The tender offer fund industry continues to gain momentum, with capital inflows and assets under management rising steadily as retail investors increase exposure to private market strategies, according to new data from Blue Vault.

Year-to-date through October 31, 2025, tender offer funds tracked by Blue Vault raised $20.5 billion in capital, including dividend reinvestment plans. That figure comfortably exceeds fundraising totals of $15.5 billion during the same period in 2024 and $8.9 billion in 2023, highlighting the sector’s rapid expansion over the past two years.

Assets under management have grown just as quickly. As of October 31, tender offer funds reported $100.7 billion in AUM, up from $77.1 billion in 2024 and $57.5 billion in 2023. Blue Vault’s coverage spans 55 active tender offer funds, with the majority focused on private equity strategies, alongside allocations to private credit and private real estate.

Distribution profiles remain a key part of the sector’s appeal. Based on historical data, several funds are delivering double-digit distribution rates. NB Crossroads Private Markets Fund IV Holdings LLC posted a 13.61% historical distribution rate, followed by Eagle Point Institutional Income Fund at 11.60% and Keystone Private Income Fund at 11.58%.

That income comes with important nuances. As of the most recent filings, roughly half of all tender offer funds were fully covering their distributions, reporting GAAP earnings payout ratios of 100% or less. Others have relied more heavily on return of capital. Notably, NB Crossroads Private Markets Fund IV Holdings LLC, despite leading the group in historical distributions, also reported the highest GAAP earnings payout ratio at 475.28%.