White Paper Summary: Interval Funds – At the Intersection of Liquidity, Transparency, and Valuation

Summary: white paper by DLA Piper

• Interval funds are continuously offered, closed-end products that invest in illiquid assets while providing liquidity through repurchase offers at periodic intervals.

• To form an interval fund, and adviser must secure capital commitments totaling at least $100,000, and file a registration statement with the SEC. SEC rules mandate that each fund must adopt and disclose their investment objectives and strategies to their shareholders.

• Interval funds are generally organized as trusts, with a board of trustees. The investment advisor must be registered under the Investment Advisor Act of 1940 ("40 Act"), and the principal underwriter must be registered with the SEC.

• Interval funds must engage an independent auditor to prepare annual financial statements that must be disclosed to shareholders.

• Although interval funds can invest in all eligible securities, they must be aware of SEC limits into other pooled investment vehicles as, they can invest no more than 15% of assets into other private funds.

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