Interval Funds

PROBLEM

Reduced liquidity, valuation uncertainty, leverage, and concentration can heighten volatility and delay exits; investors may receive less than their full tender request during oversubscribed intervals.

Non-Listed Interval Fund Risk: Interval funds have the feature of being purchased and sold at NAV, however in most cases the purchase can be daily and the redemption is often quarterly. Many funds allow 5% of their assets each quarter to be tendered, but this level and schedule can be fund specific. If many investors want out of a fund in the same quarter, it can take a long time to fully redeem. Most custodians also charge a small fee each time a purchase or sale is submitted for an Interval Fund. The primary reason for this fund feature is the holdings tend to be 70%+ private equity, debt or level 3 assets