From Yahoo Finance: 2025-06-09 08:00:00

Interval funds are gaining popularity as investors seek access to private markets, with 25 new funds launched this year, bringing the total to 139 with $100 billion in assets. These funds offer better yields and access to assets like private credit, attractive to those willing to sacrifice liquidity for returns.

Asset managers like TCW have introduced new interval funds, and Blackstone, Wellington, and Vanguard collaborated on a joint fund. These funds, similar to mutual funds, allow investors access to private assets not easily available in public markets. Unlike ETFs, they offer quarterly redemptions, enabling investment in esoteric assets like asset-backed finance.

Financial advisors like Tom Balcom are increasingly allocating client money to interval funds to meet demand for private credit exposure. These funds provide higher yields in exchange for less liquidity and carry higher fees. For example, TCW’s Private Asset Income Fund focuses on private asset-backed credit in various sectors.

While interval funds thrive, ETF issuers face challenges breaking into the private asset market. The SPDR SSGA Apollo IG Public & Private Credit ETF (PRIV) has struggled since its launch, with no inflows since early March. The SEC has raised concerns over liquidity and naming issues with the fund, highlighting the appeal of interval funds to investors seeking private market access.

Read more: Interval Funds Having Big Year on Private Credit Demand