Archive · 12 Dec 2025
Semi-Liquid Funds Offer Flexible Private Credit Access
Semi-liquid funds are a type of investment that lets rich people and families invest in private loans.
These funds are special because they allow investors to take out their money at regular times, like every few months.
This makes them more flexible than regular private loan funds, which usually lock up money for years.
Semi-liquid funds started in the US in 1992 and have grown a lot, especially since 2018.
They are popular because they offer a way to invest in private loans without waiting too long to get your money back.
These funds also make it easier for financial advisors because they don't have to check everything over and over again.
Overall, semi-liquid funds are a good option for people who want to invest in private loans but also want some flexibility.
Semi-liquid funds provide access to private credit markets with periodic redemptions, addressing reinvestment risks and capital lock-in periods.
Targeted at high-net-worth individuals, ultra-high-net-worth individuals, and family offices, these funds offer flexibility and liquidity.
Redemptions are typically capped at 5-10% of AUM and occur quarterly, with investors able to request redemptions 15-30 days prior.
Semi-liquid funds have gained significant traction globally, with interval funds in the US managing ~US$1 trillion in assets, 66% of which are in credit strategies.
These funds offer operational ease and relieve wealth advisors from repeated due diligence, making them an attractive alternative to traditional private credit funds.
- Who
- High-net-worth individuals, ultra-high-net-worth individuals, family offices
- What
- Semi-liquid funds offering access to private credit markets with periodic redemptions
- When
- Concept originated in 1992, growing popularity since 2018
- Where
- Globally, with significant presence in the US
- Why
- To provide flexibility and liquidity in private credit investments, addressing reinvestment risks and capital lock-in periods
- Investment Vehicle
- Semi-liquid funds
- Target Investors
- HNIs, UHNIs, family offices
- Liquidity
- Periodic redemptions, typically quarterly
- Redemption Cap
- 5-10% of AUM
- Global AUM
- ~US$1 trillion (interval funds)
- Credit AUM in US
- 66% of interval funds
- Returns Comparison
- Net returns comparable to private credit funds
- Capital Commitment
- Single tranche