In this episode of Zephyr’s Adjusted for Risk, host Ryan Nauman speaks with Joe DaGrosa, CEO and founder of Axxes Capital and co-author of The Financial Advisor’s Guide to Private Investments, about the growing access retail investors have to private markets and the unique risks involved. DaGrosa explains how regulations have historically limited non-qualified purchasers, why registered vehicles are changing that, and what’s driving demand for private equity and private credit, including longevity and the need for higher returns. He argues interval funds can address key drawbacks of traditional drawdown funds by improving fee alignment, transparency, and offering limited liquidity, while emphasizing that advisor education and matching time horizon to illiquidity are critical. The conversation also covers diversification as public markets shrink, the importance of top-quartile manager selection, and how interval funds plan for redemptions.

Zephyr can help financial advisors locate the best interval fund strategy for their clients. Learn more here.

Learn more about Axxes Capital here.

00:00 Welcome and Setup

01:15 Meet Joe DaGrosa

02:49 Why Axxes Capital

06:15 Democratizing Private Markets

08:17 What Drives the Shift

10:46 Illiquidity and Education

13:11 Choosing Access Vehicles

15:13 Interval Funds Explained

19:09 Diversification Case

20:58 Manager Selection Matters

24:45 Who Interval Funds Fit

27:09 Handling Redemptions

28:38 Wrap Up and Resources

Connect with Ryan Nauman:

LinkedIn

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video1889773136: Hello, everyone, and

welcome to Zephyr's Adjusted for Risk

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podcast from the shores of Lake Tahoe.

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I am Ryan Nauman, the market

strategist here at Zephyr.

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Investing in private markets has become

very popular for retail investors as

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the benefits they bring to investment

portfolios are more widely known

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and accessibility has increased.

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But the world of private markets is vast,

complex, and brings its own unique risks.

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Well, I have on an industry expert who

can help us gain a better understanding

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of investing in private markets.

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But first, today's episode is sponsored

by the award-winning Zephyr, which

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helps investment professionals

make more informed investment

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decisions on behalf of their clients.

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All right, enough from me.

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I've already talked enough.

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Let's go ahead and bring

on the star of the show.

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I'd like to give a very warm

welcome Ch- to Joe DeGrossa.

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Joe is the CEO and founder of Access

Capital and co-author of the book

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titled The Financial Advisor's

Guide to Private Investments.

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Joe, thank you so much

for coming on the show.

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It's an honor to have you on.

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Really excited about this conversation.

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You know, can you please tell

us a little bit more about

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yourself and Access Capital?

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Sure.

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Well, first, Ryan, thanks

for having me on the show.

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I appreciate it, and, uh,

I'm very pleased to be here.

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So just in terms of my

background, I've been in the

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capital markets for 40 years now.

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I began, uh…

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In fact, I just hit my

40-year anniversary last week.

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Uh, so I- Wow … started, uh,

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I was a financial advisor there until '96.

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In fact, I started as a stockbroker

and left as a wealth advisor, so

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I saw a fair amount of transition

over those first 10 years.

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Um, I was very fortunate.

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One of the big institutional accounts

I, I wound up covering, a firm called

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Investcorp, um, one of their founders

left to set up a private equity shop.

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Right place, right time.

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He asked me to join him as his first

partner, and, uh, necessitated a move

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from New York to Miami, which I was

all too pleased to do at the time.

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And so I've been in the private equity

business for the fa- past 30 years.

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Done a, a number of interesting

deals, but, uh, probably the most,

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uh, exciting deal I've done is the

launch of a new company, which is,

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which is Access Capital Fantastic.

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So why did you start Access Capital?

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Well, having been on the private equity

side as a sponsor, uh, looking at it

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through a capital raising prism, uh, you

know, over the years, institutions have

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dominated, uh, the capital deployment into

private investments, whether it be private

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equity or private credit or real estate.

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And, uh, however, all that is, you

know, begun to change, and we really

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saw an acceleration of that change

over the past five to 10 years with

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the introduction, uh, of retail

investors into private investments.

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And you know what I like to say, it's,

it's really been a Tale of Two Cities.

