Interval fund.

In plain English

An interval fund is a registered closed-end fund that offers to repurchase a stated percentage of its shares on a fixed schedule, commonly quarterly. Outside those windows there is generally no way out, because the shares do not trade on an exchange. If shareholders request more than the offer covers, repurchases are prorated and each investor gets only part of what they asked for. That limited liquidity is the point, since the manager can hold private credit, real estate, or other assets that cannot be sold quickly. The investor is trading access to their money for access to those holdings.

01Why it matters

If you need the money between windows, or everyone asks at once, you may not be able to get it out, which is a very different experience from selling a fund share on any Tuesday.

02The math, step by step

Say a fund offers to repurchase 5 percent of shares in a quarter and holders request 12 percent. Each request is filled at roughly 5 divided by 12, about 42 percent. Someone asking for 10,000 dollars receives about 4,200 and waits for the next window for the rest.

Illustrative example. The amounts here are hypothetical, chosen to show how the math works, not real quoted rates or figures.

03What this is NOT

04Receipts

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