- Interval fund net assets have grown to over $40 billion, up over 29% from a year ago.
- Fifteen interval funds have filed initial registration statements so far in 2021, including a record ten new registrations in the second quarter alone.
- The most popular asset classes based on net assets include credit, publicly traded equity, and real estate.
- Private equity and venture capital interval funds are increasingly prominent.
Total net assets in the interval fund market are now over $40 billion, up 29% from a year ago. There are currently 67 active interval funds with reported assets, up from 64 a year ago. There are another six funds that have launched recently, but had not yet reported fundraising numbers at the end of 2021Q2. This chart shows the long run growth trend in the interval fund market:
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Interval Fund Strategies
The interval fund is a flexible structure that can work with a wide range of asset classes and strategies. This chart shows total interval fund assets by asset class.
Credit is the largest category, accounting for 32% of total net assets. The largest credit funds include Stone Ridge Trust V, with $2.3 billion in net assets, PIMCO Flexible Credit Income Fund, with $1.9 billion, and Cliffwater Corporate Lending Fund with $1.3 billion. There are a wide variety of niche credit strategies available in the interval fund market.
Publicly traded equity is the second largest interval fund category based on total net assets, even though it includes only two funds. ACAP Strategic Fund, with $11.4 billion in assets, invests in publicly traded growth stocks. Silver Bay Capital Management is the advisor to this fund. Weiss Strategic Interval Fund follows a long/short fundamental equity strategy, and currently has $320 million in net assets.
Real estate is the third major asset class available in the interval fund market. Griffin Institutional Access Real Estate Fund is the largest real estate fund, with $3.9 billion in net assets. Bluerock Total Income (Plus) Fund is close behind with $2.5 billion. Both Griffin and Bluerock have deep real estate expertise and well developed distribution channels from their real estate investment trust businesses.
Private equity and venture capital
Private Equity and Venture Capital is still a relatively small segment of the interval fund market, but it is growing quickly with two notable launches in the past year. Bow River Capital Evergreen Fund launched at the end of 2020, and already has over $100 million in net assets. It will invest in a targeted mix of growth orientated private equity investments, private credit, and liquid securities. Primark Private Equity Assets Fund launched in August 2020, and has over $20 million in net assets. It will invest in direct investments, public companies that invest in private businesses, and private equity funds.
The Sharespost 100 Fund, which launched in 2014, was a proof of concept for PE/VC investing in the interval fund structure and now has over $500 million in assets. According to a recent Fact Sheet, major holdings include Marqueta, Space Exploration Technologies, Sofi, and Udemy.
New Interval Fund Registrations
New interval fund registrations have surged in 2021. The second quarter of 2021 set a new record, with ten new funds filing initial registration statements with the SEC. This followed five new registrations in the first quarter. For a complete list of all 35 interval funds pending registration, click here
This table shows the ten interval funds that registered in 2021Q2.
|Fund Name||Registration Date||Strategy|
|BNY Mellon Alcentra Opportunistic Global Credit Income Fund||4/1/2021||Credit|
|Thirdline Real Estate Income Fund||4/13/2021||Real Estate|
|Lord Abbett Special Situations Income Fund*||4/16/2021||Credit|
|AL Venture Fund LLC||5/3/2021||Equity|
|Basquet Global DEbt Fund||5/6/2021||Credit|
|ECP Essential Infrastructure Income Fund||5/7/2021||Other|
|Invesco Dynamic Credit Opportunity Fund*||5/7/2021||Credit|
|Fundrise Growth Tech Interval Fund||6/16/2021||Equity|
|Monachil Credit Income Fund||6/21/2021||Credit|
|Lind Capital Partners Municipal Credit Income Fund||6/29/2021||Credit|
*SEC Declared Effective
Interval funds conducting public offerings must file initial registration statements with the SEC. Once the SEC declares their registration statement effective, they are allowed to start raising capital.
New Interval Fund Launches
After a slow first quarter, interval fund launches picked up pace. So far in 2021, the SEC has declared effective six interval fund registration statements, bringing $1.4 billion in new equity for sale into the market. All six of these funds follow different credit strategies.
|Fund Name||Effective Date||Investment Strategy||Maximum Offering Proceeds|
|PIMCO Flexible Emerging Markets Income Fund||7/29/2021||Credit||$500,000,000|
|Invesco Dynamic Credit Opportunity Fund||7/21/2021||Credit||$375,000,000|
|Lord Abbett Special Situations||7/16/2021||Credit||$100,000,000|
|Nuveen Municipal High Yield & Special Situations Fund||6/29/2021||Credit||$68,000,000|
|Cliffwater Enhanced Lending Fund||6/24/2021||Credit||$300,000,000|
|AFA Multi-Manager Credit Fund||5/25/2021||Credit||$100,000,000|
A complete list of interval fund launches is available here.
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