Interval Fund Tracker keeps tabs on the best industry research covering interval funds. See the Research section for additional resources and ongoing updates.
Here are the Top 5 Interval Fund Whitepapers in the industry today.
Best balanced review of the benefits and challenges of interval funds and other continuously offered closed-end funds. It also puts interval in their proper context in the broader fund universe. This is a must read for any Sponsor that is considering launching a fund, or any BD/RIA that plans to offer interval funds. A few key quotes:
Finally, with much of the negative press associated with non-traded REITS, and an unwillingness among many advisors to invest in business development companies (BDCs), an interval or tender offer closed-end fund structure might be a better option for managers seeking to introduce new and less-liquid real estate or energy investment strategies…
…Sponsors of interval funds need to ensure their national account, sales, marketing and product teams are working symbiotically to educate and engage advisors at the right time during their decision-making process. This includes both in-person and digital engagement. Naturally, some broker/dealer platforms are more receptive than others. Several asset managers have found a receptive home for their interval funds among small- to mid-size broker/dealers. In those cases, the firm’s National Accounts team diligently identified the fund needs of the platform, and worked closely with the platform gatekeepers to position the fund. In addition, they selected several members of their internal/external sales team to actively support platform advisors…
Introduction and Overview of 40 Act Liquid Alternative Funds – Citi Prime Finance
Also a big picture overview of the broader fund universe in which interval funds fit. Note that its primary focus is funds with a higher net worth requirement.
Concise and accurate.
“Interval Alts” Combine Benefits of Alternative Mutual Funds and Traditional Hedge Funds – Hedge Fund Law Report, July 28, 2016.
Good overview for a Sponsor considering launching a fund. A couple key quotes:
…Interval Alts offer a number of key advantages over liquid alts. First, there are no liquidity restrictions, whereas liquid alts may only hold up to 15% of their assets in illiquid securities. Thus, certain, more illiquid hedge fund strategies are better suited as an Interval Alt as they cannot employ the same strategy in a liquid alt.
In addition, liquid alts are subject to daily fluctuations in assets (which sometimes can be significant) due to daily subscriptions and redemptions, potentially disrupting the manager’s ability to employ its investment strategy in a consistent manner. Interval Alts (which are not subject to daily flow activity) allow the manager greater ability to align the fund’s strategy to the sister hedge fund.
Also, like hedge funds, Interval Alts are permitted to effect margin borrowings directly from their prime brokers (subject to Investment Company Act limitations on leverage), whereas liquid alts may only borrow from banks.
In short, Interval Alts afford managers greater flexibility to mimic their hedge fund products, while also allowing them to access broader distribution channels than pure hedge funds…
As publicly offered products, Interval Alts inherently offer increased marketing flexibility through: (1) greater freedom to advertise/market broadly (e.g., without the requirement for a pre-existing relationship); (2) allowance for an unlimited number of investors; and (3) the lack of any requirement that investors satisfy “Qualified Purchaser” eligibility standards (generally, investors with $5 million of net investments); however, if the Interval Alt pays a performance fee on gains, the fund may only be sold to “Qualified Clients” (generally, investors with $2 million of net worth, excluding their primary residence).
Interval Fund Investing: Institutional Access – Resource Real Estate
A bit of a puff piece, but still useful.