5 Fastest Growing Interval Funds: 2019Q3 Update
- Interval fund net assets topped $30 billion in the most recent quarter. Over 75% of active funds reported net asset increases in their most recent public filings
- Strong performance has driven solid fundraising at Long/Short Equity, Real Estate, and Credit strategies are all included in the list of fastest growing funds.
- Fastest growing interval funds in the latest quarter include offerings sponsored by Silverbay, Griffin, BlueRock, Cliffwater, and Pimco.
- Three new interval funds launched in the third quarter, bringing an additional $2.2 billion in shares for sale into the market. Additionally there are another 25 interval funds pending registration with the SEC.
Asset Growth
Total interval fund net assets equalled $30.8 billion as of the most recent public filings, up 12% compared to the prior year, and up 5% compared to the prior quarter.
In the most recent quarter, 45 active interval funds reported net asset increases, and 14 reported net asset declines. Several active funds launched during the quarter, and have not yet reported net assets. Click here for AUM data on all active interval funds.
Fastest Growing Interval Funds
A wide variety of strategies can succeed in an interval fund structure The top five fastest growing funds include one long/short equity, two real estate, and two credit funds. Getting structure and strategy right, then delivering solid performance are essential to succesful fundraising.
| Fund | Fiscal Year end | Date of Most Recent Reporting Period | Increase in Net Assets | Strategy |
| ACAP Strategic Fund | September 30 | June 30 | $406,306,488 | Other: Long/Short Equity |
| Griffin Institutional Access RE Fund | September 30 | June 30 | $313,698,374 | Real Estate |
| Bluerock Total Income (plus) RE Fund | September 30 | June 30 | $220,264,268 | Real Estate |
| Cliffwater Corporate Lending Fund | December 31 | June 30 | $155,266,173 | Credit |
| PIMCO Flexible Credit Income Fund | June 30 | June 30 | $132,601,000 | Credit |
Long/Short Equity
ACAP Strategic Fund is a long/short equity fund with an objective of achieving maximum capital appreciation. Its strategy experienced some volatility in late 2018 but came surging back in 2019. Overall its delivered solid performance since launching in 2014. ACAP Strategic Fund is managed by Silver Bay Capital, which is owned by Alkeon Capital Management.
Real Estate
Griffin Institutional Access Real Estate Fund and Bluerock Total Income(Plus) Real Estate funds follow similar strategies, and have both delivered consistent income and also grown NAV since launching. Both funds focus on investing in institutional private real estate funds ad public real estate securities. Griffin’s real estate interval fund launched in 2014, and Bluerock’s launched in 2012. Both sponsors have established distribution channels in the independent broker dealer space through their non-traded REIT businesses. The wirehouses have also increasingly taken an interest in real estate strategies that can deliver income with lower volatility.
Credit
Cliffwater Corporate Lending Fund launched in March of this year, and raised over $150 million within a few months. This fund uses a multi-manager approach to invest in various high yield corporate debt. Pimco Flexible Credit Fund follows a multi-sector credit strategy, with investments in corporate, mortgage, consumer, emerging market, and municipal credit markets. Pimco Flexible Credit Fund launched in 2017.
New Interval Fund Launches
The SEC declared effective 3 new funds effective in 2019Q3, bringing $2.2 billion in new shares to the market. Additionally there are 25 interval funds pending SEC approval.
This tables shows funds that launched public offerings in 2019Q3:
| Fund Name | Effective Date | Investment Strategy | Maximum Offering Proceeds |
| FNEX Ventures | 2019-09-23 | Other: Venture Capital | $75,000,000 |
| A3 Alternative Credit Fund | 9/12/2019 | Credit | $100,000,000 |
| FS Multi-Alternative Fund | 8/2/2019 | Other | $2,000,000,000 |
Subsequent to the end of the quarter, Hartford Schroders Opportunistic Income Fund launched its public offering. Click here for more data on intervalfund launches.
Interval Fund Performance
Detailed total return data for interval funds is available in the premium section. Here are some highlights from returns that funds have reported so far this year:
- Weiss Strategic Interval Fund, and Zazove Convertible Securities Fund were top performers for the first half of the year.
- Credit and real estate strategies have all reported solid performance across the board.
- Several insurance linked securities funds experienced drawdowns and outflows as a result of weather events.
Research and Media Coverage
Retail Growth for Interval Funds on the Horizon Hedge Week
Full Spectrum Investing: A Case Study With Muncipal Bonds Seeking Alpha
CION Investments Sees Growth of Interval Fund Structure Across Multiple Channels Yahoo Finance
Alternative Fixed Income Seen As An Opportunity Financial Advisor
For more media coverage and sector research from across the industry, see the Research section of this site.
See the Tools and Data section for more charts and downloadable spreadsheets. Additional detail including open source code used on this site is available in our Github Account.
Fund Sponsors and investors seeking detailed competitive intelligence on the interval fund sector should see Interval Fund Tracker’s Premium Offering.
