Nasdaq Fund Secondaries, LODAS Markets and Harrison Street Asset Management (HSAM) announced a collaboration in the development of a managed transaction environment designed to provide incremental liquidity dynamics to interval fund investors. The collaboration enables a technology solution intended to address structural liquidity challenges across the semi-liquid fund ecosystem amid growing demand for liquidity within interval fund structures.

Interval funds allow investors to access private markets and other alternative strategies through a regulated investment structure. While these funds offer periodic opportunities for repurchases, investors and financial advisors have limited options when liquidity needs arise outside scheduled repurchase windows. The environment would provide a pathway for a periodic auction process that is designed to provide investors with greater liquidity flexibility and complement the existing interval fund structure.

HSAM, through an affiliated investment advisor, would be the first investment manager to authorize transfers of interval fund interests in an auction conducted through this environment.  Subject to regulatory requirements, such auctions conducted through Nasdaq Fund Secondaries and the alternative trading system operated by its affiliate, NFSTX LLC, would leverage Nasdaq Fund Secondaries’ longstanding experience operating technology for private funds and supporting institutional transaction workflows.  If an auction is conducted, LODAS Markets will act as broker for transactions and provide the technology for trading, clearing and settlement, as well as access to its investor network.

“This collaboration brings together the trust, technology and market expertise required to establish a credible auction environment for interval fund investors,” said Patrick Adrian, VP, Nasdaq Fund Secondaries. “By creating a transparent and purpose-built venue, we aim to give investors and advisors greater flexibility while supporting the continued evolution of the semi-liquid fund ecosystem.”

“LODAS built infrastructure to address the liquidity and transparency issues that have long constrained private markets,” said LODAS Markets Founder and CEO, Brian King. “Now, working with Nasdaq Fund Secondaries and HSAM, we can leverage that infrastructure at scale to deliver additional optionality for investors.”

“HSAM has a long history of developing innovative investment solutions around the evolving needs of our clients,” said Bill Fuhs, Partner, Harrison Street Asset Management. “As the semi-liquid alternatives market continues to develop and mature across cycles, shareholders’ objectives will become more diversified and unique.  This collaboration with Nasdaq and LODAS reflects our client-first approach and our commitment to exploring new ways to provide advisors with greater choice and flexibility to meet their clients’ needs.”

The collaboration creates a scalable foundation that may be leveraged for alternative liquidity options across a broad range of interval funds and other semi-liquid investment vehicles.

Source: Nasdaq Fund Secondaries