lnterval Funds Market Update

Throughout 2020, the interval funds market remained active with six new funds registered, 11 funds launched, and more than 75 active interval funds. Consistent with the broad sell-off in the markets due to the pandemic, the year-over-year growth rate declined in Q2 2020. We note that despite the decline, interval funds remained an attractive alternative investment vehicle as there were four new fund registrations in Q2 2020. Net assets have since rebounded from the low observed in Q2 2020 to $35.5 billion at the end of Q4 2020, which is above the pre-COVID-19 levels.
Given the liquidity provided to investors via periodic share repurchases, interval funds are generally required to compute NAV at least weekly, with daily NAV determination during the five business days preceding a share repurchase request deadline. Houlihan Lokey has experience valuing a broad range of complex investments across various industries and asset classes and was recognized as “Best Valuation Firm for Hard to Value Assets” in 2020. Our investment banking platform provides unique attributes and real-world market insights that inform our valuations. As a result, we can be a valuable partner to interval funds with hard-to-value illiquid assets.

 

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Contacts

Rittik Chakrabarti Managing Director
Hugh Nelson Director

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