In an increasingly competitive capital raising environment, asset managers need to differentiate themselves by developing investment strategies that may add true value returns to investor portfolios at attractive price points. Thoughtful product structuring is the first step that advisers should consider in delivering investment solutions to the market. Interval funds are compelling structural innovation that is being better understood and utilized across the industry. For retail investors, an interval fund may be the best way to access asset classes and strategies invested in real estate and private/structured credit that may have been typically reserved for institutions. Many of the world’s top traditional and alternative fund managers have launched interval funds in recent years as the adoption of these products continues to grow and bring unique asset classes to a wider audience.
Before entering the interval fund market, an asset manager should have a solid understanding of the competitive landscape. One area of focus for asset managers new to this space is fee structures. This report uses Interval Fund Tracker’s database to provide a broad overview of fee structures across today’s interval fund market. It includes detailed quantitative analysis of fee levels for different strategies and trends across the entire industry.
To assist advisers considering the unlisted closed end fund wrapper for new products, Ultimus’ Nick Darsch, Managing Director, and Sean McLean, SVP Retail Alts, collaborated with Interval Fund Tracker’s Jacob Mohs, Managing Member, to examine predominant fee structure options and trends across various strategies in the interval fund marketplace targeted to retail and high-net-worth investors.