JPMorgan Chase just secured something most asset managers only dream about: permission to let investors cash out of a private credit fund every month instead of every quarter.
The SEC granted the bank an exemption from the Investment Company Act of 1940, clearing the way for JPMorgan’s Public & Private Credit Fund to offer monthly share repurchases.
How the fund actually works
The fund will repurchase at least 2% of its outstanding shares each month at net asset value. On a quarterly basis, aggregate repurchases are capped between 5% and 25%.
Most closed-end interval funds offer quarterly redemptions, and even those often struggle to manage the outflows. Redemption requests in the broader private credit fund sector have previously exceeded 5% of NAV.
