Variant Alternative Income Fund
Schedule of Investments
July 31, 2022
| Shares/ Units |
First Acquisition Date | Cost | Fair Value | Percent of Net Assets |
||||||||||||||
| Investments in private investment companies - 30.0% | ||||||||||||||||||
| Litigation Finance | ||||||||||||||||||
| EAJF ESQ FUND LP (a)(e)(f) | - | 5/26/2022 | $ | 27,500,000 | $ | 28,054,208 | 1.4 | |||||||||||
| Equal Access Justice Fund LP (a)(e)(f) | - | 3/30/2021 | 45,000,000 | 47,251,822 | 2.3 | |||||||||||||
| Series 4 - Virage Capital Partners LP (a)(e)(f) | - | 9/1/2018 | 980,599 | 1,584,360 | 0.1 | |||||||||||||
| Series 6 - Virage Capital Partners LP (a)(e)(f) | - | 10/31/2019 | 16,000,000 | 20,475,474 | 1.0 | |||||||||||||
| Virage Recovery Fund (Cayman) LP (a)(b)(g) | 3,828,921 | 8/6/2019 | 15,313,446 | 25,071,371 | 1.2 | |||||||||||||
| 104,794,045 | 122,437,235 | 6.0 | ||||||||||||||||
| Portfolio Finance | ||||||||||||||||||
| C L Levi Co-Invest, L.P. (a)(e)(f) | - | 6/27/2022 | 7,500,000 | 7,914,811 | 0.4 | |||||||||||||
| Crestline Portfolio Financing Fund Offshore B, L.P. and Subsidiary (a)(e)(f) | - | 4/25/2018 | 1,588,252 | 1,730,808 | 0.1 | |||||||||||||
| Crestline Portfolio Financing Fund II (US), L.P. (a)(e)(f) | - | 8/26/2021 | 657,605 | 896,648 | 0.0 | |||||||||||||
| Crestline Praeter, L.P. - Zoom (a)(e)(f) | - | 12/26/2019 | 2,593,168 | 3,235,673 | 0.2 | |||||||||||||
| 12,339,025 | 13,777,940 | 0.7 | ||||||||||||||||
| Real Estate Debt | ||||||||||||||||||
| Oak Harbor Capital NPL VII, LLC (a)(e)(f) | - | 3/1/2019 | 9,062,934 | 11,998,590 | 0.6 | |||||||||||||
| Quiet Credit I LLC (a)(e)(f) | - | 7/15/2021 | 6,250,000 | 6,314,354 | 0.3 | |||||||||||||
| Setpoint Residential Fintech Fund LP (a)(e)(f) | - | 2/4/2022 | 12,677,105 | 12,763,239 | 0.6 | |||||||||||||
| 27,990,039 | 31,076,183 | 1.5 | ||||||||||||||||
| Real Estate Equity | ||||||||||||||||||
| ArrowMark Commercial Real Estate Partners, LLC (a)(e)(f) | 12/20/2021 | 10,000,000 | 11,118,241 | 0.5 | ||||||||||||||
| Montreux Healthcare Fund PLC (a)(f) | 48,220 | 2/1/2018 | 66,291,144 | 73,449,566 | 3.6 | |||||||||||||
| Prime Storage Fund II (Cayman), LP (a)(e)(f) | - | 11/20/2017 | 996,147 | 1,458,528 | 0.1 | |||||||||||||
| 77,287,291 | 86,026,335 | 4.2 | ||||||||||||||||
| Royalties | ||||||||||||||||||
| MEP Capital II LP (a)(e)(f) | - | 11/27/2020 | 8,400,473 | 9,255,870 | 0.5 | |||||||||||||
| MEP Capital II LP - Co-investment Sound Royalties (a)(e)(f) | - | 8/3/2021 | 2,000,000 | 2,279,115 | 0.1 | |||||||||||||
| MEP Capital III LP (a)(e)(f) | - | 11/1/2021 | 11,351,167 | 11,917,700 | 0.6 | |||||||||||||
| MEP Capital III LP - Co-investment Culture Works (a)(e)(f) | - | 11/3/2021 | 2,000,000 | 2,274,624 | 0.1 | |||||||||||||
| MEP Capital III, L.P. - NGL (a)(e)(f) | - | 5/3/2022 | 8,000,000 | 8,261,938 | 0.4 | |||||||||||||
| 31,751,640 | 33,989,247 | 1.7 | ||||||||||||||||
| Secondaries | ||||||||||||||||||
| Armadillo Financial Fund LP (a)(e)(f) | - | 12/28/2018 | 55,955 | 8,254 | 0.0 | |||||||||||||
| CAMPBELL OPPORTUNITY TIMBER FUND-A, L.P. (a)(e)(f) | - | 11/1/2021 | 135,476 | 894,775 | 0.0 | |||||||||||||
| North Haven Offshore Infrastructure Partners A L.P. (a)(e)(f) | - | 7/18/2019 | 1,566,729 | 1,450,381 | 0.1 | |||||||||||||
| PWP Asset Based Income ASP Fund (a)(e)(f) | - | 3/29/2019 | 916,560 | 1,119,444 | 0.1 | |||||||||||||
| Taiga Special Opportunities LP (a)(f) | 26,272,686 | 4/22/2022 | 20,334,328 | 25,687,909 | 1.3 | |||||||||||||
| Thor Urban Property Fund II Liquidating Trust (a)(f) | 35,695 | 12/30/2019 | 4,161,214 | 315,514 | 0.0 | |||||||||||||
| 27,170,262 | 29,476,277 | 1.5 | ||||||||||||||||
| Specialty Finance | ||||||||||||||||||
| Atalaya Equipment Leasing Feeder Evergreen LP (a)(e)(f) | - | 5/23/2022 | 16,053,750 | 16,377,014 | 0.8 | |||||||||||||
| BSRF Tax-Exempt LLC(a)(e)(f) | 5/17/2022 | 20,000,000 | 20,043,422 | 1.0 | ||||||||||||||
| CoVenture - Amzn Credit Opportunities Fund LP (a)(e)(f) | - | 3/11/2021 | 30,573,720 | 31,443,835 | 1.6 | |||||||||||||
| CoVenture Credit Opportunities Partners Fund LP (a)(e)(f) | - | 2/28/2020 | 20,000,000 | 20,737,598 | 1.0 | |||||||||||||
| CoVenture - No1 Credit Opportunities Fund LLC (A-2 Series) (a)(e)(f) | - | 2/5/2021 | 3,000,000 | 3,033,945 | 0.1 | |||||||||||||
