The non-listed closed-end fund (CEF) market, which includes interval and tender offer funds, has started 2025 on a high note. The market update released by XA Investments LLC shows a significant increase in fund launches and asset gathering, with a total of 14 new funds entering the market in the first quarter of 2025.

According to Kimberly Flynn, the president of XAI, the non-listed CEF market continues to grow after a record year in 2024. “The non-listed CEF market is a great place for investors to find alternative investment opportunities, with many sponsors launching a second fund and new sponsors entering the market,” she said. “We believe the market’s trajectory will remain positive, with significant opportunities for expansion throughout the rest of the year.”
One of the key initiatives of XAI is the launch of its XAI Interval Fund Index™ (INTVL), a total return index that tracks the interval fund market. The index provides a comprehensive view of the market, helping investors to make informed decisions. “The XAI Interval Fund Index gives asset managers and financial advisors an unprecedented level of clarity in a market that has been notoriously difficult to track,” said Flynn. “The first index tracking the interval and tender offer fund market, INTVL serves as the sole barometer for the market, giving investors a snapshot of how interval funds as a whole are performing.”
The non-listed CEF market has reached a new peak, with a total of 270 interval and tender offer funds with $181 billion in net assets and $220 billion in total managed assets as of March 31, 2025. The market includes 134 interval funds, which comprise 50% of the total managed assets, and 136 tender offer funds, which comprise the other 50%. The number of interval funds has caught up to the total number of tender funds, a significant change from previous quarters.

1. Market-wide net assets increased by $9 billion in Q1 2025 from the prior quarter.
2. 14 new funds entered the market in Q1 2025, representing an increase of four funds compared to the 10 funds launched in Q1 2024.
3. There are 143 unique fund sponsors in the interval and tender offer fund space, with 50 fund sponsors that have two or more interval and/or tender offer funds currently in the market.
4. The top 20 funds decreased their market share from 65% Q4 2024 to 60% in Q1 2025, displaying the growth of new funds in the market.

In total, there are 27 funds currently in the Securities and Exchange Commission (SEC) registration process from fund sponsors looking to launch another fund. Notably, the top 20 funds have decreased their market share, while the new funds launched in Q1 2025 have increased the market share. Among the new funds launched in Q1 2025, there were three new interval fund sponsors, HarbourVest, Gemcorp, and Pop Venture Advisers. The non-listed CEF market has also seen significant growth in asset gathering, with a total of over $38 billion in net flows in 2024. The majority of net flows went into daily NAV funds without suitability restrictions, while 26% went into funds limited to accredited investors, and 21% went into funds limited to qualified clients. In aggregate, the top 20 largest interval/tender offer funds experienced an increase in net flows year-over-year from 2023 to 2024.

“The non-listed CEF market continues to grow with a total of 58 funds in the SEC registration process at the end of the first quarter,” said Kimberly Flynn. “The SEC backlog increased by five funds from the end of 2024 to the end of Q1 2025. So far in 2025, there have been 23 new SEC filings, compared to 15 new filings from Q1 2024, representing a 53% increase in registrations. Newly launched non-listed CEFs spent around seven months in the SEC registration process, with the fund’s asset class continuing to be the main driver of time spent in the SEC review process. Tax-Free Bond funds were the quickest to launch, at 160 days on average spent in registration,” she added.

The majority of interval and tender offer funds do not have any suitability restrictions for investors imposed at the fund level, with 49% of funds available to all investors, 30% available to accredited investors, and 21% available to qualified clients. Alternative funds without suitability restrictions have gathered more assets at $118.2 billion in managed assets, which represents 54% of market-wide assets. For more information on the interval fund market and to read XAI’s full quarterly report on non-listed CEFs, please visit the CEF Market research page linked here. Investors can also contact XA Investments at [email protected] or 888-903-3358 with questions. About XA Investments
XA Investments LLC is a leading alternative investment management and consulting firm. The company provides research, analysis, and consulting services to the non-listed closed-end fund market. With a focus on interval and tender offer funds, XAI helps investors make informed decisions and provides access to its online research portal and pricing information.