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ARTICLE · 16 APRIL 2026

Navigating Interval Fund Governance: Key Considerations For Fund Directors

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Private markets and closed-end interval funds have seen significant expansion, with the SEC's Investor Advisory Committee endorsing registered interval funds as an optimal vehicle for retail investors seeking private market exposure.

United StatesFinance and Banking
Paul Stevens Jr.
Paul Stevens Jr.

Private markets have experienced rapid growth, and so have closed-end interval funds. The Securities and Exchange Commission’s Investor Advisory Committee has called registered interval funds an “optimal way for retail investors to access private market assets.”1 Many mutual fund sponsors have begun sponsoring, or are considering sponsoring, interval funds for the first time, and may ask their existing mutual fund directors to sit on boards of such funds.

For independent directors accustomed to overseeing registered open-end mutual funds, the governance landscape shifts when considering registered closed-end interval funds. While interval funds share certain regulatory foundations with traditional mutual funds under the Investment Company Act of 1940 (the 1940 Act), their investment strategies, operational complexities, and liquidity mechanisms require different board oversight approaches. Understanding these distinctions is essential for any director considering service on an

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