Your Money
What is a repurchase offer, and why am I getting emails or letters asking if I want to take advantage of it? Good question.
At PWM, the primary method we use to invest in public stocks and bonds is Exchange Traded Funds, or ETFs. We often diversify portfolios further, when appropriate, by using non-traditional investments, like private equity and direct lending. Private investments' envious risk/reward profile is well documented; however, the high minimums ($250,000+ each) and long lock-ups (7-10 years) don't make them accessible to many investors.
Enter a new generation of fully funded, evergreen structures to solve that problem: interval funds. Interval funds are evolving to help investors seek exposure to private markets and bypass the most significant drawbacks of the traditional partnership structure. Registered interval funds offer private investments with the following:
- broader accreditation levels
- lower minimums
- immediate allocation
- enhanced liquidity
This last point, enhanced liquidity, drives the repurchase offers you may receive. Interval funds are only traded once per quarter, and investors must receive notifications through a repurchase offer. We get those notices, too, and we know when the trading windows open. We will prepare the paperwork to redeem when we want to redeem.
As always, please reach out to talk about this in more detail.
The potential trade-offs of evergreen fund structures
by Andrew Snyder, Linge Sun, Nicholas Reade
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