Credit interval fund redemptions take a growing share of sales as fundraising slows, Stanger says

Credit interval fund redemptions are taking a growing share of sales as fundraising slows, according to Stanger's Q3 2026 closed-end fund report dated Oct. 15.

"Credit interval funds are showing some of the same liquidity pressures we have tracked in non-listed BDCs," Kevin T. Gannon, Stanger's chairman and chief executive, said in the firm's release accompanying the report. "Sponsors continue to return substantial capital, but with new fundraising slowing, redemptions are absorbing a much greater share of sales."

Gannon added that, unlike NAV BDCs, the credit interval fund category remains positive in net sales. Stanger says private equity and venture capital strategies are leading in both fundraising and performance.

Aggregate net asset value across non-listed closed-end funds reached $279 billion at the end of the third quarter, up 6.7% from the prior quarter. Tender offer funds rose 9.7% to $136.6 billion, and interval funds rose 3.9% to $142.0 billion.

The two wrappers carry different asset mixes. Private equity and venture capital strategies make up 52.7% of tender offer fund NAV; credit-focused strategies are 59.6% of interval fund NAV.

This publication reported Oct. 3 that Stanger's Q3 count covered 98% of nontraded NAV BDCs, with 19 reporting funds paying $5.6 billion to exiting investors against $13.8 billion in redemption requests and $8.2 billion left unmet.

Redemptions absorb a larger share of sales when more money leaves or when less money arrives; Gannon attributes the credit interval fund version to the second. In the BDC cohort, the reporting funds fulfilled about 40% of what investors asked for, and the rest went unmet.

Stanger says the Q3 edition provides the first update to its fund-level redemption data for the 25 largest credit interval funds.