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So, you know, for those folks who, you

know, are professionals in, in the space,

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they understand qualified purchasers,

folks with five million or more under the

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Investment Company Act of 1940, they have

unfettered access to private investments,

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whether it's, you know, classic

drawdown private equity or credit funds.

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However, you've got, um, below

that qualified purchaser level,

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um, think accredited investors,

folks one to five million.

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They've largely been disenfranchised

from the private markets because

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of the '40 Act, because the '40 Act

says, you know, if you as a sponsor

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bring in even a single non-qualified

purchaser, someone with below five

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million, you blow the exemption, the

Safe Harbor provision under the '40

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Act, and you're limited to 99 investors.

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So up until recently, there hasn't

been much of a focus on retail

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investors, particularly non-qualified

purchasers who are retail investors.

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But all that's, you know, beginning

to change, and that change is

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accelerating, and it's accelerating

through registered vehicles.

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That's really the only way that, um,

non-qualified purchasers en masse,

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in, in terms of being a large group,

can get into private investments.

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So I, I believe that, uh, those registered

vehicles are gonna be a game changer,

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particularly over the next, uh, call three

to five years Uh, with, uh, reallocation.

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Yeah, Joe, that's fantastic, and

we're gonna talk more about that,

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you know, kind of the merging or

the, of the two, uh, retail investors

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and private markets shortly.

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But you mentioned you have a

40-year journey, through the

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financial services industry.

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I love that you started as a broker and

then went to, more of a wealth planner,

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wealth advisor, so early in your career

because, r- I'd say financial planners,

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wealth managers really became really

popular in the past 10, 15 years.

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So you were ahead of the game, Joe.

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I was, uh…

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I, uh, well, you know, as they

say, better to be lucky than smart.

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I was lucky, not by design,

but, uh, really by being at the

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right place at the right time.

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And I, I was fortunate in, uh, one

of the rock stars in private equity

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took a liking to me and asked me

to join him as his first partner.

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And, uh, so I got to learn the, you

know, corporate acquisition business.

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I was his right-hand guy for

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Uh, left with another partner.

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We bought a bunch of Burger

Kings, sold them to Blackstone.

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Uh, turned around an insurance

company, sold it to GTCR, large

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private equity shop in Chicago.

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Launched a $900 million REIT.

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So I've been fortunate in that, uh, you

know, we've, we managed to be at the right

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place at the right time, uh, a few times.

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And I think, uh, you know, the next,

uh, big thing, uh, from my perspective

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is the, uh, democratization of private

investments for the retail market.

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Yeah, I agree.

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So what has your journey taught

you about private markets,

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alternatives, but, you know, I guess

more specifically private markets?

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Yeah, well, uh, you know, up until,

as I mentioned before, up until very

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recently, it was, uh, really the,

uh, purview of just institutions.

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And, you know, I, I always felt, uh,

having worked with literally a couple

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hundred retail accounts when I was a

broker, uh, that, uh, you know, they were,

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they were really locked out of the market.

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And even when you think about, uh, defined

benefit versus defined contribution

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plans, so think of defined benefit as

those big pension funds for, you know,

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teachers or firemen and policemen,

they had a very healthy allocation to

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private investments, 25, 30%, because

decision-making was centralized with

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a, you know, investment committee.

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But folks who had defined

contribution plans, think 401ks,

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largely locked out of the market.

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And, you know, these are doctors,

lawyers who have a, you know, as good

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a level of sophistication as anyone

else, can … sp- certainly bright

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people who can be, uh, educated on the,

the benefits and, and sometimes, you

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know, cons against private investing.

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But, you know, looking at that market,

we thought it was just a matter of time

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before that market was gonna open up.

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And I think one of the most exciting

things for financial advisors in

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particular, but more importantly the

millions and millions of Americans

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who don't have access to private

investments through their 401ks,

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that market's gonna open up in a big

way, I believe beginning next year.

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So it's exciting times to come.

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Yeah, it is exciting.

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And I'm a big, uh, believer in

the democratization of investing,

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and you are exactly right.

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You know, the, the- Participants

of 401plans, you know, their, their

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offerings are very limited, right?