| CoVenture - No1 Credit Opportunities Fund LLC (A-3 Series) (a)(e)(f) | - | 7/12/2021 | 7,500,000 | 7,574,753 | 0.4 | |||||||||||||
| CoVenture - No1 Credit Opportunities Fund LLC (a)(e)(f) | - | 12/12/2019 | 1,000,000 | 1,012,341 | 0.1 | |||||||||||||
| DelGatto Diamond Fund QP, LP (a)(e)(f) | - | 10/3/2019 | 18,750,000 | 23,031,394 | 1.1 | |||||||||||||
| OHPC LP Founders Class Interest 1.25% (a)(e)(f) | - | 5/27/2021 | 10,899,490 | 11,025,234 | 0.5 | |||||||||||||
| OHP II LP (a)(e)(f) | - | 3/7/2019 | 3,412,361 | 3,449,920 | 0.2 | |||||||||||||
| Rivonia Road Fund LP (a)(e)(f) | 7/29/2022 | 6,000,000 | 6,005,834 | 0.3 | ||||||||||||||
| Silverpeak Special Situations Lending Onshore Fund LP (a)(e)(f) | - | 10/19/2021 | 5,387,660 | 6,011,336 | 0.3 | |||||||||||||
| Sound Point Discovery Fund LLC (a)(e)(f) | - | 3/31/2022 | 10,000,000 | 10,285,618 | 0.5 | |||||||||||||
| Turning Rock Fund I LP (a)(e)(f) | - | 11/29/2019 | 6,366,678 | 7,136,847 | 0.4 | |||||||||||||
| Turning Rock Fund II LP (a)(e)(f) | - | 12/29/2021 | 9,252,244 | 9,405,132 | 0.5 | |||||||||||||
| Upper90 Fund III, LP(a)(e)(f) | - | 7/28/2022 | 1,000,000 | 1,001,615 | 0.0 | |||||||||||||
| 169,195,903 | 177,575,838 | 8.8 | ||||||||||||||||
| Transportation Finance | ||||||||||||||||||
| Aero Capital Solutions Fund, LP (a)(e)(f) | - | 1/17/2019 | 1,666,534 | 1,799,225 | 0.1 | |||||||||||||
| Aero Capital Solutions Fund II, LP (a)(e)(f) | - | 9/16/2019 | 32,493,846 | 42,511,253 | 2.1 | |||||||||||||
| Aero Capital Solutions Feeder Fund III, LP (a)(e)(f) | - | 9/13/2021 | 30,809,252 | 38,050,440 | 1.9 | |||||||||||||
| American Rivers Fund, LLC (a)(e)(f) | - | 5/2/2019 | 22,972,826 | 27,260,355 | 1.3 | |||||||||||||
| Hudson Transport Real Asset Fund LP (a)(e)(f) | - | 8/31/2018 | 1,294,390 | 1,624,809 | 0.1 | |||||||||||||
| ITE Rail Fund, L.P. (a)(e)(f) | - | 5/25/2022 | 2,060,549 | 2,084,594 | 0.1 | |||||||||||||
| 91,297,397 | 113,330,676 | 5.6 | ||||||||||||||||
| Total investments in private investment companies | 541,825,602 | 607,689,731 | 30.0 | |||||||||||||||
Variant Alternative Income Fund
Schedule of Investments
July 31, 2022
| Shares/ Units |
First Acquisition Date | Principal | Fair Value | Percent of Net Assets |
||||||||||||||
| Investments in credit facilities - 51.5% | ||||||||||||||||||
| Litigation Finance | ||||||||||||||||||
| C CUBED CAPITAL PARTNERS LLC, 14.00%, due 4/30/2025 (a)(b) | - | 4/18/2022 | 32,000,000 | 32,000,000 | 1.6 | |||||||||||||
| Experity Ventures, LLC, 13.00%, due 11/4/2026 (a)(b) | - | 11/10/2021 | 12,377,036 | 12,377,036 | 0.6 | |||||||||||||
| Kerberos Capital Management and SPV I, 17.00%, due 8/16/2024 (a)(b) | - | 12/29/2018 | 52,771,706 | 52,771,706 | 2.6 | |||||||||||||
| Kerberos Capital Management and SPV - (Luckett), 19.00%, due 8/16/2024 (a)(b) | - | 1/29/2020 | 8,282,200 | 8,282,200 | 0.4 | |||||||||||||
| Kerberos Capital Management SPV I LLC (Pulvers), 20.00%, due 8/16/2024 (a)(b) | - | 11/19/2020 | 10,729,963 | 10,729,963 | 0.5 | |||||||||||||
| Kerberos Capital Management SPV V,LLC, 15.00%, due 5/17/2026 (a)(b) | - | 5/17/2022 | 20,475,000 | 20,475,000 | 1.0 | |||||||||||||
| Legal Capital Products, LLC, 13.00%, due 10/7/2026 (a)(b) | - | 10/7/2021 | 11,535,993 | 11,535,993 | 0.6 | |||||||||||||
| 148,171,898 | 148,171,898 | 7.3 | ||||||||||||||||
| Portfolio Finance | ||||||||||||||||||
| BA Tech Master, LP, 19.50%, due 10/3/2023 (a)(b) | 10/2/2018 | 5,154,653 | 5,154,653 | 0.3 | ||||||||||||||
| Cirrix Finance, LLC, 15.00%, due 11/4/2022 (a)(b) | 11/4/2021 | 20,000,000 | 20,000,000 | 1.0 | ||||||||||||||
| Delgatto Diamond Finance Fund, L.P., 8.00%, due 11/24/2022 (a)(b) | 5/28/2021 | 55,500,000 | 55,500,000 | 2.7 | ||||||||||||||
| Fairway America Fund (VII and VIIQP) LP, 7.00%, due 7/1/2023 (a)(b) | 11/29/2019 | 7,500,000 | 7,500,000 | 0.4 | ||||||||||||||
| Stage Point Capital, LLC, 30 Day Avg. SOFR (2.00% Floor and a 4.00% Ceiling) + 6.00%, due 5/1/2023 (a)(b)(c) | 5/21/2019 | 11,200,000 | 11,200,000 | 0.5 | ||||||||||||||
| Viscogliosi Brothers, LLC, 15.00%, due 10/31/2023 (a)(b) | 10/27/2021 | 5,505,660 | 5,505,660 | 0.3 | ||||||||||||||
| 104,860,313 | 104,860,313 | 5.2 | ||||||||||||||||
| Real Estate Debt | ||||||||||||||||||
| Artic Fox Joint Stock Company, 12.81%, due 11/24/2023 (a)(b) | 11/24/2021 | 720,000 | 720,000 | 0.0 | ||||||||||||||
