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The Asset ObserverThe Asset Observer
Home»Investing
Investing

Early redemption fees are the ‘wrong solution’ to semi-liquid fund gatings

News RoomBy News RoomMarch 25, 2024
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Access to private markets has expanded in recent years thanks to semi-liquid or evergreen funds, products designed to appeal to the retail market by resolving some of the friction associated with standard private markets offerings. 
However, at times of volatility semi-liquid funds have had to limit redemptions due to a surge in withdrawal requests, as was the case with the high-profile Blackstone $61bn Real Estate Income Trust in late 2022.
Most semi-liquid funds feature redemption gates, which limit the amount investors are allowed to redeem in a given period so managers do not have…

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