• Unlisted closed-end fund assets topped $102 billion as of 2Q22. It remains a small market compared to mutual funds and ETFs, with just 153 unique offerings, including 74 interval, 70 tender-offer, and 9 term trusts.
• Currently, the majority of unique funds in registration are interval structured. A number of managers that have focused on traditional long-only investments are building out alternative investment capabilities and are eyeing the interval structure as a way to package private equity, private credit, and other alternative strategies to the mass affluent.
• Franklin Templeton and Fidelity have made headlines recently in this area, with Franklin launching its first interval fund, Franklin BSP Private Credit Fund, and Fidelity filing its interval-structured Multi-Strategy Credit Fund.
• Challenges including the operationally cumbersome nature of this investment vehicle and substantial seed money requirements are important considerations as managers contemplate launching unlisted closed-end funds.

Unique Unlisted Closed-End Funds Offered, 2Q22

Source: SEC Filings, FUSE Research Analysis