XA Investments Reports a Record 300+ Interval / Tender Offer Funds in its Third Quarter 2025 Market Update

Rhea-AI Summary

XA Investments (XFLT) published its Third Quarter 2025 market update reporting a milestone 304 interval and tender offer funds and combined $215 billion in net assets ($252 billion total managed assets) as of Sept 30, 2025. The market now comprises 158 interval funds ($145.9B) and 146 tender offer funds ($105.7B). Q3 saw $19B net-assets growth quarter-over-quarter and 20 new funds launched (70% interval). Q2 net flows were positive at over $13B with 63% of funds reporting inflows. Suitability restrictions are easing: 55% of funds have no investor restrictions and 16 funds removed accredited-only limits since Q2 2025.

Positive

• 304 funds in market as of Oct 16, 2025
• $215B market net assets as of Sept 30, 2025
• Q3 net-assets growth of $19B quarter-over-quarter
• 20 new funds launched in Q3 2025 (70% interval)

Negative

• New funds spent ~7 months in SEC registration
• SEC registration queue fell from 51 to 41 but government shutdown may increase delays
• Top 20 funds still represent 58% of market assets, indicating concentration

Insights

Market structure analyst

Significant market expansion: interval/tender offer fund counts and assets rose, driven by daily-valued interval funds and positive net flows.

The non-listed closed-end fund market now totals $215 billion in net assets and $252 billion in total managed assets as of September 30, 2025, with a milestone of 304 funds in market-wide counts. Growth in Q3 included a $19 billion increase in net assets and over $13 billion of positive net flows for Q2 (reported with lag), highlighting fresh capital entering the sector and stronger demand for daily NAV structures.

Key dependencies and risks include continued SEC registration throughput and the temporary effect of the government shutdown on review timelines and EDGAR access; these factors could delay new launches despite 20 funds entering the market in Q3 and a shorter registration period reported (~seven months on average). Watch the shift in retail accessibility: 55% of funds report no suitability limits and 16 funds have removed accredited-investor requirements since an SEC staff position change in Q2 2025, which supports broader investor inflows over the next six months.

Concrete items to monitor are quarterly net-flow disclosures and registration backlogs: the market-share move to 158 interval funds (now 58% of managed assets at $145.9 billion) versus 146 tender offer funds ($105.7 billion) and the quarterly change in top-20 concentration (fell to 58% in Q3 2025). These metrics will indicate whether the expansion sustains or re-concentrates among large sponsors.

Interval and Tender Offer Fund Market Reaches New Milestones, Sees Interval Fund Dominance and Shift Toward Greater Investor Accessibility

CHICAGO, Oct. 16, 2025 (GLOBE NEWSWIRE) -- XA Investments LLC (“XAI”), an alternative investment management and consulting firm, announced the publication of its latest research report, the XAI Non-Listed Closed-End Fund Third Quarter 2025 Market Update. The report covers interval fund market trends and notes that marketwide fund counts exceed 300 funds, a milestone that shows the dominance of daily valued interval funds due to demand for greater investor accessibility.

“The interval and tender offer fund market reached a major milestone of 304 funds, showing the increased popularity of interval and tender offer funds in recent years,” stated Kimberly Flynn, the president of XAI. “As more assets continue to flow into the interval / tender offer fund market, we believe the market's trajectory will remain positive, with significant opportunities for expansion throughout the rest of the year and in 2026,” she added.

XAI’s market update is a comprehensive research report detailing current market trends and industry highlights. The non-listed closed-end fund (CEF) market includes all interval and tender offer funds. The report highlights new fund sponsors entering the interval fund market and gives a comprehensive market update.

The non-listed CEF market now stands at a combined net assets of $215 billion and $252 billion in total managed assets, inclusive of leverage, as of September 30, 2025. The market includes 158 interval funds which comprise 58% of the total managed assets at $145.9 billion and 146 tender offer funds which comprise the other 42% with $105.7 billion in total managed assets. Market-wide net assets increased $19 billion in Q3 2025 from the prior quarter.

Daily valued interval funds have now overtaken the number of tender offer funds in the market, because of strong investor preference for electronic ticketing. In Q3 2025, 20 new funds entered the market, 70% of which were interval funds. Among the new funds launched in Q3 2025, there were seven new fund sponsors, including Adams Street Partners, Blue Owl, and Coatue.

Alternative investment firms continue to dominate the interval fund market with 69% market share. In total, there are 157 unique fund sponsors in the interval and tender offer fund space, with 57 fund sponsors that have two or more interval and/or tender offer funds currently in the market. Twenty new funds launched this quarter, with the most, 11 funds, launching in the credit category. Newly launched non-listed CEFs spent around seven months in the SEC registration process.