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So offering them other products that can

help increase the diversification of their

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portfolios is, you know, a huge benefit.

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But what else is driving this shift

from public markets to private markets?

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Is it, is it the retail investor,

financial advisor, or is it more the,

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the asset managers just being like, "Hey,

we see an opportunity in this market.

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Let's, you know, get it to them"?

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Well, I think it, it's a convergence

of a number of constituent

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groups realizing that this makes

all the sense in the world.

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So from an asset manager's point of

view, you know, the, the large, uh,

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private equity and credit shops,

you know, continue to raise capital.

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But, you know, what we call Goldilocks

managers, some great firms, literally

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hundreds of great firms that have very

good track records, they've seen the

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spigot shut off from institutions as

institutions have, have not seen the

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realizations, um, in terms of portfolio

company sales that they've come to expect.

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So the, you know, the guys in the

middle, great firms, great track

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records, great pedigree, great

experience, you know, have seen capital

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flow shut off, and so they naturally

look for other sources of capital.

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From the, um…

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So that's the supply side.

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From the demand side,

you know, a few drivers.

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First of all, people are living longer,

and the average person today, good

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news, is gonna live, you know, three

to four years longer than a person

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at a comparable age 30 years ago.

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That number's only going to, uh, expand.

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So great news, we're

all gonna live longer.

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Bad n- and that's fantastic

news if you're a qualified

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purchaser, five million or more.

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But if you're someone with a million or

two and, and, you know, instead of living

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to be 82, you're gonna be hitting close to

90, you have to think long and hard about

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whether you're gonna outlive your capital.

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And so there's a natural willingness

now to think about that natural

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trade-off with private investments,

uh, to deliver better returns.

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The trade-off is illiquidity.

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We understand that.

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But if you're thinking long term, you

know, illiquidity isn't the issue.

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It's, it's the desire

to get better returns.

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And so I think there's a, an

understanding on the part of financial

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advisors that their, their clients

need these products Yeah, I think

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that's, that's perfect, uh, Joe.

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I think that's a great way of putting

it because, and we're gonna talk

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about it more about illiquidity.

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But it feels if, one thing over the

past six months that it's taught us

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about this so-called issue with private

credit and all the headlines on private

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credit isn't so much the investment

itself, it's the fact that the retail

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investors are demanding liquidity.

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Mm.

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And I don't know if it's, like, a

miscommunication between the asset

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managers and the end investor, but is

there, is there something else people

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are not considering with the merging of

retail investors in private markets?,

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Obviously illiquidity is one,

but is there something else?

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Well, I think illiquidity is, is

probably the number one issue,

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and it's incumbent upon financial

advisors to educate their clients.

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And, you know, I remember when I

was managing people's money, uh, you

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know, for any given investor, there

was the money they needed, you know,

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immediately or in the next six months in

case they lost their job or something.

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Then there's, you know, medium-term money.

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You know, call it money for, you

know, three to five, seven years out.

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And then there's really the long-term

money for kids' education, for retirement.

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That's the pool of money that should

be deployed into private investments.

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And there's another, you know, very simple

strategy that, uh, one can do with these

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registered vehicles that you can't do with

the classic drawdown vehicles, and that

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is dollar-cost average your investments.

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And I think that's, uh, another thing that

more advisors should be talking about.

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When there is a pullback in the

market, that's typically a great

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time to deploy more capital.

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Because one thing I can tell you,

I mean, our, our country's about

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to hit its, uh, 250th anniversary,

uh, on, uh, on July 4th, and we're

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all pretty excited about that.

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And you think about the dozens of

financial crises and dislocations.

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Literally every one of them has

come and gone except for the latest

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one, and this will come and go.

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Um, and we're all gonna be looking

back, and I think a lot of investors

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will look back in five years and kick

themselves for not taking advantage of

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reallocating to private markets Yeah,

I think you're exactly right, Joe.

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I think we will look back

and be like, "You know what?

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That was a good opportunity."

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And it does, I believe,

go back to education.

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I believe private markets,

they're a fantastic investment

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for the right investor.

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At the same time, that same investment

could be a terrible investment

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for the wrong investor, right?

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It's all about making sure they match.

