1940 Act Fund Advisory / Rights Offerings

Closed-End Fund Rights Offering Advisory

Chatsworth Securities advises boards of directors and trustees, fund sponsors, and management teams on the analysis, structuring, planning, and execution of rights offerings for closed-end funds registered under the Investment Company Act of 1940. We focus on funds with a sound investment case and a strong trading profile, where additional capital can be raised in a manner designed to benefit shareholders, bring new investors into the fund, provide capital to invest in new investment opportunities without having to sell existing positions, and maintain institutional credibility throughout the process.

Advisory mandates documented in public SEC filings across multiple fund families and asset classes from 2005 through today.

Established Rights Offering Advisory Practice
Decades of experience supporting closed-end fund rights offerings and shareholder transaction initiatives.
100+ Rights Offerings Reviewed
Continuous monitoring and analysis of publicly disclosed closed-end fund rights offering transactions.
Longstanding Market Participation
Experience across multiple market cycles, fund structures, asset classes, and shareholder environments.
Closed-End Fund Capital Markets Advisory
Experience advising on rights offerings, shareholder transactions, and capital formation initiatives involving closed-end funds.
Advisory Services

Advisory for Boards, Sponsors, and Fund Management

At Chatsworth, we look at raising capital in the secondary market differently than most others. We focus on funds that have a solid investment case and trade well. We work with each fund to structure the terms that are most appropriate for the fund and would enable significant capital to be raised in a prudent manner while improving the visibility of the fund. As Advisor/Consultant for the offer, we provide comprehensive market analysis, structuring advice, and strategic planning. We also take the burden of offer execution from the fund management team while offering a significantly more cost-effective alternative to a traditional dealer-manager.

01
Analysis
We advise on market conditions and timing considerations.  We continuously monitor the closed-end fund universe and have analyzed the 100+ rights offerings (transferable and non-transferable) completed over the past twelve+ years.
02
Structure
Achieving the objectives of the offering while minimizing NAV dilution is a key consideration in determining the offering structure. We analyze each fund and work to develop an offering structure best suited to provide a net benefit to shareholders and achieve the objectives of the offering.
03
Support the Board
Prepare analysis and reporting to support trustee and director review, covering purpose, dilution, expenses, market impact, and shareholder benefit. Chatsworth's advisory role includes support related to the SEC's Net Benefits framework in applicable situations under the 1940 Act.
04
Coordinate
Work with fund counsel, the subscription agent, the information agent, the listing exchange, and all required service providers from initial planning through closing. Chatsworth manages this coordination so management can focus on investment decisions and investor communication.
05
Communicate
Assist management in framing the investment case and developing a shareholder communication program that supports informed participation. A well-executed rights offering is also an opportunity to re-introduce the market to the fund's investment case and strengthen investor awareness.
06
Strategic Planning & Execution
A successful rights offer must be well-planned and well-executed. This requires experience and focused effort beginning before Board consideration through to post-closing. Our role is to advise and to commit the time, expertise, and detailed effort that are needed to ensure a successful offering.
Our Differentiation

Why Chatsworth

Chatsworth occupies a highly specialized position in the U.S. closed-end fund rights offering market, with publicly documented advisory mandates across multiple fund families and asset classes since 2005, and directly relevant senior experience in closed-end fund product development, market structure, and equity capital markets execution.

Sustained Analytical Experience in the CEF Rights Offering Market
Chatsworth has continuously monitored the closed-end fund universe for over twelve years and analyzed more than 100 rights offerings across fund types, structures, and market conditions, building the comparative judgment applied to structure design, timing, and board analysis on each specific engagement. Public SEC filings confirm advisory mandates spanning international equity, high yield, real estate income, floating rate debt, and credit strategies funds, including recent engagements involving Nuveen and CBRE funds.
100+ Rights Offerings Analyzed
Advisory Scope That Extends Beyond Capital Introduction
Chatsworth's documented mandate covers market analysis, offering structure, dilution analysis, subscription mechanics, board support and record preparation, service-provider coordination, shareholder communication, and SEC filing review. That scope is materially broader than the role of a generic capital introducer or distribution-focused dealer-manager. Chatsworth functions as an integrated advisor to the board and management team from initial feasibility through execution and post-closing review.
Board-Oriented Advisory
Specialized 1940 Act and Closed-End Fund Experience
The practice reflects the complementary expertise of Tim Sullivan, Dennis Emanuel, and Lee Gerkin across closed-end fund product development, ETF and CEF market structure and research, and equity capital markets execution. Their collective experience spans IPOs and secondary capital raises in the closed-end fund market, covering the analytical, strategic, and transactional dimensions that a rights offering advisory mandate requires under the 1940 Act.
1940 Act Depth
Focused Advisory Model with Aligned Economics
Chatsworth's engagement is structured around the fund's interests and shareholder outcomes. The firm is specialized, selective, and built specifically for the closed-end fund rights offering market rather than as a general capital markets intermediary. That focus produces a more aligned advisory relationship and a more cost-effective engagement than a traditional dealer-manager structure, though the primary advantage is advisory discipline rather than price.
Independent Advisory

Ready to Review a Rights Offering Opportunity?

Chatsworth advises closed-end fund boards of directors, trustees, fund sponsors, and management teams on rights offerings under the Investment Company Act of 1940, from initial feasibility through execution and closing.