• 2021 was a notable year for rights offerings, with gross proceeds exceeding $1.6 billion. BlackRock, Cornerstone, and Liberty claimed the top 3 rankings by gross proceeds, respectively. At the fund level, Cornerstone Strategic Value and Cornerstone Total Return funds raised a combined total of $625.8 million, while BlackRock Science & Technology Trust raised $359.3 million, and Liberty All-Star Equity raised $217.2 million.
• Approximately half of the strategies that raised new capital were predominantly equity-oriented, a trend that may have been tied to the record year in broad equity market growth. Generally, after rights offerings are announced, spreads to NAV tend to narrow as the new capital drives up the value of the closed-end fund shares and catches up to the value of the underlying holdings of the fund.
• Also, the heightened activity may have been associated with the sustained thirst for alternative investments and more attractive income streams, which many closed-end funds are known to provide.

Historical Rights Offerings and Proceeds

Source: Morningstar, CEFA, Regulatory Filings