adviser) and StepStone Group (the Fund's sub-adviser) reflects their assessment of the relative attractiveness of sub-sectors within the context of an appropriately diversified portfolio, given the percentage of assets that will be invested in securities issued by a single issuer (KKR), the Fund will be a non-diversified fund under the Investment Company Act of 1940.
A portion of the Fund's assets may be invested in private equity or Investment Funds which are not managed by or affiliated with KKR; however, this allocation is not anticipated to be material to the Fund's overall strategy.
Diversification does not ensure profit or protect against loss in a positive or declining market. There is no guarantee that any investment will achieve its objectives, generate profits, or avoid losses. There can be no assurance that all investment types will be available, will be consistent with the Fund's objective, will satisfy the Investment Adviser's due diligence considerations, or will be selected for the Fund.
THE CASE FOR PRIVATE EQUITY
IMPORTANT UPDATEHOW TO INVESTPOTENTIAL BENEFITS:
DIVERSIFICATION
Including private equity in a balanced portfolio can improve its overall diversification.
FOCUS ON VALUE CREATION
Active private equity firms partner with companies' management team with the goal of achieving growth and improving productivity.
SEEKING TO CREATE SUSTAINABLE VALUE
May incorporate environmental, social and governance factors into decision-making processes.
KKR is neither a sponsor, promoter, adviser nor affiliate of the Altegris KKR Commitments Fund. There is no agreement or understanding between KKR and Altegris or StepStone regarding the management of the investment program of the Fund.
* References herein to the “Fund” or “Altegris KKR Commitments Fund” in each instance refer to the Altegris KKR Commitments Master Fund, unless specified otherwise.
ONE INVESTMENT TEAM, ONE INVESTMENT CULTURE.
Founded in 1976 by Henry Kravis and George Roberts, Kohlberg Kravis Roberts & Co. LP (KKR) has evolved through four decades of global economic cycles and changes and grown into a leading global investment firm with approximately $130 billion in assets under management.†
INDUSTRY EXPERTISE
KKR has completed over 380 private equity transactions1 with approximately $531 billion of total enterprise value in approximately 21 industries.
DISCIPLINED INVESTMENT PROCESS
Each investment decision is predicated on a clear thesis, utilizing KKR's resources and knowledge, which includes working with portfolio company senior managers to help identify and implement operational improvements.
PROPRIETARY SOURCING
Experienced and dedicated sourcing professionals utilize the full network comprised of long-standing relationships to find opportunities.
VALUE ENHANCEMENT
KKR invests only when it believes a competitive advantage exists in sourcing, analysis or diligence findings.
There is no guarantee that any investment will achieve its objectives, generate profits or avoid losses.
† As of December 31, 2016.
References to “assets under management” or “AUM” represent the assets managed by KKR or its strategic partners as to which KKR is entitled to receive a fee or carried interest (either currently or upon deployment of capital) and general partner capital. KKR calculates the amount of AUM as of any date as the sum of: (i) the fair value of the investments of KKR's investment funds; (ii) uncalled capital commitments from these funds, including uncalled capital commitments from which KKR is currently not earning management fees or carried interest; (iii) the fair value of investments in KKR's co-investment vehicles; (iv) the par value of outstanding CLOs (excluding CLOs wholly-owned by KKR); (v) KKR's pro-rata portion of the AUM managed by strategic partnerships in which KKR holds a minority ownership interest and (vi) the fair value of other assets managed by KKR. The pro-rata portion of the AUM managed by strategic partnerships is calculated based on KKR's percentage ownership interest in such entities multiplied by such entity's respective AUM. KKR's calculation of AUM may differ from the calculations of other asset managers and, as a result, KKR's measurements of its AUM may not be comparable to similar measures presented by other asset managers. KKR's definition of AUM is not based on the definitions of AUM that may be set forth in agreements governing the investment funds, vehicles or accounts that it manages and is not calculated pursuant to any regulatory definitions.
1 Transactions include over 280 investments in portfolio companies and 100 follow-on investments in these companies.
KKR information is provided by KKR or derived from materials approved for use by KKR and is believed to be accurate and reliable. Altegris Advisors cannot guarantee the accuracy of, or be responsbile for the timeliness, completeness or suitability for use of such information. Information is as of December 31, 2016 unless otherwise noted. KKR is neither a sponsor, promoter, adviser nor affiliate of the Altegris KKR Commitments Fund.
* References herein to the “Fund” or “Altegris KKR Commitments Fund” in each instance refer to the Altegris KKR Commitments Master Fund, unless specified otherwise.
COMBINING THE TALENT OF A PREMIER ALTERNATIVE INVESTMENT PROVIDER AND PROVEN PRIVATE EQUITY EXPERTS.
IMPORTANT UPDATEHOW TO INVESTInvestment Adviser
ALTEGRIS ADVISORS, LLC
As the Fund's investment adviser, Altegris Advisors determines the final investment selection and portfolio construction.
- Veteran alternative investment expert and an industry leader in 1940 Act alternatives
- Institutional caliber research team focused solely on alternative Investments
- Extensive experience in portfolio construction and allocation
Sub-Adviser
STEPSTONE GROUP LP
As the Fund's sub-adviser, StepStone Group recommends primary, secondary, and co-investment opportunities, and advises on portfolio construction.
- Information and sourcing advantages provided by diverse investment activities
- Oversees more than $100 billion in private capital allocations, including approximately $28 billion of assets under management†
- Over 260 professionals on five continents†
There is no agreement or understanding between KKR and Altegris or StepStone regarding the management of the investment program of the Fund. Altegris Advisors and StepStone Group are not affiliated.
† As of December 2016.
* References herein to the “Fund” or “Altegris KKR Commitments Fund” in each instance refer to the Altegris KKR Commitments Master Fund, unless specified otherwise.
INSIGHTS
PRESS RELEASES
IN THE NEWS
PLEASE DIRECT MEDIA INQUIRIES TO:
Josh Passman
Prosek Partners
(212) 279.3115 ext. 203
jpassman@prosek.com
Maria Jose Gonzalez
Prosek Partners
(212) 279.3115 ext. 260
mjgonzalez@prosek.com or
pro-altegris@prosek.com
The information provided is not a complete analysis of the market, industry, sector, or security discussed. The statements included are the views and opinions of the respective speaker or author as of the date specified, and these views may change as subsequent market conditions arise, and may also differ from other Altegris associates or affiliates. The assessment of a particular sector, investment or strategy is not intended as a forecast, research, or recommendation to buy or sell any security. Videos, webinars, and reprints are current as of the date they were posted and have not been updated since that time.
* References herein to the “Fund” or “Altegris KKR Commitments Fund” in each instance refer to the Altegris KKR Commitments Master Fund, unless specified otherwise.