Stress-Testing Semi-Liquid Alternatives

Investor redemptions across real estate-focused interval and tender offer funds are surging, putting these semi-liquid structures to the test. 

The latest data shows a clear trend:

1. So far, interval funds are averaging 5.3% redemptions in Q4 2024, with multiple funds exceeding the 5% quarterly cap to prevent gating investors.

   
   

2. Tender offer funds are no exception—some are seeing redemptions in excess of 8% in recent quarters.

   
   

3. - This isn’t a one-time spike—elevated redemptions have persisted for well over a year, signaling a broader shift in investor sentiment.

With nearly half of these funds managing over $1 billion in retail AUM, this is hardly an isolated issue. 

It seems inevitable that secondaries funds will begin to step in at scale.

Sign up to subscribe to our continuing market insights and to learn more about our best-in-class liquidity solutions.