The interval fund structure has emerged as one of the fastest-growing vehicles in the registered investment advisor (RIA) channel, with assets reaching $98 billion by year-end 2024, a 31% jump from 2023, according to the latest Cerulli Edge—The Americas Asset and Wealth Management Edition. The structure’s growth trajectory has been impressive, but Cerulli cautions that success has been concentrated among the largest providers, leaving new entrants to compete fiercely on pricing, distribution, and product differentiation. 

Cerulli’s analysis suggests that managers launching interval funds will need to pair competitive pricing with robust wholesaler support and, increasingly, form strategic partnerships to penetrate the advisor market. “Key partnerships quickly can transcend structures and segments,” said Daniil Shapiro, director at Cerulli. “The interval fund structure is a natural avenue to build a partnership base from which they then can expand.” 

Timing product launches to align with investor appetite for specific private capital categories will be critical. Managers are increasingly seeking access to defined contribution channels, where target-date funds and model portfolios will likely require collaboration across multiple alternative managers. This creates opportunities for firms to position interval funds as complementary strategies that advisors can integrate into client portfolios. 

Cerulli highlights the example of Cliffwater, currently the largest interval fund manager, as proof of how an access solution from a trusted provider can quickly gain traction and catalyze continued product development. Looking ahead, Cerulli expects firms to pursue multiple partnership strategies per firm as they build out private wealth and retirement plan distribution capabilities.