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If you're a fund manager exploring ways to raise capital from retail investors, you've probably familiar with the interval fund structure. Unlike traditional private fund structures, designed mostly for institutions and accredited investors, interval funds are built with the individual investor in mind.
But what exactly makes them investor-friendly?
At Sweater, we work with fund managers to launch interval funds that are both compliant and compelling. Here's why this fund structure resonates with today’s investors and what it means for how you build and manage your fund.
Designed for Accessibility
Most traditional private funds require high minimums, long lockups, and accredited investor status. That leaves the majority of investors locked out of the private markets altogether.
Interval funds change that. They’re registered with the SEC under the Investment Company Act of 1940 and can accept investments from both accredited and non-accredited investors, making them one of the most inclusive private market vehicles available.
Why this matters:
Traditional private funds often come with 7–10 year lockups. Interval funds, by contrast, offer periodic liquidity, usually quarterly or biannually, through structured redemption windows.
This gives investors some access to their capital while still supporting the long-term nature of private market investments. The redemption process is disclosed upfront and managed through the fund’s prospectus, giving investors clear expectations.
Liquidity with limits is designed to give investors clearer expectations and may help support confidence in the structure.
Investors in interval funds buy and redeem shares based on Net Asset Value (NAV). Unlike venture or private equity funds that may only report performance annually, interval funds calculate NAV regularly, typically monthly or quarterly.
This helps:
NAV reporting brings private investing closer to the real-time visibility retail investors are used to in public markets but still provides access to longer-horizon, alternative strategies.
Modern Investor Experience
Sweater was built for today’s retail investor expectations: platform access, clear communication, and a relationship that extends beyond quarterly updates.
We help fund managers deliver a professional, modern experience that includes:
Whether your investors are accredited or unaccredited, they want simplicity and clarity when investing outside of public markets.
Build a Fund Retail Investors Actually Want
Interval funds are purpose-built for a new generation of investors who want access to alternative assets, but with transparency, guardrails, and a clear exit path.
At Sweater, we help fund managers design investor-friendly funds from the ground up so your back office, compliance, and communication scale right alongside your AUM.
Sweater gives you the tech, tools, and strategic support to launch a compliant interval fund that meets investors where they are.
Schedule a call to explore the platform.
The information contained in this post is provided for informational and educational purposes only and should not be construed as investment, legal, or tax advice. The content does not constitute an offer to sell, or a solicitation of an offer to buy, any securities or investment products.
