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1095 Avenue of the Americas
New York, NY 10036-6797 +1 212 698 3500 Main
+1 212 698 3599 Fax
www.dechert.com
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JONATHAN GAINES
jonathan.gaines@dechert.com
+1 212 641 5600 Direct
+1 212 698 3599 Fax
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Re: |
CION Ares Diversified Credit Fund, File No. 333-212323 (the “Fund”)
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1. |
Comment: Please discuss the purpose of amending the Existing Advisory Agreement in the shareholder letter accompanying the proxy statement. In addition,
please state the projected impact of the Amended Advisory Agreement on the advisory fees payable by each of class of the Fund.
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2. |
Comment: Please also discuss the purpose for amending the Existing Advisory Agreement under “Proposal
1–Approval of the Third Amended and Restated Investment Advisory Agreement–Background.” In addition, please explain how Fund shareholders would be affected if the proposed Amended Advisory
Agreement were approved.
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3. |
Comment: Please revise the description of the existing Incentive Fee (including, in particular, the operation of the “hurdle rate” and “catch-up” feature)
in plain English. In addition, where applicable, please clarify that the relevant percentage rates refer to a percentage of the Fund’s Adjusted Capital.
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4. |
Comment: Please provide a table showing the current and pro forma advisory fees under the Existing Advisory Agreement and Amended Advisory Agreement, respectively. See Item 22(a)(3)(iv) of Schedule 14A.
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5. |
Comment: The Staff notes that the purpose of replacing Adjusted Capital with net asset value in the denominator of the Incentive Fee equation is to
mitigate a substantial operational challenge for the Advisor. Please explain whether this change would have the effect of reducing fees for the Fund.
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6. |
Comment: Please revise the disclosure under “Proposal 1–Approval of the Third Amended and
Restated Investment Advisory Agreement–Proposed Changes to the Incentive Fee” to clarify that the examples are hypothetical. In addition, please define “NII,” as such term is used throughout the
tables.
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7. |
Comment: Please include the name and address of the Fund’s adviser, administrator and distributor. See Item 22(a)(3)(i) of Schedule 14A.
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8. |
Comment: Please provide the Staff with an opportunity to review the proxy card before filing the definitive proxy statement.
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9. |
Comment: Please indicate whether any of the Advisor’s officers as listed in Exhibit C also serve as officers to the Fund. See Item 22(c)(5) of Schedule
14A.
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10. |
Comment: Please confirm that the disclosure satisfies all other requirements of Item 22(c) of Schedule 14A (as applicable).
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/s/ Jonathan Gaines
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Jonathan Gaines
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