Interval funds (also known as "Evergreen funds") are a unique type of investment vehicle that offer a blend of characteristics from both mutual funds and closed-end funds. They provide investors with access to alternative assets and illiquid strategies that are typically reserved for high-net-worth individuals and institutional investors.

Interval funds are designed to hold greater allocations of illiquid assets, such as private debt, real estate, and other alternative investments. This allows fund managers to pursue higher returns without having to manage daily redemptions. The periodic repurchase offers are a key feature of interval funds, as they provide investors with the opportunity to exit the fund at specific intervals. However, it is important to note that repurchase requests are done on a pro-rata basis, meaning there is no guarantee that investors can redeem the number of shares they want during a given interval.

An interval fund is a non-traditional type of closed-end mutual fund that periodically offers to buy back a percentage of outstanding shares from shareholders. Unlike traditional closed-end funds, interval funds do not trade on public exchanges. Instead, they offer shares for sale at their net asset value (NAV) on a continuous basis and provide periodic repurchase offers at preset intervals, such as three, six, or twelve months. These repurchase offers allow investors to sell their shares back to the fund at NAV, providing a level of liquidity that is not typically available in traditional closed-end funds.

Interval funds tend to have higher fees compared to mutual funds, due to the complexity and illiquid nature of the assets they hold. These fees can include management fees, performance fees, and other expenses related to the operation of the fund. Closed-end funds can also have higher fees, especially if they invest in illiquid assets and alternative strategies. Purchasing interval funds through an investment advisor like Treeview Capital can help you purchase funds with lower fees than you can purchase on your own.

Interval Funds can be purchased through a brokerage like Charles Schwab using an investment advisor like Treeview Capital. On the brokerage website, Interval Funds can be purchased just like a mutual fund.

The quarterly repurchase offers are a defining feature of interval funds. These offers allow investors to sell their shares back to the fund at net asset value (NAV) at specific intervals. Mutual funds do not have repurchase offers, as they offer daily liquidity. Closed-end funds do not have repurchase offers either, as their shares are traded on secondary markets.

Interval funds have a unique feature that provides periodic liquidity to investors. These funds are required to offer repurchase opportunities at regular intervals, typically quarterly, with a regulated minimum of 5% of the fund's outstanding shares. This means that every quarter, the fund must offer to buy back at least 5% of its shares from investors at the net asset value (NAV). This limited liquidity is due to the illiquid nature of the assets held by interval funds. This can make it difficult for investors to access their capital when needed.

If more repurchase requests are submitted than the 5% minimum, the fund will fulfill these requests on a pro-rata basis. This means that each investor's repurchase request will be partially fulfilled based on the total amount of repurchase requests received. For example, if the fund receives repurchase requests totaling 10% of its outstanding shares, each investor will have their request fulfilled at 50% of the amount they requested. This ensures that all investors have an equal opportunity to redeem their shares, but it also means that investors may not be able to redeem the full amount they desire during a given repurchase period.