The structures behind semiliquid alternatives.

BDCs, interval funds, tender-offer funds, and REITs are the wrappers the whole asset class is built on. Plain-English guides to how each one works, how they differ, and what to check before allocating.

What is a BDC? — A business development company (BDC) is a type of closed-end investment company, created by the US Congress in 1980, that invests primarily in the debt and equity of small and mid-sized private American companies. Most BDCs pay out at least 90 percent of their taxable income to shareholders, which is why they are best known as income vehicles.
What is an interval fund? — An interval fund is a closed-end fund, registered under the Investment Company Act of 1940, that continuously offers its shares at net asset value and commits in advance to repurchase a set percentage of shares, most commonly 5 percent, at fixed intervals, most commonly quarterly. The structure lets a fund hold illiquid assets while still giving investors a scheduled way out.
What is a tender-offer fund? — A tender-offer fund is a closed-end fund, registered under the Investment Company Act of 1940, that provides liquidity through periodic tender offers made at its board’s discretion. Unlike an interval fund, it is not bound to a fixed repurchase schedule: each buyback is a decision, not an obligation.
What is a REIT? — A real estate investment trust (REIT) is a company that owns, operates, or finances income-producing real estate and distributes at least 90 percent of its taxable income to shareholders as dividends. Created by Congress in 1960, the structure lets any investor hold a share of large-scale commercial property the way they would hold a stock.

The four structures at a glance

	Interval fund	Tender-offer fund	Non-traded BDC	Non-traded REIT
Legal basis	1940 Act closed-end fund, Rule 23c-3	1940 Act closed-end fund, board-approved tenders	1940 Act BDC election, RIC taxation	Company electing REIT tax status, SEC-registered offering
Typical assets	Private credit, real assets, multi-strategy	Private equity, secondaries, venture	Loans to private US mid-market companies	Commercial property and real estate debt
How you buy	Continuously at NAV, often daily	Continuously at NAV	Continuously at NAV	Continuously at monthly NAV
How you exit	Mandatory repurchase offers, typically 5% quarterly	Tender offers at board discretion, often ~5% quarterly	Repurchase plan, typically up to 5% quarterly	Repurchase plan, commonly ~2% monthly / 5% quarterly
Exit certainty	Obligated by fundamental policy	Discretionary, board decides each offer	Discretionary, board can cap or suspend	Discretionary, board can amend or suspend

Educational content, not investment advice. Specific terms vary by fund. See also: the public fund directory · feeder platforms vs a neutral data layer.