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Morningstar Publishes New Semiliquid Funds Report Amid Acceleration of Private Market Access and Investor Interest
CHICAGO--(BUSINESS WIRE)-- Morningstar, Inc., (Nasdaq: MORN), a leading provider of independent investment insights, today published a report, "The State of
About this update from Morningstar, Inc.
[{"type":"text","content":" CHICAGO--(BUSINESS WIRE)--\nMorningstar, Inc., (Nasdaq: MORN), a leading provider of independent investment insights, today published a report, \"The State of Semiliquid Funds,\" offering a comprehensive examination of the investment vehicles that have emerged as a key entry point to private markets. As investor access and demand for private asset exposure become more mainstream, Morningstar’s research team delivers new data and analysis to a growing but complex space. Morningstar will also begin assigning qualitative, forward-looking Medalist Ratings to semiliquid funds next quarter.\n\n\n\"Semiliquid funds have quickly become one of the most talked-about corners of the investment universe, yet definitions, data, and transparency have lagged behind the headlines,\" said Jason Kephart, senior principal, multi-asset strategy ratings. \"Our report shows that while these funds promise greater access and returns, they also bring steep fees, heavy use of leverage, and liquidity limits that investors must carefully evaluate.\"\n\n\nThe report focuses on semiliquid funds accessible to investors with less than $5 million in investable assets. It covers interval funds, tender-offer funds, nontraded business development companies (BDCs), and nontraded real estate investment trusts (REITs).\n\n\nKey findings include:\n\n\nAssets, Flows, and Competitive Landscape\n\n\n\nSemiliquid fund assets grew to $344 billion in 2024, up 60% from $215 billion in 2022, as investors seek smoother, higher yield returns from private markets.\n\n\n\nCredit overtook real estate/infrastructure as the largest semiliquid broad asset class with $188 billion in net assets at the end of 2024, up from $75 billion in 2022. Nontraded BDCs lead the charge in private credit.\n\n\n\nInterval funds are the preferred vehicle for new product development due to their operational ease for brokerage and wealth platforms. Nineteen interval funds launched in 2025 through May, on pace to exceed the 2024 record of 27 launches.\n\n\n\nInvestor Access\n\n\n\nMost semiliquid funds are only available through financial advisors with limited direct access. Several prominent retail brokerages don’t allow individual purchases of interval funds.\n\n\n\nEligibility varies widely across funds and platforms with some restricting access to accredited or qualified clients even when regulatory ...