Wall Street Has a Hot Way to Sell Private Assets to the Masses.

Individual investors; Alternative investments; Financial markets; Financial institutions; Mutual funds; Capital market; Liquidity (Economics); Vanguard Group of Investment Cos.

The article discusses the resurgence of interval funds as a means for individual investors to access private assets, with major investment firms like Vanguard Group, Capital Group, and TCW Group leading the charge. In 2023, 25 new interval funds have launched, bringing the total to 142, surpassing last year's record within just six months. Interval funds allow for withdrawals at predetermined intervals, typically quarterly, and are not bound by the SEC's 15% cap on illiquid investments, making them attractive for both issuers and investors. Despite higher fees and investment minimums compared to ETFs, the structure is seen as a balanced solution for accessing private markets while managing liquidity. [Extracted from the article]

Copyright of Bloomberg.com is the property of Bloomberg, L.P. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)