(Note: Information in this post was subsequently updated Here) 2016 was a historic year for interval funds. The number of funds doubled, new sponsors entered the space, and a clear trend towards credit strategies emerged. Download the free Interval Funds Year In Review for details. To access the research, fill out the contact form below. […]
Barron’s featured a story on interval funds this weekend- Interval Funds: Making the Best of Illiquid Assets.
Here are a few highlights:
“One of the conundrums facing income-seeking investors is that some of the highest-yielding securities are the toughest to buy and sell…”
“Interval funds are offering individual investors access to strategies and asset classes that they aren’t focused on, and maybe they should be…”
“There are a lot of open-end funds that might be better off as interval funds.”
FS Investments registered the FS Energy Total Return Fund on October 25. The fund will seek to raise up to $2 billion. The minimum initial investment for Class A and C shares will be $2,500, and the minimum investment for the institutional class I shares is not yet set. Class A Shares have a upfront commission, while Class C Shares have a no upfront fee, but instead have an ongoing servicing fee.
Magnetar Capital, which became famous for making massive profits during the financial crisis, will serve as the sub-adviser. Institutional Investor’s Hedge Fund Report Card ranked Magnetar as one of the top hedge funds in the world in 2015.
Two new interval funds were registered on October 19:
NorthStar/Townsend Institutional Real Estate Fund Inc , which will invest in commercial real estate and real estate debt.
Versus Capital Real Assets Fund LLC , which will invest in global infrastructure, timberland, and farmland.
For more interval funds in registration, or newly effective see Tools and Data
Recently there was a Great article by Maks Financial Services on Seeking Alpha.
The whole piece is worth reading, but here is one of our favorite quotes:
“Rather than think of interval funds as mutual funds with limited liquidity, you can view certain intervals as hedge funds with more transparency.”