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And we all know it, Joe, making sure, you

know, the, the, the investment matches

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the investment objectives, risk tolerance,

and like you said, liquidity needs.

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So- No question … there's different ways

to gaining access to, to private markets.

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What are the different types of access

vehicles you think financial advisors

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can gain exposure to private markets?

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There's a lot of different ways.

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Before it was, like you said, you

had to be accredited investor.

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Now there's more retail

products out there.

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What are some of the ways that

you're keeping a close eye on?

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Well, you know, first I'll admit

I bring a bias to the discussion

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because I've done a lot of homework

on this and I've concluded that

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interval funds are the best way to go.

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I've, uh, I've been working with drawdown

vehicles as a sponsor for many years.

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And look, one, one of the drawbacks,

uh, in fact, there's multiple

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drawbacks to, uh, you know, the

classic drawdown vehicles, which is,

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one, you're paying management fees

on undeployed capital typically.

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Uh, you have no visibility

into the portfolio.

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It's a blind pool on, on day one.

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Most importantly, the, the liquidity

profile is horrible, and I'm sure a

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lot of investors out there are reading

about secondary funds, and those

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secondary funds have been set up to

take advantage of precisely the problem

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I'm describing, that investors in

classic drawdown vehicles periodically

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need liquidity, and it doesn't exist

but for these secondary vehicles.

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Interval funds eliminate essentially

all three of those issues.

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You're not paying management

fees on undeployed capital.

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Uh, you've got visibility into an

existing portfolio, but in fairness,

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it's a dynamic, not a static portfolio.

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It's gonna change over time.

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But at least on day one you

know what you're investing in.

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But most importantly, while there's

limited liquidity, limited liquidity is

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far better than no liquidity, where if you

have to somehow, uh, generate liquidity,

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you're, you're facing a 10, 15, and

sometimes even higher percentage discount.

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So I think these new interval funds

are the future, not just for retail

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investors, by the way, but really

for institutions that can't negotiate

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better fees with, uh, with sponsors.

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Mm-hmm.

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And, uh, so if you're not in a

position to beat up sponsors, meaning

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you don't have a $250 million check

to write, I believe you're better

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off with these registered vehicles.

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Yeah, very good point.

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Do you think, interval funds, you

know, they get the- Then they're,

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they're ter- semi-liquid funds.

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Do you think they're getting kind of

a bad rap here, or there's too many

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misconceptions about interval funds?

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Because now people are saying,

"We need to change the name.

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They shouldn't be called semi-liquid

because really they're not liquid."

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Do you think that's just kind of some

misconceptions out there, and it's

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just the after effect of people not

understanding that really they are liquid?

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The rules about getting your money out

and, like I said earlier, the mismatch

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between investment and investor.

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Yeah.

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I think that's a very good point.

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First, on the, uh, you know, naming

of them as semi-liquid, that's

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clearly a, a, a misnomer, right?

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Semi implies half, uh, and

they're generally not half liquid.

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Uh, they're, they're, you know,

they're, uh, mostly illiquid, and

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investors need to understand that.

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And so, once again, this gets back

to matching an investor's time

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horizon, investment horizon, with

the assets themselves, and it's

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incumbent upon financial advisors

to clearly communicate that.

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Look, the, the reality is most

financial advisors who have been

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in the business, you know, for some

time, their advisors like them.

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Their…

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Excuse me.

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Their clients like them.

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Their clients trust them, and clients

are counting on them to do right

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by, you know, by those investors.

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And so it's really incumbent upon

financial advisors to determine

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what's appropriate, and I think,

uh, there's, there's probably

282

been some missteps in terms of

misalignment of, of liquidity needs.

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And I'm sure people have their best

interests of their clients at heart,

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but they have to remember there's

dislocations in the market from

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time to time, and they have to be

prepared to have those conversations

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with clients when that does happen.

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Say, "Hey, you know what?

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Let's be a little counterintuitive.

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Let's think about, you know, putting

some more money to work in this space."

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Mm.

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And so, you know, once again, I

get back to the power of dollar

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cost averaging, which served me

extremely well as a financial advisor,

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although it was some time ago.

