More and more investors are discovering the advantages of using unlisted closed end funds to access alternative investments. Regardless of investment strategy, using an unlisted structure allows a manager to focus on long term opportunities, without worrying about short term fluctuations. The additional step required for an investor to exit a fund also helps with emotional management during market volatility ultimately leading to better wealth preservation over many market cycles. Unlisted closed end funds offer the advantages of non-traded alternative products, but also the transparency of regular SEC filings. Closed end funds have additional investor protections under the 1940 Act, just like mutual funds.
Interval Funds, tender offer funds non-traded REITs, and BDCs can all make great additions to investor portfolios. Unlisted closed end funds, including both interval and tender offer, have both been outpacing REITS and BDCS in recent years. The industry saw a surge in interval fund registrations between 2016 and 2019. In 2020, the interval fund space still grew, but tender offer funds proved to be especially popular among sponsors launching new funds. In 2020 there were seventeen new tender offer fund registrations covering a variety of strategies.
The following chart summarizes the registrations of non-traded alternative investment products over the past five years:
(note that this chart counts a master fund with multiple feeder funds as one entity)
Tender Offer Fund Registrations By Category
A variety of strategies can work inside a tender offer fund wrapper. Private equity has proven to be the most popular in recent years. Central Park Group and Neuberger Berman both have families of funds that provide affluent retail investors with private equity access normally reserved for institutions and family offices. Funds of Hedge Funds are another major category. At the end of 2020, Blackrock registered a new tender offer fund that will invest in a portfolio of hedge funds. Aspirant has had success in recent years with hedge fund focused strategies , and they also launched a new product in 2020. Real Estate and Credit are more popular as interval fund strategies, although there are also tender offer funds in the registration pipeline that follow these strategies. The following table includes all tender offer funds that filed registration statements in 2020.
The following chart summarizes 2020 Tender Offer Fund registrations by category:
This table has a full list of tender offer funds that filed registration statements in 2020:
|Fund Name||Date of Registration Statement||Category|
|BlackRock Hedge Fund Guided Portfolio Solution||12/29/2020||Fund of Hedge Funds|
|John Hancock GA Senior Loan Trust||11/19/2020||Credit|
|Aspiriant Risk-Managed Capital Appreciation Fund||11/16/2020||Fund of Hedge Funds|
|Aspirant Risk-Managed Real Asset Fund||11/03/2020||Fund of Hedge Funds|
|CPG Vintage Access Fund IV LLC||09/25/2020||Private Equity|
|OATH Advisors Partner Fund||08/07/2020||Private Equity|
|AIP Private Equity Opportunities Fund IP LP||07/24/2020||Private Equity|
|NB Crossroads Private Market Access Fund LLC||07/17/2020||Private Equity|
|CPG Cooper Square International Equity, LLC||07/17/2020||Fund of Hedge Funds|
|Conversus StepStone Private Markets||07/02/2020||Private Equity|
|BlackRock Private Investments Fund||06/30/2020||Private Equity|
|KKR Real Estate Trust Inc.||05/28/2020||Real Estate|
|BBR Alo Fund||05/01/2020||Fund of Hedge Funds|
|Zell Capital||04/17/2020||Private Equity|
|Delaware Wilshire Private Markets Tender Fund||04/15/2020||Private Equity|
|Hamilton Lane Private Assets Fund||02/14/2020||Private Equity|
Tender Offer Funds provides free, downloadable spreadsheets including all active tender offer funds, and all recently registered funds. For more information on interval funds, check out Interval Fund Tracker.