| Drummond Ross Limited, 10.00%, due 9/30/2022 (a)(b) | 1/7/2022 | 4,071,203 | 3,681,722 | 0.2 | ||||||||||||||
| TAILOR RIDGE CAPITAL MANAGEMENT, LLC, 9.00%, due 7/31/2023 (a)(b) | 8/18/2021 | 3,845,000 | 3,845,000 | 0.2 | ||||||||||||||
| 8,636,203 | 8,246,722 | 0.4 | ||||||||||||||||
| Royalties | ||||||||||||||||||
| ARC LPW I, LLC, 13.00%, due 11/30/2025 (a)(b) | 9/26/2019 | 82,773,524 | 82,773,524 | 4.1 | ||||||||||||||
| Specialty Finance | ||||||||||||||||||
| 5 Core Capital LLC, 13.00%, due 9/30/2022 (a)(b) | 10/28/2020 | 9,832,150 | 9,832,150 | 0.5 | ||||||||||||||
| ACMV Factor Finance SPV LLC, 12.00%, due 11/8/2023 (a)(b) | 11/24/2021 | 13,225,000 | 13,225,000 | 0.7 | ||||||||||||||
| Advantech Servicios Financieros, 30 Day Avg. SOFR (1.00% Floor and a 3.50% Ceiling) + 8.00%, due 8/13/2026 (a)(b)(c) | 11/5/2020 | 11,805,000 | 11,805,000 | 0.6 | ||||||||||||||
| Aion Acquisition, LLC, 0.00%, due 12/31/2022 (a)(b) | 3/31/2021 | 1,217,193 | 242,680 | 0.0 | ||||||||||||||
| Aion Acquisition, LLC, 0.00%, due 3/31/2023 (a)(b) | 3/31/2021 | 538,513 | 359,863 | 0.0 | ||||||||||||||
| Art Lending, Inc. (Dart Milano S.R.L), 9.50%, due 12/31/2022 (a)(b) | 4/14/2021 | 12,154,496 | 12,154,496 | 0.6 | ||||||||||||||
| Art Lending, Inc. (Dart Milano S.R.L 2), 8.68%, due 12/20/2022 (a)(b) | 12/17/2021 | 13,957,126 | 13,957,126 | 0.7 | ||||||||||||||
| Art Lending, Inc. (Procacini S.L. - 1), 10.00%, due 12/31/2022 (a)(b) | 8/26/2020 | 2,430,956 | 2,430,956 | 0.1 | ||||||||||||||
| Art Lending, Inc. (Procacini S.L. - 2), 9.50%, due 4/7/2023 (a)(b) | 4/14/2021 | 4,047,827 | 4,047,827 | 0.2 | ||||||||||||||
| Art Money International, Co., 8.00%, due 12/9/2023 (a)(b) | 12/9/2019 | 435,000 | 435,000 | 0.0 | ||||||||||||||
| Art Money U.S., Inc., 30 Day Avg. SOFR (2.00% Floor) + 10.00%, due 7/1/2023 (a)(b)(c) | 6/12/2018 | 5,500,000 | 5,500,000 | 0.3 | ||||||||||||||
| AVISTA COLOMBIA S.A.S, 12.59%, due 3/29/2023 (a)(b) | 3/29/2021 | 7,200,000 | 7,200,000 | 0.4 | ||||||||||||||
| Bandon VAIF, LLC, 12.00%, due 1/24/2024 (a)(b) | 2/10/2020 | 5,763,947 | 3,361,502 | 0.2 | ||||||||||||||
| Bandon VAIF, LLC, 15.00%, due 1/31/2023 (a)(b) | 2/15/2022 | 61,000 | 61,000 | 0.0 | ||||||||||||||
| Bastion Funding IV LLC, 3 Month LIBOR (1.00% Floor) + 11.00%, due 12/31/2024 (a)(b)(c) | 1/19/2022 | 5,376,952 | 5,376,952 | 0.3 | ||||||||||||||
| Bastion Funding IV LLC, 3 Month LIBOR (1.00% Floor) + 10.00%, due 8/31/2024 (a)(b)(c) | 1/19/2022 | 10,000,000 | 10,000,000 | 0.5 | ||||||||||||||
| Bastion Funding IV LLC, 3 Month LIBOR (1.00% Floor) + 12.50%, due 7/15/2024 (a)(b)(c) | 1/19/2022 | 6,276,000 | 6,276,000 | 0.3 | ||||||||||||||
| BPIIHR HOLDCO, LLC, 16.00%, due 10/28/2026 (a)(b) | 11/1/2021 | 2,620,000 | 2,620,000 | 0.1 | ||||||||||||||
| Byzfunder Funding, LLC, 13.50%, due 9/5/2023 (a)(b) | 10/22/2021 | 4,896,165 | 4,896,165 | 0.2 | ||||||||||||||
| Cascade Energy Group, LLC., 30 Day Avg. SOFR (1.00% Floor) + 12.75%, Due 7/20/2025 (a)(b)(c) | 7/20/2022 | 7,959,184 | 7,959,184 | 0.4 | ||||||||||||||
| Coromandel Credit Facility, 9.00%, due 7/1/2023 (a)(b) | 1/13/2020 | 46,146,429 | 46,146,429 | 2.3 | ||||||||||||||
| Equity Link, S.A.P.I. De C.V., 10.00%, due 4/12/2024 (a)(b) | 4/29/2021 | 5,530,000 | 5,530,000 | 0.3 | ||||||||||||||
| First Class Securities Pty Ltd as trustee for the Oceana Australian Fixed Income Trust - 10.25%, due 4/15/2023 (a)(b) | 4/14/2021 | 7,652,000 | 7,085,088 | 0.4 | ||||||||||||||
| First Class Securities Pty Ltd as trustee for the Oceana Australian Fixed Income Trust - 11.25%, due 1/19/2023 (a)(b) | 1/20/2021 | 10,000,000 | 9,164,271 | 0.5 | ||||||||||||||
| First Class Securities Pty Ltd as trustee for the Oceana Australian Fixed Income Trust - 13.00%, due 11/9/2022 (a)(b) | 11/6/2020 | 30,000,000 | 29,168,792 | 1.4 | ||||||||||||||
| First Class Securities Pty Ltd as trustee for the Oceana Australian Fixed Income Trust - 12.50%, due 9/6/2023 (a)(b) | 9/7/2021 | 10,000,000 | 9,587,049 | 0.5 | ||||||||||||||
| First Class Securities Pty Ltd as trustee for the Oceana Australian Fixed Income Trust - 12.00%, due 3/21/2023 (a)(b) | 3/21/2022 | 5,000,000 | 4,708,952 | 0.2 | ||||||||||||||
| Grupo Olinx, S.A.P.I. de C.V., SOFOM, E.N.R., 12.11%, due 2/22/2025 (a)(b) | 8/12/2021 | 9,500,000 | 9,500,000 | 0.5 | ||||||||||||||
