Alternative investments are no longer alternative- they’ve become an essential part of retirement planning. Retirees are increasingly investing in non-traded REITs, interval funds, and private placements in order to generate income and grow their assets.
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: