Cox Capital Partners Seeks to Address Critical Interval Fund Disclosure Gap With New Data Resource to Help Advisors and Their Clients Assess Liquidity Risks

The Interval Fund Transparency Project seeks to bring greater transparency on interval fund repurchase programs and build the first record of interval fund repurchase requests using data from fund filings and shareholders themselves.

CONSHOHOCKEN, Pa.--(BUSINESS WIRE)--Cox Capital Partners (“Cox Capital”), a leader in liquidity solutions for retail private markets investors, announced the launch of the Interval Fund Transparency Project, the first-of-its-kind repository of data tracking redemption demand and share repurchase activity among interval funds.

Unlike non-traded business development companies, which are required to periodically report on shareholder redemption demand and repurchases, interval funds are not subject to the same disclosure requirements. While they report the shares they repurchased, in their shareholder reports and monthly filings, disclosure of total requests is entirely voluntary. Accordingly, the extent to which repurchase programs are oversubscribed is not universally available. Understanding a fund’s history of meeting repurchase requests, whether unmet requests are building up, and how new subscriptions compare with the shares being redeemed is critical for advisors to assess whether a fund’s liquidity profile aligns with their clients’ needs.

“Interval funds are among the most popular vehicles for expanding retail access to private markets,” said John Cox, Founder and CIO of Cox Capital Partners. “Without this information it is hard for advisors, and for fiduciaries especially, to make recommendations on a fully informed basis, which may not be in their clients’ best interests.”

“For private markets to meaningfully expand into the advisor channel, we believe transparency needs to keep pace with access,” Cox added. “Advisors, who are accustomed to the breadth of disclosures required among their public-market investments, need a clear basis for evaluating private market funds in a similar fashion. That includes being able to assess the liquidity risks associated with the funds they recommend to their clients.”

“This project is an effort to make that information broadly accessible, and we are asking investors and advisors to help build it,” Cox said.

An Invitation to Help Build the Record

The Interval Fund Transparency Project will bring together repurchase histories in a central resource, drawing on public filings, sponsor confirmations, and shareholder-provided repurchase confirmations reviewed by Cox Capital. Fund sponsors, shareholders and financial advisors are invited to contribute information to help build a more complete record.

To advance the Project’s goal, Cox Capital developed a repository of interval fund repurchase data using publicly available information. Cox Capital has provided certain fund sponsors with previews of their funds’ data in the repository, highlighting available information along with the known gaps, and inviting them to confirm or supplement the record. Shareholders and financial advisors will be asked to help fill in the remaining gaps by submitting repurchase confirmations showing the shares requested. Cox Capital will review submissions, use them to determine repurchase request “fill rates”-- the percentage of shares submitted for repurchase that a fund accepted during a given repurchase window – and incorporate the results into the repository. Users can also flag potential corrections through the site. Contributors receive the compiled repurchase history for their fund by email, and the most active contributors receive the full data set.

Understanding Liquidity Risks and Options

The project’s central measure will be the repurchase request fill rate. A 25% fill rate, for example, means the fund repurchased one-quarter of the shares shareholders requested to sell. The site will include fund-by-fund tables, comparison charts, and individual fund pages with source information and explanations of how figures are calculated. Users will also be able to review fund flows and redemption activity.

The project distinguishes disclosed and calculated results from unavailable information. Missing data does not represent a zero fill rate. Aggregate figures reflect available data for each period, and the funds represented may change as additional information becomes available. Historical repurchase results do not guarantee the outcome of future requests.

The Interval Fund Transparency Project is available at coxcapitalportal.com/transparency.

About Cox Capital Partners

Cox Capital Partners is a Conshohocken, Pennsylvania-based private investment firm focused on secondary-liquidity solutions for holders of non-traded and other illiquid alternative investments. Information about Cox Capital’s tender offers is available through CoxCapitalPortal.com. Additional information about the firm is available at coxcp.com.

Important Information

The Interval Fund Transparency Project (the “Project”) is provided for general informational purposes only. Information in the Project is drawn from public filings, fund sponsors, shareholders, financial advisors and other third-party sources. Cox Capital has not independently verified all of this information and does not guarantee its accuracy, completeness or timeliness. Information submitted by contributors may contain errors or omissions, and Cox Capital is not responsible for information provided by third parties. Information in the Project is provided “as is” and may be revised, supplemented or removed at any time without notice, and Cox Capital undertakes no obligation to update it.

Nothing in this press release or the Project constitutes investment, legal, tax or accounting advice, or a recommendation regarding any fund, security or investment strategy. Historical repurchase results, fill rates and other data do not predict or guarantee future results. Investors should consult their own financial advisors and review each fund’s prospectus and other offering documents before making any investment decision. The inclusion of any fund in the Project does not imply any endorsement or criticism of that fund or its sponsor, and fund sponsors have not endorsed the Project.