How the liquidity mechanisms of new fund structures work

Private markets are inherently less liquid than public markets, and locking up funds for a significant period is unfamiliar to many private investors. But private asset managers are exploring ways to address this liquidity challenge, including evolving from fixed-term funds to more flexible indefinite-term funds, and introducing open-ended semi-liquid funds as well as offering new regulated structures. Here, Schroders takes a look at semi-liquid funds, LTAFs and more.