Once considered obscure and underutilized, interval funds are emerging as powerful tools for investors seeking access to private markets without sacrificing structure or transparency.
Kimberly Flynn, President of XA Investments, has long believed in their potential, seeing them as a middle ground between illiquid alternatives and mainstream accessibility. With investor interest in non-traditional assets on the rise, these funds are experiencing a surge in growth, gaining attention for their ability to offer periodic liquidity while deploying capital efficiently.
Unlike mutual funds, which must maintain daily liquidity, interval funds can hold private assets and still meet redemption requests through built-in buffers and structured liquidity schedules. The uptick in SEC filings, new entrants like KKR and Hamilton Lane, and record inflows suggest that momentum is accelerating, positioning interval funds as a cornerstone of the alternative investing landscape.
Finsum: Interval funds are meeting a specific need right now, and investors willing to sacrifice a little liquidity might be able to get better returns.