Interval Fund Assets now exceed $67 billion, up approximately 14% from the previous year. There are currently 92 active interval funds, of which 86 have reported assets.
Credit continues to be the most popular strategy, with $34 billion in net assets, slightly more than half of total for the sector. Real estate is the second largest, with $21.6 billion, 32% of the total.
This chart shows a snapshot of the interval fund sector based on filings available on June 30, 2023.
Assets in credit interval funds continue to grow as traditional investment firms such as Fidelity begin to recognize the strategic importance of alternative investments and launch new alternative products. Net assets in credit strategies are up 29% year over year. PE/Venture Capital and Multistrategy funds remain small in terms of overall assets, but a few funds in these categories have delivered impressive growth in recent quarters.
This chart shows the year over year growth of interval fund net assets by strategy:
The Ten Fastest Growing Interval Funds
This table shows the ten fastest growing interval funds, based on amount of assets added in the past year:
|Fund||Category||Net Assets MRQ||Growth vs 2022||Annual % Growth|
|Cliffwater Corporate Lending Fund||Credit||$11,076,905,158||$4,334,121,694||64%|
|Bluerock Total Income (plus) RE Fund||Real Estate||$6,626,794,151||$1,396,642,279||27%|
|Cliffwater Enhanced Lending Fund||Credit||$1,478,012,394||$1,005,451,693||213%|
|Variant Alternative Income Fund||Credit||$2,561,219,376||$717,056,005||39%|
|Fundrise Income Real Estate Fund, LLC||Real Estate||$566,524,000||$566,524,000||NA|
|Fundrise Real Estate Interval Fund, LLC||Real Estate||$1,422,748,000||$437,665,000||44%|
|PIMCO Flexible Municipal Income Fund||Credit||$1,739,109,000||$414,459,000||31%|
|Carlyle Tactical Private Credit Fund||Credit||$1,546,958,330||$395,423,398||34%|
|First Trust Alternative Opportunities Fund||Multistrategy||$734,309,223||$384,930,550||110%|
|Lord Abbett Credit Opportunities Fund||Credit||$1,311,753,985||$358,807,938||38%|
As expected, credit funds account for half the funds on the list. Cliffwater sponsors two of these fast growing credit funds: Cliffwater Corporate Lending Fund and Cliffwater Enhanced Lending Fund. These two funds alone account for nearly 19% of total net assets in the interval fund sector.
What about other strategies? First Trust Alternative Opportunities Fund(VFLEX) is single handedly driving the growth in the Multistrategy category. VFLEX uses a multi-manager approach, allocating assets across different equity and fixed income strategies. It more than doubled net assets in the past year, and currently has over $700 million.
Although there are more than 90 active interval funds, AUM is highly concentrated. The ten fastest growing funds account for 43% of total net assets as of the most recent public filings.
Detailed information on fees, fund structures, performance, and historical AUM is available with a Premium Subscription. Questions? Email jacob -at- intervalfundtracker.com