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The 2023 ExchangeETF Conference was an important gathering for the ETF industry and ETF-centric advisers in what may be a pivotal year that could usher in more growth and innovation. With over 3,000 ETFs in this now crowded market, and 2023 set for a possible record year for launches, sorting through the ETF universe and taking advantage of key trends and enhanced business innovation is critical to success. In addition to our active participation in the conference, we wanted to write a review and share our thoughts on this year’s event to give our partners and clients a deeper sense of the trends within the ETF marketplace.

Launching an interval or tender offer fund is like playing a multi-level chess game. There is a great deal of complexity in taking advanced investment strategies and designing, maintaining, and selling these 40 Act investment vehicles. Intensive strategy and deliberate planning are needed to grapple with their specific idiosyncrasies. It is important to note that there is nothing magical about these fund structures that inspires a Field of Dreams “if you build it, they will come” response and, oftentimes, it becomes a challenging period between fund registration and reaching $100 million in assets under management, otherwise known by some as the “Valley of Death”.

Asset managers must continuously adapt to changes in their operating environment. Whether it be market or regulatory driven changes, cost pressure, changing dynamics within their investment strategies, and the added complexity of new asset types, the common denominator that underlines everything an asset manager needs for success is their investment data.

Interval and Tender Offer funds provide investors an opportunity to gain exposure to alternative investment strategies that have been traditionally offered through private fund vehicles. Many of these strategies involve investing in assets that are considered illiquid. If you are a fund sponsor who is considering launching an Interval or Tender Offer fund, understanding how to establish a valuation policy for illiquid assets will be a key area of focus for you.

Investor Services is a specialized functional area which integrates the field of accounting, communication, and administration to successfully manage the flow of information between a private equity firm, its investors, and other stakeholders such as the general partners.