An important trend discussed at the 2025 Milken Institute Global Conference was the integration of private credit into retail investor portfolios. Assuming certain regulatory challenges can be overcome, this development would expand offering opportunities for retail investors. Speakers highlighted the rapid expansion of the private credit market, which is projected to grow to $2.3 trillion by 2027. This expanding market is expected to increase demand for permanent capital vehicles that offer diversification and liquidity solutions to a broader audience. Interval funds and tender offer funds are two such vehicles. These are registered closed-end funds that are structured to offer shares at net asset value continuously to investors. They may be used in order to invest in less liquid assets, such as private equity or private credit. Also, these vehicles may be designed to align investor liquidity needs and the longer-term investment horizon associated with private credit assets.
Our What’s the Deal article provides a brief introduction regarding these structures, the applicable regulatory framework, and related legal considerations.