Interval Fund Launches: Record Growth Set To Continue in 2025
By any measure, 2024 was a record year for interval funds, and growth is likely to accelerate in 2025. Based on the most recent SEC filings, as of the end of 2024, there are over $95 billion in interval fund net assets, up over 30% compared to the prior year.
Interval Fund Registrations and launches are a reliable forward indicator for future industry growth. This chart shows yearly Interval Fund Launches and Exits along with net assets over the past 10 years.
We count an interval fund as launched once the SEC declares its prospectus effective for public offerings. For the rare privately offered interval fund, we count it as launched once they make the complete registration statement available.
According to XA Investments, in 2024 interval funds spent an average of 193 days in the SEC registration process before going effective. Historically, approximately 17% of interval funds that file a registration statement will fail to go effective within 3 years.
The launching of a new interval fund is the beginning of the sales and distribution process. Some funds quickly raise and deploy capital. Others may take months or even years to reach critical mass. You can keep tabs on recent registration and launches by checking this page.
Interval Fund Exits In 2024
Managers may decide to exit the interval fund market for a variety of reasons. Liquidation is the most common reason, accounting for 50% of exits since 2007. Mergers are the second most common exit, acocunting for 28% since 2007. Sometimes interval funds convert to other structures such as open end funds, or exit the market for other reasons.
Blackstone Floating Rate Enhanced Income Fund liquidated in September 2024. However, this represents a subtle shift in strategy, rather than an exit. Blackstone also registered the Blackstone Private Multi-Asset Credit Fund at the end of August. This fund is currently going through the review process, and will likely launch in 2025.
The Pioneer ILS Bridge Fund also liquidated in 2024. However, Pioneer continues to operate the ILS Interval Fund, which has over $700 million in net assets.
Predex exited the market through merger. It transferred its assets to the USQ Core Real Estate Income in September 2024, and made a final distribution to shareholders.
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