- Morningstar data covering roughly 88% of unlisted interval fund AUM shows private credit interval funds continued to generate net inflows through 4Q25, despite increasing market concerns around private credit.
- These positive flows may obscure elevated redemption demand, as limited quarterly liquidity can prevent investors from redeeming in full.
- If redemption requests remain fully subscribed and are met on a pro-rata basis, investor awareness may grow, slowing inflows and potentially leading to net outflows over time. In this scenario, fund- or market-level stress could take several quarters to become visible in net flow data.
- To protect future marketability, managers should actively manage redemption pressure, including flexing or increasing repurchase offers when feasible.
