Saba Capital Management announced it has expanded into public and private business development companies and interval funds, deploying capital into what it calls a NAV dislocation strategy targeting retail investor liquidity needs.

The firm made several investments over recent months, including $40 million in FS KKR Capital Corp. (NYSE: FSK), a publicly traded BDC, and $75 million in Bluerock Private Real Estate Fund (NYSE: BPRE), which converted from an interval fund to a publicly traded closed-end fund. Saba acquired its BPRE position at discounts of 30-40% to net asset value.

Saba also took equity stakes in Apollo Global Management, Ares Management Corporation and Blackstone Inc., three managers in the private credit and alternative asset management sector.

The firm completed tender offers for shares of Starwood Real Estate Income Trust and Blue Owl Capital Corporation II, acquiring approximately $10 million in aggregate face value across 190 separate trades. Following Saba's activity in SREIT, Starwood Capital Group announced a commitment to inject additional equity capital into the fund to accelerate investor redemptions.

The company said it has received interest from registered investment advisers whose clients hold positions in private BDCs and interval funds and are seeking liquidity options. Saba is considering providing bids on additional products, including the Cliffwater interval fund and Blue Owl's OCIC.

Saba is deploying capital into the new strategy focused on NAV dislocations across listed and unlisted vehicles, targeting entry points at discounts of 30-40% or greater to NAV. The strategy covers public BDCs, closed-end funds, investment trusts, REITs, private BDCs and interval funds.

Founded in 2009 by Boaz Weinstein, Saba Capital Management is a global alternative asset management firm with offices in New York City and London.