Harrison Street Opens Second Interval-Fund Liquidity Auction

Harrison Street Private Wealth, LODAS Markets and Nasdaq Fund Secondaries have opened a second auction designed to give interval-fund investors an additional route to liquidity between scheduled fund repurchase windows.

The new auction, which opened Oct. 2 and is scheduled to close Oct. 23, covers shares of the approximately $2 billion Harrison Street Real Assets Fund (VCRRX). The fund invests in private infrastructure, farmland, timberland and publicly traded real assets through private funds and institutional managers.

It follows the Sept. 23 completion of an inaugural auction for the Harrison Street Real Estate Fund, VCMIX. In that three-week auction, 91% of shares offered by sellers were purchased by unaffiliated secondary buyers. The firms said 99% of shares offered at or below the clearing price sold at the seller’s requested price or better, while 41% of shares sold received price improvement.

The auction process lets buyers and sellers submit orders at preset discounts to net asset value. All completed trades settle at a single clearing price, with ownership transferring directly from the selling shareholder to the buyer. The model differs from a fund repurchase: Harrison Street does not need to sell portfolio assets or use fund-level cash to complete the transaction.

“Investors can have varying investment horizons,” Harrison Street Private Wealth CEO Mark Quam said. He said the auction provides an additional voluntary liquidity option while preserving capital for long-term shareholders.

LODAS Markets acts as broker and supplies the trading, clearing and settlement infrastructure. Nasdaq Fund Secondaries provides the auction venue through its affiliate’s alternative trading system. Harrison Street was the first investment manager to authorize transfers of interval fund shares through the arrangement, the firms said.