Interval Funds on Pace to Reach $100 Billion Aggregate NAV by Year’s End
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According to recent data by investment banking firm Robert A. Stanger & Co., Inc., interval funds had a combined aggregate net asset value of $93.4 billion at the close of the third quarter in 2024, an increase of 8.1% from the prior quarter and 27.2% since the end of 2023. In Q3 2024, five new funds became effective and 12 more filed new registration statements, bringing the total number of pending registrations to 34.
“Funds focused on credit investments continue to dominate the interval fund space, accounting for four out of five newly effective funds and 11 out of 12 new registrations this quarter. While these funds make up just under 60% of the total tracked by Stanger, they have attracted nearly 84% of the $18.3 billion raised by interval funds year-to-date through August,” said Kevin T. Gannon, chairman and chief executive officer of Stanger.
“This success is largely driven by Cliffwater-sponsored interval funds, which continue to dominate fundraising with a 48% market share of gross fundraising. Meanwhile, redemptions continue to decrease as a percentage of gross sales, falling to 36.9% year-to-date through August – the lowest level since 2022, and aligning with what we view as a normalized rate for interval funds,” added Gannon.
Blackstone – the world’s largest alternative asset manager with more than $1.1 trillion in assets under management – registered Blackstone Private Multi-Asset Credit Fund with the U.S. Securities and Exchange Commission in August 2024.
Also according to previous reporting by The DI Wire in July 2024, applicants Fidelity Diversifying Solutions LLC and Fidelity Distributors Company LLC sought SEC approval to advance Fidelity Floating Rate Opportunities Fund – a diversified, closed-end management investment company that will operate as an interval fund.
In Q3 2024, Cantor Fitzgerald Infrastructure Fund stood out as the top performer among interval funds, achieving total returns of 8.8% over three months, narrowly edging out Q2’s top performer, Stone Trust II. After leading three-month returns in Q2, Stone Trust II was the top six-month performer in Q3 with returns of 14.2%. ACAP Strategic Fund built upon its previous top six-month ranking in Q2, finishing atop the 12-month return rankings with 39.9%. This marks the first time this year Stone Trust II did not lead 12-month returns, having dropped to the number two spot with 34.2% total returns.
Robert A. Stanger & Co., Inc., founded in 1978, is an investment banking firm specializing in providing investment banking, financial advisory, fairness opinion and asset and securities valuation services to partnerships, real estate investment trusts, and real estate advisory and management companies in support of strategic planning and execution, capital formation and financings, mergers, acquisitions, reorganizations, and consolidations.
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