At a glance
- The 79% applies to credit interval funds; the 3.9% applies to the interval fund complex as a whole, which reaches beyond credit into real estate, multi-alternative and other sleeves.
- At the third-quarter 79% absorption rate, a credit interval fund raising $100 million of gross sales would add roughly $21 million in net assets.
- CAZ Investments launched the CAZ GP Stakes Growth Fund, an interval fund charging a 1.5% management fee that normally invests at least 80% of its net assets in minority stakes in private asset managers.
Redemptions at credit interval funds absorbed 79% of the gross sales those funds raised in the third quarter, leaving roughly a fifth of new subscriptions as net additions, according to Stanger.
Interval fund assets rose 3.9% in the quarter to $142.0 billion while tender offer funds grew 9.7% to $136.6 billion, the same Stanger report says.
The 79% applies to credit interval funds; the 3.9% applies to the interval fund complex as a whole, which reaches beyond credit into real estate, multi-alternative and other sleeves. On the quarter's percentage gains, tender offer funds grew roughly two and a half times as fast as interval funds, and at $136.6 billion they now sit within $5.4 billion of the interval complex's total.
At the third-quarter 79% absorption rate, a credit interval fund raising $100 million of gross sales would add roughly $21 million in net assets. Repurchase offers at interval funds are capped each quarter, and requests above the cap are filled on a prorated basis, which suggests asset growth at these funds depends at least as much on the payout queue as on distribution.
CAZ Investments launched the CAZ GP Stakes Growth Fund, an interval fund charging a 1.5% management fee that normally invests at least 80% of its net assets in minority stakes in private asset managers. Adams Street's venture and growth evergreen vehicle, a 1940 Act-registered tender offer fund with $363.5 million in anchor capital, opens to qualified investors on Dec. 1 and takes monthly subscriptions.
Reported by The Wrap desk from Stanger and Interval Fund Daily weekly coverage. Published . Corrections
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