- 1Q24 witnessed the most significant single-quarter growth in net assets for the unlisted closed-end fund (CEF) universe, with assets under management (AUM) rising from $132.6 billion to $143.2 billion—an impressive increase of $10.6 billion, or 8.0%. This growth was predominantly driven by private equity funds, which saw their AUM increase by $3.5 billion, representing an 11.0% spike.
- The expansion in the unlisted CEF market was fueled by both established firms and an influx of new entrants. Between March 31, 2023, and March 31, 2024, 17 new firms entered the market, and 34 new funds were launched. By the end of 1Q24, these new funds collectively held $5.4 billion in net assets.
- Notably, Cliffwater Corporate Lending Fund, the largest unlisted CEF, experienced a $1.9 billion increase in net assets during 1Q24, bringing its total net assets to $17.4 billion. As discussed in a recent interview with WealthManagement.com, Cliffwater’s CEO, Stephen Nesbitt, attributed the fund’s asset-raising success to its ability to effectively connect with RIAs through its salesforce of 27 salespeople.