| Hash Maps Labs, Inc., 12.00%, due 3/31/2024 (a)(b) | 3/23/2021 | 2,474,447 | 2,474,447 | 0.1 | ||||||||||||||
| KY LAN ASSET FINANCE 1, 9.50%, due 1/26/2024 (a)(b) | 1/26/2022 | 10,362,793 | 10,362,793 | 0.5 | ||||||||||||||
| Lambda School III SPV LLC, 12.00%, due 5/17/2024 (a)(b) | 6/18/2021 | 3,332,109 | 3,332,109 | 0.2 | ||||||||||||||
| LCA Crackpital, S.A.P.I. de C.V. SOFOM, E.N.R., 15.25%, due 4/21/2023 (a)(b) | 4/21/2021 | 3,500,086 | 3,500,086 | 0.2 | ||||||||||||||
| Lendable Asset Management LLC, 14.50%, due 11/25/2024 (a)(b) | 1/13/2021 | 5,000,000 | 5,000,000 | 0.2 | ||||||||||||||
| Lendable Asset Management LLC, 10.75%, due 12/26/2024 (a)(b) | 1/10/2022 | 5,000,000 | 5,000,000 | 0.2 | ||||||||||||||
| MARINE STREET, L.P., 9.00%, due 1/31/2026 (a)(b) | 3/22/2022 | 27,689,236 | 27,689,236 | 1.4 | ||||||||||||||
| Pier Asset Management LLC, (Series 6), SONIA (1.00% Floor) + 13.50%, due 2/17/2024 (a)(b)(c) | 2/9/2022 | 21,862,667 | 21,862,667 | 1.1 | ||||||||||||||
| PT Awan Tunai Indonesia, 11.93%, due 5/19/2023 (a)(b) | 9/9/2020 | 17,500,200 | 17,500,200 | 0.9 | ||||||||||||||
| PT SOLUSI DIGITAL INTERASIA, 9.30%, due 10/23/2022 (a)(b) | 11/11/2020 | 3,800,000 | 3,800,000 | 0.2 | ||||||||||||||
| RAINFOREST LIFE PTE. LTD., 14.00%, due 8/20/2024 (a)(b) | 8/20/2021 | 12,337,793 | 12,337,793 | 0.6 | ||||||||||||||
| RIVONIA ROAD FUND LP, 1 Month LIBOR (3.00% Floor) + 11.00%, due 10/28/2023 (a)(b)(c) | 11/12/2021 | 2,344,244 | 2,344,244 | 0.1 | ||||||||||||||
| RKB Bridge Solutions Credit Facility, 7.75%, due 12/10/2022 (a)(b) | 12/13/2019 | 18,973,778 | 18,973,778 | 0.9 | ||||||||||||||
| RKB Bridge Solutions Credit Facility, 30 Day Avg. SOFR (1.00% Floor and a 9.75% Ceiling) + 6.75%, due 3/31/2025 (a)(b)(c) | 4/21/2022 | 5,130,000 | 5,130,000 | 0.3 | ||||||||||||||
| Salaryo Credit Facility, 11.00%, due 4/15/2023 (a)(b) | 1/30/2020 | 8,150,000 | 8,150,000 | 0.4 | ||||||||||||||
| Star Strong Capital, 9.00%, due 1/24/2025 (a)(b) | 8/9/2019 | 62,171,207 | 62,171,207 | 3.1 | ||||||||||||||
| Star Strong Funding LLC, 8.00%, due 12/31/2023 (a)(b) | 2/4/2022 | 697,418 | 697,418 | 0.0 | ||||||||||||||
| STAT CAPITAL SPV LLC, 30 Day Avg. SOFR (1.00% Floor) + 9.75%, due 4/28/2026 (a)(b)(c) | 4/29/2022 | 7,500,000 | 7,500,000 | 0.4 | ||||||||||||||
| Stride Alternative Education Fund 1, 14.00%, due 6/10/2029 (a)(b) | 6/13/2022 | 6,818,000 | 6,818,000 | 0.3 | ||||||||||||||
| TCM Produce LLC, 16.00%, due 10/15/2022 (a)(b) | 5/19/2021 | 10,295,000 | 10,295,000 | 0.5 | ||||||||||||||
| Vantage Borrower SPV I LLC, 12.00%, due 4/30/2024 (a)(b) | 9/11/2020 | 3,000,000 | 3,000,000 | 0.1 | ||||||||||||||
| Wall St. Funding, Prime (4.00% Floor) + 8.50%, due 2/18/2022 (a)(b)(c) | 5/7/2021 | 9,095,084 | 9,095,084 | 0.4 | ||||||||||||||
| Watu Holdings Ltd, 13.00%, due 5/7/2024 (a)(b) | 4/11/2022 | 10,000,000 | 10,000,000 | 0.5 | ||||||||||||||
| 506,159,000 | 499,665,544 | 24.8 | ||||||||||||||||
| Trade Finance | ||||||||||||||||||
| Drip Trade Finance Series 2020-P, 7.00%, due 8/31/2022 (a)(b) | 8/28/2020 | 2,000,000 | 2,000,000 | 0.1 | ||||||||||||||
| Drip Trade Finance Series 2020-W, 7.00%, due 11/1/2022 (a)(b) | 10/30/2020 | 1,000,000 | 1,000,000 | 0.1 | ||||||||||||||
| Drip Trade Finance Series 2022-D, 7.00%, due 8/15/2022 (a)(b) | 2/14/2022 | 5,000,000 | 5,000,000 | 0.2 | ||||||||||||||
| MEDTRADE CAPITAL, LLC, 0.00%, due 7/31/2025 (a)(b) | 4/30/2022 | 94,265,709 | 88,586,779 | 4.4 | ||||||||||||||
| Octagon Asset Management, LLC - (Deal: Tru Grit 7), 24.00%, due 12/31/2022 (a)(b) | 3/9/2021 | 20,902,461 | 20,902,461 | 1.0 | ||||||||||||||
| 123,168,170 | 117,489,240 | 5.8 | ||||||||||||||||
| Warehouse Facilities | ||||||||||||||||||
| Edly WH Investors 2019-1, LLC, 12.00%, due 12/4/2023 (a)(b) | 10/9/2019 | 3,404,551 | 3,404,552 | 0.2 | ||||||||||||||
| Homelight Homes Real Estate, LLC, 12.00%, due 2/28/2023 (a)(b) | 10/8/2020 | 75,000,000 | 75,000,000 | 3.7 | ||||||||||||||
| Rivonia Road Accept, LLC, 8.00%, due 11/12/2022 (a)(b) | 2/5/2021 | 1,222,214 | 1,222,214 | 0.0 | ||||||||||||||
| 79,626,765 | 79,626,766 | 3.9 | ||||||||||||||||
| Total investments in credit facilities | 1,053,395,874 | 1,040,834,007 | 51.5 | |||||||||||||||
The accompanying notes are an integral part of these Financial Statements.
