Interval Fund
Private Credit glossary · Fund Structures, Returns & Economics
Definition
Registered fund periodically offering to repurchase shares at NAV.
Interval Fund in plain English
Most investment funds are either easy to cash out of any day (like a normal stock) or locked up for years (like buying into a private business). An interval fund sits in between: it lets you buy in fairly freely, but you can only cash out during scheduled 'windows' — say, once every three months — when the fund offers to buy back a limited number of shares. The price you get is the NAV, which is just the fund's total assets minus its debts, divided by the number of shares — basically each share's fair slice of what the fund actually owns. This setup lets the fund invest in things that can't be sold instantly, without panicking if everyone wants out at once.
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