“The number of funds in the SEC registration process decreased by 10 funds from 51 at the end of Q2 2025 to 41 at the end of Q3 2025. This is due to the high number of funds launching and the slowing number of new registrations,” Flynn noted. “With the recent government shutdown, the time spent in the SEC registration process will likely increase, as initial registration statements will not be reviewed and Statements of Effectiveness will not be issued. New funds also cannot secure EDGAR codes and therefore must wait to file with the SEC,” she added.

As the interval fund market expands and diversifies, the market share of the top 20 funds continues to decrease, falling to 58% in Q3 2025 from 59% in Q2 2025. In aggregate, the top 20 largest interval/tender offer funds accounted for 38% of total net flows including many of the market leaders such as the Cliffwater Corporate Lending Fund, Partners Group Private Equity, LLC, and ACAP Strategic Fund.

In the report, XAI covers the Q2 2025 net flows which are lagged by reporting cycles. Interval and tender offer funds had positive net flows, totaling over $13 billion, with 63% of funds reporting positive net flows. Funds with a monthly net asset value (NAV) performed well in Q2 2025, accounting for 49% of net flows, up from 37% in Q1 2025. Daily NAV funds continued to perform well in Q2 2025, also accounting for 49% of net flows.

At 55%, the majority of interval and tender offer funds do not have any suitability restrictions for investors imposed at the fund level with 26% of funds available to accredited investors and 19% only available to qualified clients. Since the change in a SEC staff position in Q2 2025, 16 funds have filed prospectus supplements removing accredited investor requirements. As the accredited investor designation is now largely self-imposed, XAI expects to see the number of funds with accredited investor limitations to decrease and the number of funds with no suitability restrictions to increase.

According to Flynn, “We expect more funds to reduce their suitability requirements in the next six months and for many new funds filed to forgo accredited investor requirements.” Alternative funds without suitability restrictions also prove to be more accessible and have gathered more assets at $147.7 billion in managed assets or 59% of market-wide assets.

For more information on the interval fund market and to read our full quarterly report on non-listed CEFs, please visit the CEF Market research page linked here and click ‘Subscribe’ for access to XA Investments’ online research portal and pricing information. In addition, please contact info@xainvestments.com or 888-903-3358 with questions.

About XA Investments
XA Investments LLC (“XAI”) is a Chicago-based firm founded by XMS Capital Partners in 2016. XAI serves as the investment adviser for two listed closed-end funds and an interval closed-end fund, respectively the XAI Octagon Floating Rate & Alternative Income Trust, the XAI Madison Equity Premium Income Fund, and the Octagon XAI CLO Income Fund. In addition to investment advisory services, the firm also provides investment fund structuring and consulting services focused on registered closed-end funds to meet institutional client needs. XAI offers custom product build and consulting services, including product development and market research, marketing and fund management. XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment strategies and managers. For more information, please visit www.xainvestments.com.

^{Note: Net flows are reported in Form NPORT-P (“NPORTs”), which are filed quarterly with the SEC. NPORT filings are typically lagged 60 days from the end of the reporting period. The net flows data in this report is as of 6/30/2025 and represents the latest publicly available data.}

^{Sources: XA Investments; CEFData.com; SEC Filings.
Notes: All information as of 9/30/2025 unless otherwise noted. Total managed assets is inclusive of leverage. The non-listed CEF market is subject to lags in reporting and limited data availability. Data such as asset levels, net flows, and performance are delayed up to 90 days after quarter-end and are not available for all funds. All data in the report is the most current available. Please contact our team if you have any questions about the non-listed CEF marketplace.}

CONTACT:	Kim Shepherd
	kshepherd@xainvestments.com
	312-623-5123

FAQ

How many interval and tender offer funds did XAI report for Q3 2025 (XFLT)?

XAI reported a total of 304 interval and tender offer funds as of Oct 16, 2025.

What were total net assets for the non-listed CEF market in Q3 2025 (XFLT)?

Total market net assets were $215 billion and total managed assets were $252 billion as of Sept 30, 2025.

How much did market net assets change in Q3 2025 for XFLT?

Market-wide net assets increased by $19 billion in Q3 2025 versus the prior quarter.

How many new funds and sponsors entered the market in Q3 2025 (XFLT)?

Twenty new funds launched in Q3 2025 and seven new fund sponsors entered the market.

What does XAI say about SEC registration timing and potential delays for XFLT-related funds?

New funds spent about seven months in SEC registration and XAI warned the recent government shutdown will likely increase review and filing delays.

How did interval funds perform in net flows in Q2 2025 according to XAI (XFLT)?

Interval and tender offer funds recorded over $13 billion of positive net flows in Q2 2025, with 63% of funds reporting positive flows.