Understanding Interval Funds and their structure
September 2026, Alternatives
An interval fund is a closed-end, registered investment company that continuously offers shares at its net asset value (“NAV”) to an unlimited number of investors. As its name suggests, interval funds provide liquidity at certain intervals through periodic repurchase offers at NAV. These periodic repurchase offers are typically done on a quarterly basis and the repurchase offer may range from 5 to 25% of the fund’s outstanding shares. By offering less frequent liquidity, interval funds allow managers to pursue strategies with a longer-term investment horizon and invest in less liquid asset classes such as private credit, private equity, real estate, and infrastructure.
Interval funds were designed to provide retail investors greater access to less liquid assets within a regulated 1940 Act1 framework. Interval funds may offer an additional source of portfolio diversification through their exposure to less liquid assets or private assets, which historically have had low correlations to public markets2 They may also provide an opportunity to seek enhanced returns relative to more liquid investments, along with reduced volatility in certain markets, as private assets are not subject to daily market pricing. Refer to the Key Risks section for important details.
Interval funds offer many of the same features as mutual funds and private vehicles, with some slight differences between each. Below, we summarize key features of mutual funds, interval funds and private vehicles.
| Mutual Fund | Interval Fund | Private vehicles | |
|---|---|---|---|
| Investor suitability | No eligibility requirement | No eligibility requirement | Qualified purchaser3 |
| Offering period | Offered continuously | Offered continuously | Defined lifecycle |
| Pricing model | NAV | NAV | NAV |
| Pricing frequency | Daily | Typically daily4 | Monthly |
| Liquidity | Daily | Periodic, though typically quarterly |
Illiquid, return of capital during harvest period5 |
| Maximum private asset exposure |
15% | No limit, but must have liquidity to cover redemptions |
No limit |
| Leverage | 0.33x | 0.33x | No limit |
| Subject to 40 Act | Yes | Yes | No |
| Tax reporting | Form 1099 | Form 1099 | K-1 |
3 A Qualified Purchaser is defined as (1) any natural person who owns not less than $5,000,000 in investments, (2) any company that owns not less than $5,000,000 in investments and that is owned directly or indirectly by or for 2 or more natural persons who are related as siblings or spouse (including former spouse), or direct lineal descendants by birth or adoption, spouses of such persons, (3) any trust that was not formed for the specific purpose of acquiring the securities offered, or (4) any person acting for its own account or the accounts of another qualified purchaser who in the aggregate owns and invests on a discretionary basis, not less than $25,000,000 in investments.
4 Interval Funds are required to calculate their NAV at least once per week.
5 Harvest period refers to the period of a fund’s life where the focus is on helping the underlying companies grow and on exiting the investments.
An interval fund’s repurchase offer deadline falls between 21 and 42 days from the shareholder notification (commencement) of the redemption period. During this time, shareholders may submit their repurchase requests. Depending on how many outstanding shares are tendered for repurchase by shareholders, shareholders may not receive their full repurchase amount, as a fund generally limits repurchases to 5 to 25% of a fund’s outstanding shares. See below for an outline of an interval fund’s repurchase timeline:
Repurchase timeline:6
6 Source: OHA. For illustrative purposes only.
- Aug 2026
- From the Field
Why investors should prioritize durable growth when the market does not
1 Refers to the Investment Company Act of 1940, as amended.
2 Source: OHA analysis as of June 2026. Past performance is no guarantee or a reliable indicator of future results.
Key Risks and Disclosures:
This document is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities or partnership interests. Any investor who subscribes, or proposes to subscribe, for an investment in a fund or separately managed account must be able to bear the risks involved and must meet relevant suitability requirements. Some or all alternative investments may not be suitable for certain investors. Alternative investments are typically speculative and involve a substantial degree of risk. In addition, the fees and expenses charged may be higher than the fees and expenses of other investment alternatives, which will reduce profits.
Private assets present different risk and return characteristics compared to traditional public securities. Key risks include limited liquidity, valuation uncertainty, and underlying private asset-level exposure.
The use of leverage and other speculative practices may increase the risk of investment loss or make investment performance volatile.
There can be no assurance that an investment advisor will be able to implement its strategy or avoid incurring any losses. Diversification cannot assure a profit or protect against loss in a declining market. Opinions and estimates offered herein constitute the judgment of T. Rowe Price as of the date this document is provided to you (unless otherwise noted) and are subject to change, as are statements about market trends.
T. Rowe Price believes that the information provided herein is reliable; however, it does not warrant its accuracy or completeness.
Important Information
The opinions and commentary provided do not take into account the investment objectives or financial situation of any particular investor or class of investor. Please consider your own circumstances before making an investment decision. All charts and tables are shown for illustrative purposes only.
T. Rowe Price Investment Services, Inc.
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