As the SEC considers potential changes to the interval fund rule, monthly liquidity could become more accessible for investors in these products. Haynes Boone Partner Rich Kerr spoke with Ignites about how increased liquidity could broaden the investor base and what a shift toward monthly repurchase offers could mean for interval fund sponsors and boards.
Read an excerpt below.
Monthly liquidity could also broaden the investor base, said Richard Kerr, a partner at Haynes Boone. Advisors are more likely to use interval funds for clients if they know they can pull capital monthly instead of waiting a quarter.
Monthly repurchases would give boards "more of an upfront role," overseeing whether portfolio management has enough liquidity built in rather than approving each offer, Kerr said.
Read the full article from Ignites here.
