Interval Fund Market: 2017Q3 Update

The interval fund market continues to expand:

Newly Registered Funds

Fund Name

Registration Date

Strategy

Angel Oak Strategic Credit Fund

9/15/2017

Credit

VII Peaks Co-Optivist Income Fund

9/15/2017

Credit

Orinda Preferred Yield Plus Fund

8/18/2017

Credit

Three interval funds filed initial registration statements with the SEC in 2017Q3, compared to 4 funds in 2016Q3. Year to date in 2017, 6 interval funds have registered initial form N-2s with the SEC. Note that VII Peaks Co-Optivist Income Fund is the entity into which VII Peaks Co-Optivist BDC II is converting. It will continue to raise capital as an interval fund going forward. Pathway Energy Infrastructure is also in the process of converting to an interval fund, although it still requires shareholder approval, so it is not included above.

The trend of the interval fund market replacing part of the gap left by the falloff in the non-traded REIT and BDC markets has continued:

The only new NT REIT that registered in 2017Q3 was Strategic Student and Senior Housing Trust. KBS Strategic Opportunity REIT II and Hines Global REIT II both filed S-11s for follow ons, but the data set above includes only new funds, and excludes follow ons.  Note that most of the underlying data can be accessed for free under Tools and Data.

New Funds Declared Effective

Fund Name Effective Date
Investment Strategy
USQ Core Real Estate Fund 9/27/2017 Real Estate
Versus Capital Real Assets Fund LLC 8/17/2017
Infrastructure/Timber/Agriculture

Two interval funds were declared effective by the SEC in 2017Q3, including Versus Capital Real Assets Fund and USQ Core Real Estate Fund.  For comparison purposes, four interval funds were declared effective by the SEC in 2016Q3. Year to date in 2017, 7 new interval funds have been declared effective.  To access and download a complete list, see New Fund Launches

Total Interval Fund Assets

Total interval fund net assets surpassed $17 billion based on the most recent quarterly filings for all active funds. The over active hurricane season will likely hit the assets of insurance linked securities funds, which comprise 28.4% of the total interval fund AUM.  On the other hand, several other newer funds have been raising capital quickly in the wirehouse and RIA channels. To access updated active interval fund market data, click here.