The Liquidity Paradox of Private Assets and Retail Expectations

Semi-liquid fund structures exist to solve a specific problem. Retail investors want exposure to the outperformance potential of private markets, but they also expect the transparency and periodic access to capital that public market products have trained them to expect. Interval funds, tender offer funds, non-traded BDCs and non-traded REITs were designed to bridge that gap, offering measured liquidity windows alongside illiquid holdings.