medium · Private Credit fund-structures-returns-economics
What is the primary difference between an 'Interval Fund' and a 'Tender-Offer Fund' regarding investor liquidity?
- Interval funds are restricted to accredited investors only, whereas tender-offer funds may be marketed to retail
- Interval funds have a mandatory repurchase schedule, while tender-offer funds offer repurchases at the board's discretion
- Interval funds are generally prohibited from employing any fund-level leverage whatsoever to boost returns
- Tender-offer funds are additionally required by regulation to list their outstanding common shares on a public exchange like the NYSE
Sign up free to see the explanation and track your rank →
More Private Credit fund-structures-returns-economics practice
- What is the Dividend Coverage ratio?
- If management achieves a 6.0x Money Multiple (MOIC) on their personal investment, while th
- A BDC (Business Development Company) is required to distribu… — What is the primary benefi
- What is the fund's TVPI (Total Value to Paid-In) multiple?
- An investor is reviewing a fund's performance and sees a DPI… — What does this suggest abo
- What is its current Debt-to-Equity (Leverage) ratio?
- If the fund's net TVPI is only 1.15×, what is the most likely explanation?
- A GP is managing a fund with a 'European' (whole-fund) water… — How much carried interest