What is a semi-liquid fund?

Semi-liquid funds have opened private markets to a wider range of investors, much like ETFs did for public equities. They offer access to real estate, private equity, and private credit with lower minimums and periodic liquidity, which has helped drive strong asset growth across evergreen structures.

The appeal is clear because investors can enter a built portfolio right away and avoid the long ramp-up of traditional drawdown funds. Still, recent stress in private credit shows that redemption rights can be limited when markets turn volatile.

For advisors and investors, the key opportunity is broader access to alternatives with potential return benefits. The main risk is liquidity mismatch, since withdrawals may be delayed or gated during periods of pressure. These vehicles can fit well in long-term portfolios, but position sizing should reflect that “semi-liquid” does not mean fully liquid.