Variant Alternative Income Fund
Schedule of Investments
July 31, 2022
| Shares Units |
First Acquisition Date | Cost | Fair Value | Percent of Net Assets |
||||||||||||||
| Investments in special purpose vehicles - 12.8% | ||||||||||||||||||
| Litigation Finance | ||||||||||||||||||
| YS CF LawFF VII LLC (a)(b) | - | 4/5/2018 | 248,939 | 248,939 | 0.0 | |||||||||||||
| Real Estate Debt | ||||||||||||||||||
| Monticello Funding, LLC Series BTH-31 (a)(e)(f) | - | 5/29/2019 | 248,076 | 250,626 | 0.0 | |||||||||||||
| Monticello Funding, LLC Series BTH-47 (a)(e)(f) | - | 12/22/2020 | 3,000,000 | 3,030,659 | 0.2 | |||||||||||||
| Monticello Funding, LLC Series BTH-48 (a)(e)(f) | - | 7/23/2021 | 2,250,000 | 2,274,328 | 0.1 | |||||||||||||
| Monticello Funding, LLC Series BTH-49 (a)(e)(f) | - | 8/16/2021 | 710,526 | 718,061 | 0.0 | |||||||||||||
| Monticello Funding, LLC Series BTH-54 (a)(e)(f) | - | 12/17/2021 | 1,990,161 | 2,010,813 | 0.1 | |||||||||||||
| Monticello Funding, LLC Series BTH-55 (a)(e)(f) | - | 12/17/2021 | 2,500,000 | 2,525,176 | 0.1 | |||||||||||||
| Monticello Funding, LLC Series BTH-56 (a)(e)(f) | - | 12/17/2021 | 7,333,857 | 7,414,948 | 0.4 | |||||||||||||
| Monticello Structured Products, LLC Series MSP-17 (a)(e)(f) | - | 12/13/2021 | 2,000,000 | 2,021,446 | 0.1 | |||||||||||||
| Monticello Structured Products, LLC Series SH-52 (a)(e)(f) | - | 3/30/2022 | 1,500,000 | 1,515,866 | 0.1 | |||||||||||||
| Monticello Structured Products, LLC Series SH-62 (a)(e)(f) | - | 5/6/2022 | 800,000 | 807,779 | 0.0 | |||||||||||||
| 22,332,620 | 22,569,702 | 1.1 | ||||||||||||||||
| Real Estate Equity | ||||||||||||||||||
| CDMX DEBT FUND, LLC (a)(b) | - | 4/25/2022 | 30,077,269 | 29,900,045 | 1.5 | |||||||||||||
| CMF II Portfolio East Bridge, LLC (a)(b) | - | 2/15/2022 | 20,000,000 | 20,000,000 | 1.0 | |||||||||||||
| CMF III Gates Portfolio, LLC (a)(b) | - | 2/25/2022 | 4,940,000 | 4,940,000 | 0.2 | |||||||||||||
| CX Cypress McKinney Falls Depositor, LLC (a)(b) | - | 11/24/2021 | 442,500 | 442,500 | 0.0 | |||||||||||||
| CX Industrial Logistics Depositor, LLC (a)(b) | 5/10/2022 | 6,200,000 | 6,200,000 | 0.3 | ||||||||||||||
| CX Lively Indigo Run Depositor, LLC (a)(b) | - | 5/9/2022 | 10,395,000 | 10,395,000 | 0.5 | |||||||||||||
| CX Midwest Industrial Logistics Depositor, LLC (a)(b) | - | 6/2/2022 | 10,000,000 | 10,000,000 | 0.5 | |||||||||||||
| CX Owings Mills MultiFamily Depositor, LLC (a)(b) | 7/12/2022 | 10,000,000 | 10,000,000 | 0.5 | ||||||||||||||
| CX Residences at Congressional Village Depositor, LLC (a)(b) | - | 6/27/2022 | 10,000,000 | 10,000,000 | 0.5 | |||||||||||||
| CX Station at Clift Farm Depositor, LLC (a)(b) | - | 12/27/2021 | 11,800,000 | 11,800,000 | 0.6 | |||||||||||||
| 113,854,769 | 113,677,545 | 5.6 | ||||||||||||||||
| Royalties | ||||||||||||||||||
| Round Hill Music Carlin Coinvest, LP (d)(e)(f) | - | 10/1/2017 | 929,104 | 1,156,443 | 0.1 | |||||||||||||
| Specialty Finance | ||||||||||||||||||
| Cirrix Investments, LLC (a)(e)(f) | - | 1/27/2022 | 5,000,000 | 5,545,686 | 0.3 | |||||||||||||
| CoVenture - Clearbanc Special Assets Fund LP (a)(e)(f) | - | 3/12/2019 | 1,500,000 | 1,513,368 | 0.1 | |||||||||||||
| PSC US BADGER LLC (a)(e)(f) | - | 10/20/2021 | 18,194,438 | 18,427,464 | 0.9 | |||||||||||||
| Segregated Investment Vehicle I, SP (a segregated portfolio of Lendable SPC), 12.18% (a)(e)(f) | - | 7/31/2020 | 98,628,680 | 95,423,125 | 4.7 | |||||||||||||
| 123,323,118 | 120,909,643 | 6.0 | ||||||||||||||||
| Transportation Finance | ||||||||||||||||||
| YS Vessel Deconstruction I (a)(b) | - | 8/26/2018 | 500,000 | 200,000 | 0.0 | |||||||||||||
| Total investments in special purpose vehicles | 261,188,550 | 258,762,272 | 12.8 | |||||||||||||||
| Investments in direct equities - 0.4% | ||||||||||||||||||
| Litigation Finance | ||||||||||||||||||
| Kerberos Capital Management SPV V, LLC (a)(b) | 5 | 5/17/2022 | 0 | 1,138,240 | 0.1 | |||||||||||||
| Royalties | ||||||||||||||||||
| ARC LPW I, LLC Warrants (a)(b) | 3,063 | 10/3/2019 | 0 | 22,358 | 0.0 | |||||||||||||
| Specialty Finance | ||||||||||||||||||
| Aion Financial - Equity (a)(b) | 219,220 | 3/31/2021 | 22 | 349,125 | 0.0 | |||||||||||||
| Art Lending, Inc. (Dart Milano Profit Share) (a)(b) | - | 6/2/2021 | 0 | 29,043 | 0.0 | |||||||||||||
| Art Lending, Inc. (Dart Milano 2 Profit Share) (a)(b) | - | 12/17/2021 | 0 | 186,927 | 0.0 | |||||||||||||
| Art Lending, Inc. (Procacini S.L. - 1 Profit Share) (a)(b) | - | 8/26/2020 | 0 | 250,633 | 0.0 | |||||||||||||
| Art Lending, Inc. (Procacini S.L. - 2 Profit Share) (a)(b) | - | 4/14/2021 | 0 | 403,398 | 0.0 | |||||||||||||
| Art Money International, Co. - Convertible Shares (a)(b) | - | 11/5/2021 | 0 | 59,661 | 0.0 | |||||||||||||
| Coromandel SPV LLC - Warrants (a)(b) | - | 9/8/2021 | 0 | 107,553 | 0.0 | |||||||||||||
| INTERNEX CAPITAL LLC (a)(b) | 359,701 | 4/1/2022 | 1,250,000 | 1,250,000 | 0.1 | |||||||||||||
| RAINFOREST LIFE PTE. LTD. - Warrants (a)(b) | 61,370 | 8/20/2021 | 0 | 106,200 | 0.0 | |||||||||||||
| STAR STRONG FUNDING LLC (a)(b) | - | 4/27/2022 | 348,000 | 1,851,219 | 0.1 | |||||||||||||
| Vantage Borrower SPV I LLC Warrants (a)(b) | 29,207 | 1/27/2021 | 0 | 1,391,903 | 0.1 | |||||||||||||
| 1,598,022 | 5,985,662 | 0.3 | ||||||||||||||||
| Trade Finance | ||||||||||||||||||
| Octagon Asset Management, LLC - (Deal: Tru Grit 7) - Warrants (a)(b) | - | 5/18/2021 | 0 | 292,500 | 0.0 | |||||||||||||
| Total investments in direct equities | 1,598,022 | 7,438,760 | 0.4 | |||||||||||||||
| Shares | ||||||||||||||||||
| Investments in money market instruments - 4.8% | ||||||||||||||||||
| GS Financial Square Government Fund, Institutional Shares, 0.03% (a)(i) | 97,428,609 | 97,428,609 | 97,428,609 | 4.8 | ||||||||||||||
| Total investments in money market instruments | 97,428,609 | 97,428,609 | 4.8 | |||||||||||||||
| Total Investments (cost $1,955,436,656) | $ | 2,012,153,379 | 99.5 | |||||||||||||||
