Nomura Alternative Income Fund: Nov 20 Repurchase, Parent Owns 26%

What the October 23, 2026 notice says

Nomura Alternative Income Fund began operations on February 13, 2023. It is registered under the Investment Company Act (file number 811-23826), sells only Class I shares today, and has an interval structure: it must offer to buy back between 5% and 25% of its shares every quarter, and the Board picks the amount. The prospectus says offers “will occur in the months of February, May, August and November.” This is the fourteenth quarterly notice since the first one in July 2023. For how the structure works in general, see what an interval fund is and the list of interval funds, where this fund is number 57.

Two things in the notice are easy to miss. The repurchase price is struck on the same day as the deadline, not up to 14 days later as Rule 23c-3 allows, so there is no waiting period between the deadline and the price (the rule says a pricing date “shall occur no later than the fourteenth day after a repurchase request deadline”). But you still decide without knowing the price, because the deadline and the pricing time are the same 4:00 p.m., and the NAV quoted in the notice is only informational: in the October 2025 offer the notice said $9.76 and the offer priced at $9.74.

Fourteen notices, twelve known results: the fund has never been asked for much

The annual and semiannual reports list the result of every completed offer. The percentage is of shares outstanding. Through the offer that closed on February 20, 2026, nothing reached the 5% offer size, so no filing shows a prorated offer.

Three phases show up. For the first nineteen months almost nobody tendered: the fund bought nothing in four of the first seven offers and at most 0.22% in the others. Tenders began to matter in 2025 as the fund grew, and the November 2025 offer was the first big one, with $16.5 million, or 4.53% of shares (our arithmetic puts the share count near 37.4 million on that date). It fell back to 1.60% in February 2026. The May 2026 redemption is in the N-PORT for the quarter to June 30, 2026 ($15,130,481 in May, nothing in April or June), but the share of shares bought will only be stated in the semiannual report for the six months to September 30, 2026. Fiscal 2026 repurchases totaled $25,757,997, 9.5% of the $269.7 million of shares sold that year (our arithmetic).

The August 21, 2026 offer has no filed result. Its figures will be in the same semiannual report (the fund filed last year’s on December 5, 2025) and in the N-PORT for the quarter to September 30, 2026.

What a 5% offer would mean in dollars

The notice gives a percentage, never a dollar amount. The table turns it into dollars at the most recent share count in the filings, and sets it beside what the fund has actually bought.

New money has covered the exits so far: in the quarter to June 2026 the fund took in $33.9 million (plus $3.4 million of reinvested distributions) and paid out $15.1 million. That cushion is the first thing to watch, and the next section shows why.

Who owns the fund

The prospectus, in a table dated July 1, 2026, lists every holder of 5% or more of Class I:

The filing lists “record owners (or to the knowledge of the Fund, beneficial owners).” Schwab and National Financial Services are brokerage firms, so their lines are likely to be accounts held for many clients, not single investors (our reading). The prospectus states that Nomura Capital Management “was founded in May 2022 as a subsidiary of Nomura Holding America Inc.” That means Nomura Holding America Inc., the parent of the adviser, owns 25.79% of the Class I shares. HVS-NAIFX SPV LP shares the same New York address as Nomura, 309 W 49th Street, 24th Floor; the filing does not say who owns it, so we do not count it as Nomura’s, but the two together are 39.78% of the fund (our sum).

Why it matters to someone deciding whether to tender: Nomura Holding America’s stake alone is $113.9 million at $9.62, more than five times a 5% offer. No filing says it will or will not tender. But the mechanism is fixed: if all requests exceed the offer plus the 2% the fund may add, the fund “will repurchase the Shares on a pro rata basis.” A request from any one of the large holders could therefore shrink everyone else’s fill. In the other direction, a parent that stays in is a steady holder (our reading).

Money in, money out, quarter by quarter

Form N-PORT reports monthly sales, reinvestments and redemptions for each month of the quarter. These are our sums:

The annual report shows the same shape for fiscal 2026: $269.7 million of shares sold, $13.1 million of distributions reinvested and $25.8 million redeemed, with net assets going from $174.7 million to $426.2 million, a rise of 2.44 times (our arithmetic). The fund’s letter says about 43% of distributed income was reinvested. The N-PORT figure for net assets at March 31, 2026 ($422.7 million) is $3.5 million lower than the audited $426.2 million in the annual report; the audited number is used elsewhere on this page.

Sales in the latest quarter are about a third of the December 2025 quarter (down 65.2%), while redemptions in the same quarter were close to the record. If sales keep falling and requests rise toward 5%, the cushion described above gets thinner. That is a reading of two sets of public numbers, not a prediction.

What it owns, and how fast it can raise cash

The annual report’s letter says the fund had 1,528 investments, 84.7% of the portfolio in secured debt, and “$385 million representing approximately 90% of net assets” in private credit. It is a fund of funds: most lines are limited-partnership stakes in other managers’ credit vehicles. At March 31, 2026:

Three points follow from the filings. First, the exit terms of the underlying funds are mixed: of the $300.5 million valued at reported NAV, $133.9 million (44.5%) sits in funds with no stated redemption frequency, $107.4 million in 15 funds that take quarterly requests, and the rest in funds that redeem daily, monthly, semiannually or annually (our sums of the 37 lines in Note 3). The note adds that “there is no guarantee the Fund will be paid all or any of the redemption amount at the time requested.” Second, the fund has promised more money than it has in liquid holdings: unfunded commitments to those funds were $56.5 million (13.3% of net assets), against $32.3 million at Levels 1 and 2 (our sums); the fund says it “reasonably believes its assets will provide adequate cover.” Third, Rule 23c-3 requires that from the date of the notice to the pricing date at least 100 percent of the repurchase offer amount be held in “assets that can be sold or disposed of in the ordinary course of business.” A 5% offer on the March 31 net assets would be $21.3 million, against $32.3 million at Levels 1 and 2 (our arithmetic). The filings do not say how the fund counts its quarterly-redemption stakes toward the rule.

