Stanger Increases 2024 Interval Funds Capital Formation Estimate to $27 Billion
Interval funds had a combined aggregate net asset value of $86.4 billion as of the end of the second quarter in 2024, an increase of 10.9% from the prior quarter. In Q2 2024, nine new funds became effective and 11 more filed new registration statements. There are now nearly 40 pending registrations.
“Following a robust beginning to the year, we anticipate interval funds will achieve capital formation totaling $27 billion in 2024, a 35% increase from the $20 billion raised in 2023. As of May 2024, 28 funds have already surpassed the $100 million mark in fundraising,” said Kevin T. Gannon, chairman and chief executive officer of Robert A. Stanger & Co., Inc. “Notably, Cliffwater-sponsored interval funds remain at the forefront, having amassed an impressive $4.9 billion, accounting for approximately 43% of the $11.4 billion in total gross sales year-to-date through May 2024.”
“Infrastructure-focused funds have recently gained traction, spurred by strong market demand. Year-to-date gross sales have exceeded $144 million, with minimal redemptions of less than $1 million through May,” added Gannon. “Stanger anticipates ongoing expansion in assets under management and new market participants for these funds. Reflecting this trend, we have introduced a dedicated “infrastructure” category in The Stanger Interval Fund Report, encompassing five funds with a cumulative NAV now surpassing $3.2 billion.”
In Q2 2024, Stone Ridge Trust II stood out as the top performer among interval funds, achieving impressive total returns of 5.4% over three months and 39.4% over 12 months. This marks the second consecutive quarter in which they have led the 12-month return rankings.
Additionally, ACAP Strategic Fund led the interval funds with a 25.1% total return over six months, building on its previous top rankings in Stanger’s Q1 2024 report for three-month and 12-month performance.
These results, as well as individual performance data, profiles on currently effective and newly registered interval fund offerings, and fee structure comparisons on 106 interval funds are published in the newly released Q2 2024 edition of The Stanger Interval Fund Report.
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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