| Other assets less liabilities | 10,910,117 | 0.5 | ||||||||||||||||
| Net Assets | $ | 2,023,063,496 | 100.0 | |||||||||||||||
The accompanying notes are an integral part of these Financial Statements.
Variant Alternative Income Fund
Schedule of Investments
July 31, 2022
| (a) | Security serves as collateral for the Fund's revolving credit facility, when in use during the year. See Note 11. |
| (b) | Value was determined using significant unobservable inputs. |
| (c) | Variable rate security. |
| (d) | 100% of this special purpose vehicle is invested in one music catalog. |
| (e) | Private investment company or special purpose vehicle does not issue shares or units. |
| (f) | Investment valued using net asset value per share (or its equivalent) as a practical expedient. See Note 14 for respective investment strategies and redemptive restrictions. |
| (g) | Private investment company is part of the MSPR SPAC. The Fund's valuation is made up of it's share of the SPAC plus a preferred return. |
| (h) | Rate listed is the 7-day effective yield at 7/31/2022. |
The accompanying notes are an integral part of these Financial Statements.
Variant Alternative Income Fund
Portfolio Allocation (Unaudited)
July 31, 2022
Investment Type as a percentage of Total Net Assets As Follows
| Security Type/Sector | Percent of Total Net Assets |
| Credit Facilities | 51.5% |
| Private Investment Companies | 30.0% |
| Special Purpose Vehicles | 12.8% |
| Direct Equities | 0.4% |
| Short-Term Investments | 4.8% |
| Total Investments | 99.5% |
| Other assets less liabilities | 0.5% |
| Total Net Assets | 100.0% |
The accompanying notes are an integral part of these Financial Statements.
Variant Alternative Income Fund
Schedule of Investments
July 31, 2022
FUTURES CONTRACTS
Expiration Date | Number of Contracts Long (Short) | Notional Value | Value at April 30, 2022 | Unrealized Appreciation (Depreciation) | ||||||||||||||
| Foreign Exchange Futures | ||||||||||||||||||
| CME Australian Dollar | September 2022 | (909 | ) | (65,663,160 | ) | (63,630,000 | ) | 2,033,160 | ||||||||||
| CME Euro Dollar | September 2022 | (30 | ) | (4,034,351 | ) | (3,845,438 | ) | 188,913 | ||||||||||
| CME Mexican Peso | September 2022 | (1,219 | ) | (30,478,689 | ) | (29,664,365 | ) | 814,324 | ||||||||||
| TOTAL FUTURES CONTRACTS | $ | (100,176,200 | ) | $ | (97,139,803 | ) | $ | 3,036,397 | ||||||||||
See accompanying Notes to Consolidated Financial Statements.
Variant Alternative Income Fund
Notes to Financial Statements
July 31, 2022
1. Valuation of Investments
The Fund calculates its NAV as of the close of business on each business day and at such other times as the Board may determine, including in connection with repurchases of Shares, in accordance with the procedures described below or as may be determined from time to time in accordance with policies established by the Board.
The Board has approved valuation procedures for the Fund (the “Valuation Procedures”). The Valuation Procedures provide that the Fund will value its investments at fair value. The Board has delegated the day to day responsibility for determining these fair values in accordance with the policies it has approved to the Investment Manager. The Investment Manager’s Valuation Committee (the “Valuation Committee”) will oversee the valuation of the Fund’s investments on behalf of the Fund. The Board reviews and ratifies the execution of this process and the resultant fair value prices at least quarterly.
Short-term securities, including bonds, notes, debentures and other debt securities, such as certificates of deposit, commercial paper, bankers’ acceptances and obligations of domestic and foreign banks, with maturities of 60 days or less, for which reliable market quotations are readily available shall each be valued at current market quotations as provided by an independent pricing service or principal market maker. Money market funds will be valued at NAV.
For equity, equity related securities, and options that are freely tradable and listed on a securities exchange or over-the-counter market, the Fund fair values those securities at their last sale price on that exchange or over-the-counter market on the valuation date. If the security is listed on more than one exchange, the Fund will use the price from the exchange that it considers to be the principal exchange on which the security is traded. Securities listed on the NASDAQ will be valued at the NASDAQ Official Closing Price, which may not necessarily represent the last sale price. If there has been no sale on such exchange or over-the-counter market on such day, the security will be valued at the mean between the last bid price and last ask price on such day.
Fixed income securities (other than the short-term securities as described above) shall be valued by (a) using readily available market quotations based upon the last updated sale price or a market value from an approved pricing service generated by a pricing matrix based upon yield data for securities with similar characteristics or (b) by obtaining a direct written broker-dealer quotation from a dealer who has made a market in the security. If no price is obtained for a security in accordance with the foregoing, because either an external price is not readily available or such external price is believed by the Investment Manager not to reflect the market value, the Valuation Committee will make a determination in good faith of the fair value of the security in accordance with the Valuation Procedures. In general, fair value represents a good faith approximation of the current value of an asset and will be used when there is no public market or possibly no market at all for the asset. The fair values of one or more assets may not be the prices at which those assets are ultimately sold and the differences may be significant.
