Non-Listed Closed-End Funds Reach $279B as Credit Redemptions Climb
Non-listed closed-end funds reached approximately $279 billion in aggregate net asset value in the third quarter of 2026, up 6.7% from the previous quarter, as growth in private equity and venture capital strategies contrasted with mounting redemption pressure on credit funds.
Tender offer fund assets increased 9.7% to $136.6 billion, outpacing interval funds, which grew 3.9% to $142 billion, according to Robert A. Stanger & Co.’s third quarter Closed-End Fund Report.
The categories have distinct investment profiles. Private equity and venture capital account for 52.7% of tender offer fund NAV, while credit strategies represent 59.6% of interval fund NAV.
Through August, credit interval fund redemptions increased nearly 89% from a year earlier to $9.6 billion. Redemptions absorbed 79% of gross sales, compared with 26% a year earlier. Net sales fell 83% to $2.6 billion, while credit tender offer fund net sales declined 15% to $1.8 billion.
“Credit interval funds are showing some of the same liquidity pressures we have tracked in non-listed BDCs,” said Kevin Gannon, Stanger’s chairman and CEO. “Sponsors continue to return substantial capital, but with new fundraising slowing, redemptions are absorbing a much greater share of sales. Unlike NAV BDCs, however, the category remains positive in net sales.”
Among 17 of the 25 largest credit interval funds reporting third-quarter results, sponsors returned approximately $3 billion, equivalent to 4.6% of Stanger’s estimated repurchase offer NAV basis. That compared with 4.8% for the same funds in the second quarter.
Redemption requests declined as a percentage of NAV at six of nine funds disclosing comparable quarterly data and increased at two. Requests nevertheless continued to exceed repurchase capacity at several major funds.
Cliffwater Corporate Lending Fund, the largest interval fund, received requests equal to approximately 16% of NAV, down from 17% in the second quarter, according to reports cited by Stanger. The fund repurchased approximately $1.6 billion within its 5% quarterly cap, leaving an estimated $3.4 billion in requests unmet. It has returned nearly $5.5 billion this year.
Meanwhile, private equity and venture capital generated nearly half of tender offer fund gross sales through August. Those strategies also accounted for six of the 10 best-performing interval funds over the trailing 12 months.
Available holdings data identify SpaceX, OpenAI and Anthropic among investments held by select top performers.
“Capital is following performance into private equity and venture capital,” Gannon said. “The open question is how much of that performance reflects recent enthusiasm around AI and a small number of high-profile technology holdings. Investors should understand what is driving headline returns before chasing them.”