Interval funds and tender offer funds – closed-end funds registered under the Investment Company Act of 1940 (1940 Act) – are gaining appeal among alternative and private fund managers seeking to access the retail and retirement markets. According to Morningstar, interval fund assets under management have grown almost 40% per year over the past decade through April 2024, and assets in interval funds and tender offer funds exceeded $158 billion in September 2024, according to Interval Fund Tracker. And interval funds and tender offer funds that offer exposure to private credit continue to multiply, providing retail investors access to alternative strategies that can provide diversification from traditional fixed-income and equity investments and potentially higher yields.

This summary outlines structural and operational features of interval funds and tender offer funds, and then discusses potential advantages of these funds and key considerations for managers.