Franklin Templeton and Benefit Street Partners are teaming up to launch a new interval fund: Franklin BSP Private Credit Fund filed an initial draft registration statement on November 18.
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
73% of active funds reported increases in total net assets. Fastest growing funds included offerings from Silverbay, Griffin, Bluerock, and Versus Capital.
- Total Interval fund AUM has declined slightly in the most recent quarter, based on most recent SEC filings. Outflows were concentrated in a small group, and the majority of funds reported AUM growth.
- Losses and oversubscribed redemptions at reinsurance focused interval funds offset new fund launches. Additionally late 2018 equity market volatility also impacted some funds.
- Funds focused on lending and real estate continue to grow rapidly, both through asset price increases, and new investors.
- BlackRock, Cliffwater, Lord Abbett, and One William Street all launched new funds in 2019Q1.
- RiverNorth announced its plan to list its interval fund on NYSE. This is a positive development for the interval fund space.
Total interval fund net assets equaled $27.3 billion as of the most recent public filings, up 27.1% compared to the prior year, but down 0.8% compared to the prior quarter. In late 2018 and early 2019, new fund launches were offset by stock market volatility, and redemptions at funds focused on reinsurance and insurance linked securities.
In the most recent quarter, 34 active interval funds reported net asset increases, and 20 reported net asset declines. Additionally, 11 funds recently launched and have not yet filed their first financial statements. Click here for current AUM data on all 64 active interval funds. Premium members also have access to historical AUM data
Fastest Growing Interval Funds
The following list shows the five fastest growing interval funds, based on net asset growth in the most recent reported quarter:
Tender offer and interval funds have become the structure of choice for alternative asset managers. Nonetheless, a small group of REITs and BDCS continues to raise capital and play an important role in investor’s portfolios.
(Note: this chart includes only new funds registering shares for the first time, and excludes follow-on offerings. Additionally, funds that offer multiple share classes via a master feeder structure are treated as a single fund)
Fundraising in NT REITs and BDCs has mainly consisted of a small group of legacy funds, rather than newly launched funds. Non-Traded REIT fundraising has been dominated by Blackstone, which as over 50% market share. Many legacy non-traded REITs and BDCs have also continued to raise capital through follow on offerings. Yet new fund’s have been few and far between. In contrast, more and more asset managers are launching tender offer and interval funds. As more financial advisers and asset allocators get comfortable with these structures, the trend is likely to continue.
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Premium Members of Interval Fund Tracker can now access a full list of Tender Offer Funds, Interval Funds, Non-Traded REITs and BDCs registrations since 2016.