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 […]
In 2020, the world received a series of dangerous crash courses on epidemiology, exponential growth, and social psychology. When the Covid-19 pandemic broke out in the first quarter, the OECD Composite Leading Indicator showed the sharpest monthly drop in economic activity ever recorded. Governments around the world responded to the pandemic with stimulus plans unprecedented […]
The increasing popularity of high yield bond funds brings the issue of liquidity mismatches to the forefront. There are plenty of opportunities in credit, but investors need to find the right vehicle for the right strategy. When the average high yield bond only trades nine times per week, a daily liquidity structure such as a […]
- 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.