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Yeah.

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Yeah.

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That's very…

297

Well, it's interesting you

bring up dollar cost averaging.

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It feels as if…

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I, I like it as a strategy,

especially when markets are volatile

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and, you know, maybe we see a

little pullback here and there.

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I wonder, do you often not hear

enough about it, you think,

302

as an investment strategy?

303

Well, you know, it's interesting.

304

With those, once again, those

classic drawdown vehicles, those

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classic private equity funds or

credit funds, you don't really have

306

the ability to dollar cost average.

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Uh, you know, you, you know, a firm

will have a, you know, if you like a

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particular firm and their strategy,

you know, you subscribe to their fund

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and, you know, they're, they're drawing

down capital over time, but you, you

310

have no sense of, uh, or control over

the timing of that capital deployment.

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And once the fund is closed, it's

not like you can up your commitment.

312

So there's just a lot more flexibility,

and I've always been a big believer

313

in, in dollar cost averaging.

314

Yeah.

315

I have too.

316

I have too.

317

So we've talked a little, you

know, limitations of interval

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funds basically being illiquid.

319

Mm-hmm.

320

What are the benefits of interval funds?

321

And, and also, are there any other

limitations other than being illiquid,

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or should I say somewhat illiquid?

323

Well, uh, you know, the, the

limitations or the, the underlying

324

investments themselves are illiquid,

and it varies by strategy, right?

325

So on one extreme you might have venture

capital, which is very illiquid, and

326

then the other extreme, it's, you know,

it's probably a, a credit product where

327

there is a fair measure of liquidity

on, on the underlying investments.

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But when I th- when I think about it,

on, on average, uh, uh, I believe, you

329

know, these, these registered vehicles,

interval funds being my, my registered

330

vehicle of choice, offer far more benefits

than, than, you know, negative points.

331

I think they've got, uh, you know, once

again, matching assets and liabilities.

332

It's a game changer.

333

And, you know, the reality is, just

going back to something we talked about

334

earlier, another big driver in the market

is the fact that, uh, when you think

335

about the average, uh, market value

of a publicly traded company today, I

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mean, it's, it's an order of magnitude

over, over where it was 20 years ago.

337

There's…

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The number of public companies

is, is almost reduced in half,

339

and the big keep getting bigger.

340

I mean, we've, we've seen SpaceX,

uh, you know, $2 trillion market

341

cap and, and growing, I suppose.

342

Uh, NVIDIA, you know, $4 trillion.

343

I mean, it- these numbers

are absolutely staggering.

344

So those, those smaller middle market

companies, they're, they're just

345

not available in the marketplace.

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There's no research coverage for them.

347

So if you want exposure, which

means better diversification in

348

your portfolio, you have to think

about private investments because

349

otherwise you're only getting, you

know, call it large cap investments.

350

Yeah.

351

That's a very good point.

352

Uh, I think it's crazy, Joe, that

we have more ETFs in the space

353

than we have individual equities.

354

It's, it's- And the same thing,

I think we just have f- around

355

4,000 publicly traded companies.

356

Right.

357

It, it- It's unbelievable.

358

It's…

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And it continues to shrink.

360

Yeah.

361

And, uh, it makes it

harder, like you said.

362

You're s- spot on about diversification.

363

When your, your sea of investments

is limited just in the public space,

364

it's hard to get true diversification

there, so it's important to get

365

some, private market exposure there.

366

And interval funds, uh,

interval funds allow that, you

367

just have to understand them.

368

Yep, for sure.

369

You know, I'm big on, you know,

making sure whatever you invest in,

370

that you're getting rewarded for

the amount of risk you're taking on.

371

It doesn't matter what the investment is.

372

It's very important.

373

Do you feel, and you kind of mentioned

it, do you feel clients and investors

374

are being compensated enough for

the illiquidity of private markets?

375

Well, th- this is where

fund selection is key.

376

Uh, so the answer is yes and no.

377

Uh, for certain funds, you're

being very well rewarded,

378

and for others, you are not.

379

Um, and so when you think about, take

private equity, uh, as a, as an asset

380

class, um, so the difference between a

mean performer, an average performer,

381

and I'm talking about the sponsors

themselves, and a top quartile performer,

382

you know, is 5 to 700 basis points.

