---
title: "Interval Fund | Altss Glossary"
description: "A perpetual fund offering limited periodic liquidity through quarterly or semi-annual redemption windows capped at 5-25% of NAV—providing more liquidity…"
canonical: "https://altss.com/glossary/interval-fund"
---

Fund Structures

# Interval Fund

Publisher: Altss LLCPublished 2026-01-21Content modified 2026-01-21

A perpetual fund offering limited periodic liquidity through quarterly or semi-annual redemption windows capped at 5-25% of NAV—providing more liquidity than closed-end funds but less than daily-traded open-end vehicles.

A liquidity trade-off signal—interval funds offer allocators partial private market liquidity without full lock-up but require tolerance for redemption limits and NAV-based pricing rather than instant access.

**Expanded Definition**

Interval funds are registered investment companies (regulated like mutual funds) that invest in less-liquid assets while offering periodic redemption opportunities. They bridge traditional closed-end private funds and daily-liquid mutual funds.

Interval fund features: **Redemption windows** (quarterly or semi-annual liquidity events), **repurchase caps** (fund repurchases 5-25% of NAV per window—protects remaining LPs from fire sales), **queue system** (if redemption requests exceed cap, pro-rata allocation across requesting LPs), **registration** (SEC-registered under 1940 Act with retail investor access), and **NAV pricing** (redemptions at independently valued NAV, not market pricing). Interval funds democratize access to private credit, real estate, and infrastructure for wealth management channels.

**Signals & Evidence**

Interval fund quality indicators:

- **Redemption fulfillment**: High percentage of requests honored (low queue backlogs)

- **NAV stability**: Conservative valuations avoid step-downs surprising LPs

- **Fee competitiveness**: Management fees comparable to institutional private funds (not inflated for retail)

- **AUM growth**: Net inflows signal LP satisfaction with liquidity/performance balance

- **Portfolio liquidity**: Sufficient liquid holdings to meet redemption caps without distressed sales

**Decision Framework**

- **Liquidity needs**: Does quarterly/semi-annual liquidity with 5-25% caps match LP's cash flow requirements?

- **Queue tolerance**: Can LP accept potential delays if redemption requests exceed repurchase cap?

- **Fee value**: Do interval fund fees justify semi-liquid access vs fully locked private funds?

**Common Misconceptions**

*"Interval funds = liquid alts"* → More liquid than closed-end but not instantly tradable; queues and caps apply. *"All redemptions honored"* → Requests exceeding repurchase cap get pro-rated; full liquidity not guaranteed. *"Retail-only products"* → Institutional allocators use interval funds for semi-liquid private market exposure.

**Key Takeaways**

- Interval funds offer periodic redemptions (quarterly/semi-annual) capped at 5-25% of NAV, bridging locked private funds and liquid mutual funds

- Structure provides allocators with partial liquidity while protecting fund from destabilizing outflows

- LPs evaluate interval funds based on redemption fulfillment rates, NAV discipline, fee competitiveness, and liquidity need fit

## Related terms

[NAV (Net Asset Value)](https://altss.com/glossary/nav)[Fund of Funds (FoF)](https://altss.com/glossary/fund-of-funds-fof)[Evergreen Fund](https://altss.com/glossary/evergreen-fund)[Assets Under Management (AUM)](https://altss.com/glossary/assets-under-management)

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## Canonical URL

https://altss.com/glossary/interval-fund