The Meb Faber Show - Better Investing Kim Flynn - Unlocking Alternative Investments | #585
Jun 6, 2025
Kim Flynn, President of XA Investments, discusses the booming world of alternative investments. She dives into the rise of interval funds and their benefits for retail investors, highlighting the challenges and innovations within this space. Flynn shares insights on farmland investments and the potential of private credit and venture capital. With a focus on best practices for advisors, she emphasizes the importance of transparency and education for navigating these complex products. Her forward-looking perspective anticipates significant growth in alternative investments by 2030.
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Interval Funds Explained
- Interval funds are continuously offered non-listed closed-end funds mainly holding illiquid assets like private equity and infrastructure.
- They provide some liquidity with quarterly redemption windows limited to 5% of net assets, balancing access and illiquidity.
Difference Between Interval and Closed-end Funds
- Listed closed-end funds have both market prices and NAVs, often trading at discounts or premiums.
- Interval funds only have NAV prices, so they don't trade at discounts and offer liquidity at NAV with limited redemption terms.
Why Listed Closed-End Funds Persist
- Listed closed-end funds offer permanent capital and liquidity but often trade at discounts.
- ETFs have limited new listed closed-end fund IPOs due to competition, while interval funds gain popularity for illiquid assets.