383

On the venture capital side,

it's 1,000 basis points.

384

So you will be well rewarded for spending,

spending the time to select good quality

385

managers as compared to ETFA versus ETFB

in a short-term government bond fund.

386

I mean, the difference in returns

is probably 20 basis points at best.

387

So it's very, very important to select

correctly when you're talking about

388

private investments, and you're well

rewarded when you select properly.

389

Can you go into more detail

there, J- you know, on the…

390

When we were talking about ETFs or

mutual funds, it's, like, you know,

391

about Sharpe ratio, standard deviation,

risk-adjusted returns, you name it.

392

Are there certain metrics or things

that financial advisors should look for

393

when they're trying to select correctly?

394

Yeah.

395

Some of the classic ratios that are

used in the public markets are a

396

little bit more challenging to apply

when you're talking about private

397

equity or, or even private credit.

398

You know, at the end of the day, uh,

we have a pretty rigid underwriting

399

process at Access Capital because

we do not manage the money.

400

We partner with, we like to say,

great managers, top quartile managers.

401

So we do our homework.

402

We work with third-party firms

to augment and supplement the

403

due diligence we're doing.

404

So we, we really put our

managers through the gauntlet.

405

And for us, it's kind of, kind

of interesting, um, when you

406

think about these managers.

407

You're betting on teams, and you,

you wanna make sure the teams have

408

been around, but also you wanna

make sure they're going to be

409

around for the next 10 or 20 years.

410

'Cause when we partner with a, with

a manager, it's like a marriage.

411

And when an investor invests, you

know, it's, it's like a marriage.

412

You're gonna be tied at the hip for

some time, and therefore, you wanna make

413

sure that the team that generated the

old returns are the same team that will

414

be around to generate future returns.

415

And there's a lot of institutional

knowledge that's embedded in

416

great managers, and that's

what you're paying up for.

417

Look, the reality is you're, you're paying

a premium, um, for, you know, private

418

investments relative to, say, an ETF,

so you wanna get your money's worth.

419

And you get your money's worth when you,

when you identify those top managers.

420

Yeah.

421

That's a good point, and we

often talk here at Zephyr about

422

the, the quantitative side.

423

But that qualitative side of doing a

manager due diligence is so important

424

because, like, especially, like

you said, in the private markets

425

where it is a long-term investment.

426

It's not just a year.

427

You're looking five years, seven years.

428

You've gotta be, r- like you said,

married to that, uh, portfolio manager,

429

that investment manager, because

you will be tied at the hip for a

430

while, so it's a very good point.

431

No, you're, you're ab-

you're absolutely right.

432

And, you know, with, with a mutual

fund, it's almost like dating.

433

If, if you decide-

434

it's not working out, you

cut ties and you move on.

435

You can, you can get liquidity.

436

You know, in private markets,

a little bit different.

437

It's, it is like a marriage.

438

You're, you're, you're…

439

We certainly as a firm

are tied at the hip.

440

But investors, because there's, there

is illiquidity, um, you know, it takes

441

a while to get out, and you got, gotta

make sure that first decision is correct.

442

Yeah.

443

Exactly.

444

Exactly.

445

Great point, Joe.

446

So what type of client is a

good match for interval funds?

447

You know, we've talked a lot.

448

You mentioned some great points

about long-term investing, you

449

know, the risk, uh, you know,

the investment objective there.

450

But is there a certain type of client

that's a good match for interval funds?

451

Because- Anyone can really

get access to them now.

452

They've got a ticker, they're

traded publicly, like, but

453

who are they really good for?

454

Well, I think they're really good

for any investor who's looking

455

at, for long-term returns.

456

And so y- you know, we all know the, the

standard, the S&P delivers 10% compounded

457

annually over the past 100 years.

458

Uh, I'm not sure it's gonna do

that over the next 10 or 20.

459

Uh, Goldman Sachs came out last year

talking about 3% returns compounded

460

annually for the next 10 years.

461

And they, they may be kicking

themselves 'cause the market's been up.