The five largest lines in the N-PORT at June 30, 2026 are small: Medalist Partners, L.P. ($19.8 million), AG Asset Based Credit Fund LP ($18.8 million), Post Road Real Estate Credit Opportunity Fund LP ($17.3 million), Eldridge Senior Credit Strategies Fund XIV, L.P. ($17.2 million) and Dawson Portfolio Finance Evergreen LP ($16.6 million), together 20.3% of net assets (our sum) across 111 lines. Concentration is not the issue here; the issue is that almost every line is a private fund with its own queue.

Fees: 1.29%, 2.06% and 2.87% are all in the filings

Two things are worth a reader’s attention. The adviser’s waiver is a contract, not a feature: the prospectus says it is “in effect until July 28, 2027,” that the 1.20% limit excludes acquired-fund fees and borrowing costs, and that the adviser “may recoup amounts waived or assumed” for up to three years. And until March 2, 2026 the adviser could also earn an incentive fee, 15% of income above a quarterly hurdle; the annual report says none was accrued or paid and that “as of March 2, 2026, the Adviser no longer changes [sic] an Incentive Fee.” At 0.95% on June 30 net assets, the base management fee comes to about $4.2 million a year (our arithmetic).

Income against the payout

In fiscal 2026 the fund earned $29,316,420 of net investment income and distributed $30,406,738, 96.4% (our arithmetic). That income was after $2,458,097 of waived fees; without them it would have been about $26.9 million, 88.3% of the payout (our arithmetic). The year before, income of $11.5 million covered $13.4 million distributed (85.7%). The fund says it “has consistently maintained its targeted annualized distribution rate of 10%,” which is 10.1% of the March 31, 2026 NAV of $9.72 (our arithmetic). The prospectus warns that distributions may come from “sources that may not be available in the future and that are unrelated to the Fund’s performance, such as from offering proceeds and/or borrowings.”

Two accounting details bear on cash. Dividends receivable, income booked but not yet received, was $11,999,340 at March 31, 2026, up $9,306,213 in the year, against dividend income of $22,674,404. And the NAV quoted in the notices has drifted down: $9.88 in April 2025, $9.77 in April 2026 and $9.62 on October 16, 2026, 2.6% lower than April 2025 before counting distributions (our arithmetic). The fund returned 8.50% in fiscal 2026 against 5.94% for the Morningstar LSTA U.S. Leveraged Loan 100 index, but over three years it returned 7.83% a year against 8.35% for the index.

Leverage

The fund’s limit is one-third of total assets, “33 ⅓ %” in the prospectus. In February 2026 it ended its small $10 million line with U.S. Bank (February 13, 2026) and, on February 27, 2026, signed a 36-month secured line with City National Bank of Florida: $60 million to start, up to $75 million with the accordion, at 1-month CME SOFR plus 3.00%. The annual report says the fund did not borrow from the old line in fiscal 2026, and every N-PORT from September 2024 to June 30, 2026 shows no bank borrowings. The new line equals 13.6% of June 30 net assets (our arithmetic). It is unused so far, but it is there: it is one way the fund could fund a larger offer or capital calls if sales stay low.

What a holder can do with this

• If you want out: requests go to the transfer agent (Ultimus Fund Solutions, Cincinnati) or through your broker, and must arrive in good order by 4:00 p.m. Eastern on November 20, 2026. Ask your broker for its own earlier cut-off.
• If you tendered before: every filed result through February 2026 was below the 5% offer, so the fund did not need to prorate. That is a record of past demand, not a promise about this one.
• If you are staying: the numbers to watch are the August 2026 result (semiannual report to September 30, 2026), quarterly sales in the next N-PORT, any use of the credit line, and whether the waiver is renewed past July 28, 2027.
• If you are weighing a purchase: the only open class has a $1 million minimum; ask what 70.5% of assets valued at private funds’ reported NAV means for how NAV is struck, and how the 2.87% fee table compares with the 1.29% ratio.
• Taxes: the notice says a withdrawal “may be a taxable event.” A tender is generally a sale; see how interval fund sales are reported on Form 8949 and Schedule D. Your CPA can say what applies to you.

Compare funds with similar windows in the Q4 2026 tender deadlines calendar and the private credit redemptions tracker. For a fund whose offers have been filled at 5.00% against larger requests, see Variant’s NICHX. The rules are in 17 CFR 270.23c-3, and the fund’s filings are on EDGAR.

FAQ

All figures are from SEC filings of Nomura Alternative Income Fund (CIK 1944664) read on EDGAR on October 26, 2026: seven Form N-23C3A notices (April 2025 to October 2026), annual reports on Form N-CSR for the years ended March 31, 2024, 2025 and 2026 (accessions 0001580642-24-003058, 0001580642-25-003612 and 0001213900-26-066159), the semiannual report to September 30, 2024 (0001580642-24-007473), the post-effective amendment and prospectus filed July 28, 2026 (0001213900-26-082333) and eight Form N-PORT reports from September 2024 to June 2026, plus 17 CFR 270.23c-3. The number of shares tendered in each offer is not disclosed. Dollar values of holders’ stakes, shares in an offer, percentages, sums and ratios are our arithmetic. Dates of November 20 and 27, 2026 are from the October 23, 2026 notice and can change if the fund extends or amends the offer. This is analysis of public documents, not investment, legal or tax advice, and each investor’s case depends on facts of their own.