Prior to investing in any Underlying Fund, the Investment Manager will conduct an initial due diligence review of the valuation methodologies utilized by the Underlying Fund, which generally shall be based upon readily observable market values when available, and otherwise utilize principles of fair value that are reasonably consistent with those used by the Fund for valuing its own investments. Subsequent to investment in an Underlying Fund, the Investment Manager will monitor the valuation methodologies used by each Underlying Fund. The Fund bases its NAV on valuations of its interests in Underlying Funds provided by the managers of the Underlying Funds and/or their agents. These valuations involve significant judgment by the managers of the Underlying Funds and may differ from their actual realizable value. Under certain circumstances, the Valuation Committee may modify the managers’ valuations based on updated information received since the last valuation date. The Valuation Committee may also modify valuations if the valuations are deemed to not fully reflect the fair value of the investment. Valuations will be provided to the Fund based on interim unaudited financial records of the Underlying Funds, and, therefore, will be estimates and may fluctuate as a result. The Board, the Investment Manager and the Valuation Committee may have limited ability to assess the accuracy of these valuations.
Variant Alternative Income Fund
Notes to Financial Statements
July 31, 2022 (continued)
In circumstances in which market quotations are not readily available or are deemed unreliable, or in the case of the valuation of private, direct investments, such investments may be valued as determined in good faith using methodologies approved by the Board. In these circumstances, the Fund determines fair value in a manner that seeks to reflect the market value of the security on the valuation date based on consideration by the Valuation Committee of any information or factors deemed appropriate. The Valuation Committee may engage third party valuation consultants on an as-needed basis to assist in determining fair value.
Fair valuation involves subjective judgments, and there is no single standard for determining the fair value of an investment. The fair value determined for an investment may differ materially from the value that could be realized upon the sale of the investment. Fair values used to determine the Fund’s NAV may differ from quoted or published prices, or from prices that are used by others, for the same investment. Thus, fair valuation may have an unintended dilutive or accretive effect on the value of shareholders’ investments in the Fund. Information that becomes known to the Fund or its agents after the NAV has been calculated on a particular day will not be used to retroactively adjust the price of a security or the NAV determined earlier. Prospective investors should be aware that situations involving uncertainties as to the value of investments could have an adverse effect on the Fund’s NAV if the judgments of the Board or the Valuation Committee regarding appropriate valuations should prove incorrect.
Written Options
The Fund may write call and put options. Writing put options tends to increase the Fund’s exposure to the underlying instrument. Writing call options tends to decrease the Fund’s exposure to the underlying instrument. When the fund writes a call or put option, an amount equal to the premium received is recorded as a liability and subsequently marked-to-market to reflect the current value of the option written. These liabilities are reflected as written options outstanding in the Schedule of Investments. Payments received or made, if any, from writing options with premiums to be determined on a future date are reflected as such in the Schedule of Investments. Premiums received from writing options that expire are treated as realized gains. Premiums received from writing options that are exercised or closed are added to the proceeds or offset against amounts paid on the underlying future, security or currency transaction to determine the realized gain or loss. The Fund, as a writer of an option, has no control over whether the underlying future, security or currency may be sold (call) or purchased (put) and, as a result, bears the market risk of an unfavorable change in the price of the security underlying the written option. The risk exists that the Fund may not be able to enter into a closing transaction because of an illiquid market.
Futures
The Fund may enter into futures contracts in U.S. domestic markets or on exchanges located outside the United States. Foreign markets may offer advantages such as trading opportunities or arbitrage possibilities not available in the United States. Foreign markets, however, may have greater risk potential than domestic markets. For example, some foreign exchanges are principal markets so that no common clearing facility exists and an investor may look only to the broker for performance of the contract. In addition, any profits that might be realized in trading could be eliminated by adverse changes in the exchange rate, or a loss could be incurred as a result of those changes. Transactions on foreign exchanges may include both commodities which are traded on domestic exchanges and those which are not. Unlike trading on domestic commodity exchanges, trading on foreign commodity exchanges is not regulated by the Commodity Futures Trading Commission.
Engaging in these transactions involves risk of loss, which could adversely affect the value of the Fund's net assets. No assurance can be given that a liquid market will exist for any particular futures contract at any particular time. Many futures exchanges and boards of trade limit the amount of fluctuation permitted in futures contract prices during a single trading day. Once the daily limit has been reached in a particular contract, no trades may be made that day at a price beyond that limit or trading may be suspended for specified periods during the trading day. Futures contract prices could move to the limit for several consecutive trading days with little or no trading, thereby preventing prompt liquidation of futures positions and potentially subjecting the Fund to substantial losses.
Variant Alternative Income Fund
Notes to Financial Statements
July 31, 2022 (continued)
2. Fair Value of Investments
(a) Fair value - Definition
The Fund uses a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The objective of a fair value measurement is to determine the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). Accordingly, the fair value hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:
| ● | Level 1 – Valuations based on unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. |
| ● | Level 2 – Valuations based on inputs, other than quoted prices included in Level 1, that are observable either directly or indirectly. |
| ● | Level 3 – Valuations based on inputs that are both significant and unobservable to the overall fair value measurement. |
Investments in private investment companies measured based upon NAV as a practical expedient to determine fair value are not required to be categorized in the fair value hierarchy.
The availability of valuation techniques and observable inputs can vary from investment to investment and are affected by a wide variety of factors, including type of investment, whether the investment is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, determining fair value requires more judgment. Because of the inherent uncertainly of valuation, estimated values may be materially higher or lower than the values that would have been used had a ready market for the investments existed. Accordingly, the degree of judgment exercised by the Investment Manager in determining fair value is greatest for investments categorized in Level 3.
In some circumstances, the inputs used to measure fair value might be categorized within different levels of the fair value hierarchy. In those instances, the fair value measurement is categorized in its entirety in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement.
(b) Fair Value – Valuation Techniques and Inputs
When determining fair value, the Fund uses valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs.
Investments in Private Investment Companies
The Fund values private investment companies using the NAV’s provided by the underlying private investment companies as a practical expedient. The Fund applies the practical expedient to private investment companies on an investment-by-investment basis, and consistently with the Fund’s entire position in a particular investment, unless it is probable that the Fund will sell a portion of an investment at an amount different from the NAV of the investment. Each of these investments has certain restrictions with respect to rights of withdrawal by the Fund as specified in the respective agreements. Generally, the Fund is required to provide notice of its intent to withdraw after the investment has been maintained for a certain period of time. The management agreements of the private investment companies provide for compensation to the managers in the form of fees ranging from 0% to 2% annually of net assets and performance incentive allocations or fees ranging from 0% to 20% on net profits earned.
