Private BDCs / Interval / Evergreen Funds

Examples of Certain Offerings: Blackstone Private Credit Fund (BCRED), Owl Rock Technology Income Fund, Cliffwater Corporate Lending Fund (CCLFX).

Liquidity: Limited, with quarterly redemption programs, often capped at approximately 5% of NAV per quarter.

Valuation: NAV-based, typically using third-party valuation agents.

Access: Targeted toward high-net-worth investors and wealth platforms; minimums generally $25K–$50K.

Fees: Comparable to institutional funds (often 1%+ management and 10–15% incentive), sometimes including additional distribution fees.

Transparency: Moderate, with quarterly reporting but no daily market pricing.

Convexity: Low to moderate; return profile is primarily income-driven, with relatively stable NAV marks.

Downside Protection: Greater apparent stability than public BDCs due to NAV smoothing and limited mark-to-market volatility. However, redemption gates may restrict liquidity during stressed markets.

Pros: Lower observed volatility, steady income, access to large-scale platforms.

Cons: Potential redemption limitations during stress; no opportunity to purchase at a discount to NAV.