462

But I, I think it strengthens the

view, doesn't weaken the view that

463

the public markets may not deliver

the kind of, you know, long-term

464

returns that we're used to.

465

I always think of, of private

markets needing to deliver a

466

premium to the public markets.

467

The way I think about it is, uh, you know,

on the, on the equity side, particularly

468

private equity, you know, we're looking

for, you know, 2 to 500 basis points,

469

2 to 5% over and above the S&P 500.

470

On the credit side, 100

to 300 basis points.

471

Um, and that's net of all fees.

472

That's, that's not gross.

473

Um, but you think it may not sound

like a lot, particularly on the credit

474

side, but the magic of compounding,

as you know and, you know, you know, a

475

lot of your viewers know, over 20, 30,

40 years, that compounding effect, you

476

know, could mean the difference between

a great quality of life in retirement,

477

and particularly in the later years, or

a not so great quality of life Mm-hmm.

478

Yeah, that's a great point.

479

And regardless of what you think about

the forecasted future returns of, the S&P

480

500, uh, studies show that at elevated

or lofty valuations like we're at now,

481

five-year forward returns, you know,

getting double digit returns is unlikely.

482

But we'll see.

483

Yeah.

484

Who knows?

485

A long, long time.

486

I, I agree.

487

But, and so that again sh- to the point

of diversification is very important.

488

Private markets gives you that

diversification, whether it's

489

through interval funds or whatever

other access vehicle you might like.

490

So there's been a lot of news, Joe,

particularly in private credit.

491

You know, there's been some run on some

of the firms and their products and

492

investors re- demanding their money back.

493

How are you set up to weather the

storm for investors needing liquidity?

494

Well, I think, uh, we're

similar to a lot of other firms.

495

Uh, so the way interval funds work, and,

you know, there's sometimes some confusion

496

out there, what's the difference between

an interval fund and a tender offer fund?

497

You know, one of the core differences,

tender offer funds, uh, promise

498

liquidity, but are not legally

obligated to provide that liquidity.

499

So I'm sure they have the best of

intentions, but when the you know what

500

hits the fan, they may not be equipped

to provide the liquidity needed.

501

Interval funds, you are legally

obligated, you as the sponsor or

502

advisor are legally obligated to

provide, uh, the liquidity that you

503

promised in your filing with the SEC.

504

So that means in our case, we keep a

certain amount of capital in reserve.

505

Um, we, uh, we look to have, uh, unused

lines, lines of credit available for, you

506

know, uh, the proverbial run on the bank.

507

And, you know, what we say is, "It's not a

question of if, it's a question of when."

508

Markets go through cycles, and we're

gonna hit a point where people are

509

hitting the exits, and we wanna make

sure we've got the capital to provide,

510

uh, the liquidity needed to, uh, to

meet that, uh, those redemptions.

511

Yeah, very important.

512

Joe, fantastic conversation.

513

I enjoyed it.

514

Such great insight.

515

Good, and, and a balanced approach

to interval funds, private markets,

516

where yes, it's important, but

you also need to know the risks.

517

You gotta be balanced on it.

518

You can't go- headfirst into it.

519

Um, so- You're absolutely

right … I'd love your take on it.

520

Well, Ryan, thanks very much

for having me on, on your show.

521

I really enjoyed it, and, uh, shout

out to all your, all your viewers.

522

Thank you.

523

It's been an honor.

524

Where can our audience get more

information about Access Capital and

525

your book- Yeah … The Financial

Advisor's Guide to Private Investments?

526

Well, the, the book is

available on Amazon.

527

Uh, but I welcome any of your viewers to

come to our website, accesscapital.com,

528

A-X-X-E-S, uh, capital.com.

529

And, uh, we, we welcome the opportunity

to, uh, to meet some of your viewers.

530

Awesome, Joe.

531

Thank you, and thank you everyone

for listening to this episode of

532

Zephyr's Adjusted for Risk podcast.

533

You can watch all of our other episodes

on the Zephyr YouTube channel and Spotify.

534

Also ple- please be sure to like

and subscribe to those channels

535

and give us a follow on LinkedIn.

536

Thank you very much, and have

a great rest of your week.