At July 31, 2022, the Fund had a private investment company of $25,071,371 that did not qualify for the practical expedient because it is probable that the Fund could sell these investments for amounts that differ from the NAV’s provided by the underlying private investment companies. Private investment companies not qualifying for practical expedient were valued by the Fund through application of adjustments to the stated NAV’s reported by the underlying private investment companies. These adjustments are based on other relevant information available that the Fund feels has not been reflected in the most recent fair value. As a result, a premium of 1.05x has been applied to the investment’s practical expedient value. Investments in private investment companies that do not qualify for the practical expedient are categorized in Level 3 of the fair value hierarchy.
Variant Alternative Income Fund
Notes to Financial Statements
July 31, 2022 (continued)
Investments in Special Purpose Vehicles
Special purpose vehicles (“SPV”) consist of an investment by the Fund in an entity that invests directly or indirectly in a note secured by various collateral. The debt offerings are generally short-term in nature and carry a fixed interest rate. During the period ended July 31, 2022, the Investment Manager determined there were minimal credit impairments. Investments in SPV are generally measured based on NAV as practical expedient, while others are categorized as Level 3 of the fair value hierarchy.
Investments in Credit Facilities
The Fund has invested in credit facilities that are either secured by the borrower’s assets or are unsecured in nature. The credit facilities have been made directly or through participation with private investment or operating companies. The investments in credit facilities will generally be held at cost subject to certain revisions, such as (i) a material change in interest rates for similar notes or (ii) if the Investment Manager becomes aware of a fundamental change that has not been reflected in the cost. The Fund has determined to value its investments in credit facilities generally at cost although some are above or below cost as of July 31, 2022. During the period ended July 31, 2022, the Investment Manager determined there were no material changes in interest rates or fundamental changes. Investments in credit facilities are categorized in Level 3 of the fair value hierarchy.
Investments in Direct Equities
As a part of some of the credit facilities, the Fund receives direct equity in the private investments or operating companies of the borrower via common stock shares, warrants, or profit sharing instruments. The Fund has determined to value its investments in direct equities through a discounted cash flow or market approach method as of July 31, 2022. Investments in direct equities are categorized in Level 3 of the fair value hierarchy.
(c) Fair Value - Hierarchy
The Fund’s assets recorded at fair value have been categorized based on a fair value hierarchy as described in the Fund’s significant accounting policies. The following table presents information about the Fund’s assets and liabilities measured at fair value as of July 31, 2022. Assets valued using NAV as a practical expedient, an indicator of fair value, are listed in a separate column to permit reconciliation to totals in the Statement of Assets and Liabilities:
| Investments | Level 1 | Level 2 | Level 3 | Investments Valued at Net Asset Value | Total | |||||||||||||||
| Private Investment Companies | $ | - | $ | - | $ | 25,071,371 | $ | 582,618,360 | $ | 607,689,731 | ||||||||||
| Credit Facilities | - | - | 1,040,834,007 | - | 1,040,834,007 | |||||||||||||||
| Special Purpose Vehicles | - | - | 114,126,484 | 144,635,788 | 258,762,272 | |||||||||||||||
| Direct Equities | - | - | 7,438,760 | - | 7,438,760 | |||||||||||||||
| Short-Term Investments | 97,428,609 | - | - | - | 97,428,609 | |||||||||||||||
| Total Investments | $ | 97,428,609 | $ | - | $ | 1,187,470,622 | $ | 727,254,148 | $ | 2,012,153,379 | ||||||||||
| Other Financial Instruments1 | ||||||||||||||||||||
| Futures Contracts | $ | 3,036,397 | $ | - | $ | - | $ | - | $ | 3,036,397 | ||||||||||
| Total Assets | $ | 100,465,006 | $ | - | $ | 1,187,470,622 | $ | 727,254,148 | $ | 2,015,189,776 | ||||||||||
| 1 | Other financial instruments are derivative instruments such as futures contracts, forward contracts and swap contracts. Futures contracts, forward contracts and swap contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
Variant Alternative Income Fund
Notes to Financial Statements
July 31, 2022 (continued)
(d) Fair Value – Changes in Level 3 Measurements
The following table presents the changes in assets and transfers in and out which are classified in Level 3 of the fair value hierarchy for the period ended July 31, 2022:
Private Investment Companies | Credit Facilities | Special Purpose Vehicles | Direct Equities | |||||||||||||
| April 30, 2022 | $ | 35,587,842 | $ | 933,343,913 | $ | 66,579,260 | $ | 4,678,276 | ||||||||
| Realized gains (losses) | - | - | - | - | ||||||||||||
| Unrealized gains (losses) | (10,516,471 | ) | (6,679,247 | ) | 2,760,484 | |||||||||||
| Transfers Into Level 3 | - | - | 28,540,178 | - | ||||||||||||
| Transfers Out of Level 3 | - | - | - | - | ||||||||||||
| Purchases | - | 235,906,034 | 48,237,091 | - | ||||||||||||
| Sales | - | (121,736,693 | ) | (29,230,045 | ) | - | ||||||||||
| July 31, 2022 | $ | 25,071,371 | $ | 1,040,834,007 | $ | 114,126,484 | $ | 7,438,760 | ||||||||
The following table summarizes the valuation techniques and significant unobservable inputs used for the Fund’s investments that are categorized in Level 3 of the fair value hierarchy as of July 31, 2022.
| Investments | Fair Value | Valuation Technique | Unobservable Inputs | Range of Inputs | Weighted Average (1) |
Impact on Valuation |
| Private Investment Companies | $25,071,371 | Market Approach |
Ownership % Carried Interest Preferred Return |
3.19% 35.00% 20.00% |
N/A N/A N/A |
Increase Decrease Increase |
| Credit Facilities | 1,040,834,007 | Market Approach
Discounted Cash Flow
|
Recent transaction price
Interest Rate Discount Rate |
N/A
10.25% - 13.00% 8.00% - 10.00% |
N/A
12.25% 8.44% |
Increase
Decrease Decrease |
| Special Purpose Vehicles | 114,126,484 | Market Approach
Income Approach |
Recent transaction price
Preferred Return |
N/A
12.00% |
N/A
12.00% |
Increase
Increase |
| Direct Equities | 7,438,760 | Discounted Cash Flow
Market Approach
|
Discount Rate Growth Rate Market Multiple Ownership %
Discount Rate Market Multiple Market Valuation Ownership % Price Per Share |
15.00% - 30.00% 3.00% 8.15 1.95%
15.00% . 35.00% 10.00 $600,000 - $50,000,000 0.089% - 10.00% $3.48 - $47.66 |
20.16% N/A N/A N/A
22.96% N/A $22,944,418 3.23% $26.75 |
Decrease Increase Increase Increase
Decrease Increase Increase Increase Increase |
| (1) | Unobservable inputs were weighted by the fair value of the instruments as of fiscal year ended 7/31/22 |