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Defining Interval and Tender Offer Funds

These funds are a type of continuously offered closed-end fund that frequently price shares at net asset value (NAV) but are not listed on an exchange. They are regulated under the Investment Company Act of 1940 (the ‘40 Act) and are registered with the Securities and Exchange Commission (SEC). This structure combines flexible underlying investment options with the investor protections of SEC registration, such as transparency through frequent public filings, an independent board, and audited financial statements.


Interval funds are required to make periodic repurchase offers at NAV of no less than 5% and up to 25% of shares outstanding.

Tender offer funds periodically offer to repurchase shares on a discretionary basis.

Underlying Investments

Open-end mutual funds are generally limited to holding no more than 15% of assets in illiquid investments. Interval and tender offer funds are not subject to this limitation. That is why these fund structures are attractive for a range of private market strategies.

Eligible Investors

Unlike many other private market structures, these funds have no minimum financial suitability requirements, such as being an Accredited Investor or Qualified Purchaser. Individual funds may set their own requirements.

Comparing Interval and Tender Offer Funds

Structure Closed-end Fund Closed-end Fund
Exchange Listed No No
NAV Calculation Weekly/Daily Varies
Redemption Obligation (i.e., liquidity) Mandatory Optional
Redemption Frequency Every 3, 6, or 12 Months Board Discretion
Redemption Threshold 5 – 25% of Shares Outstanding Board Discretion
Liquidity Requirement During Redemption Period Only None
Eligible Investors All – No Requirement All – No Requirement
Minimum Investment (varies by fund) $1,000 – $10,000 $1,000 – $50,000
Tax Reporting 1099 1099
Structure Closed-end Fund
Exchange Listed No
NAV Calculation Weekly/Daily
Redemption Obligation (i.e., liquidity) Mandatory
Redemption Frequency Every 3, 6, or 12 Months
Redemption Threshold 5 – 25% of Shares Outstanding
Liquidity Requirement During Redemption Period Only
Eligible Investors All – No Requirement
Minimum Investment (varies by fund) $1,000 – $10,000
Tax Reporting 1099
Structure Closed-end Fund
Exchange Listed No
NAV Calculation Varies
Redemption Obligation (i.e., liquidity) Optional
Redemption Frequency Board Discretion
Redemption Threshold Board Discretion
Liquidity Requirement None
Eligible Investors All – No Requirement
Minimum Investment (varies by fund) $1,000 – $50,000
Tax Reporting 1099


icon-open-hand-with-coinLow investment minimums

icon-clipboard-with-checksNo minimum financial suitability requirements

icon-accessibilityAccess to private market strategies

icon-tax-reporting-v021099 tax reporting

icon-less-volatilitySome liquidity provisions

icon-investor-protections-v02SEC and ’40 Act investor protections


Key risk considerations may include, but are not limited to, the following:

icon-liquidityLiquidity: Interval and tender offer funds have limited liquidity, therefore, investors may not receive the amount requested due to oversubscribed redemptions.

icon-feesFees: Interval and tender offer fund fees are generally higher than those associated with traditional investments.

icon-calendarCash drag: Private market investments may take weeks or months to move from identification to acquisition, which can lead to a reduction in fund performance.

icon-strategyUnderlying assets and strategy: Each underlying asset and strategy will exhibit their own inherent risks.

icon-long-term-investmentLong-term investments: Private market strategies should be considered long-term investments.

Please contact your financial professional or a fund manager to learn more.



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