SS&C Blog

BLOGS. April 29, 2024

Advisors Choose Interval and Tender Funds for Liquidity Access

Private equity funds have historically been an enticing strategy for investors and institutions that fit the necessary criteria. Private equity funds require an investor lock-up for a fixed amount of time, due to the illiquid nature of the investment strategy. Private equity investments are considered a long-term play, and fund managers need to ensure their investors are sufficiently funded throughout the fund’s lifecycle. From a liquidity perspective, the investments generate cash flow that is distributed among investors, but any significant liquidity event takes place when the fund exits the investment via IPO or a secondary transaction. Interval and tender funds, on the other hand, provide their investors with liquidity in the 5-25% range through a repurchase event at the investor’s discretion.