Private Credit Doubles Down on Interval Funds for Main Street

Private credit firms are increasingly resorting to interval funds, which offer exposure to assets ranging from real estate to asset-backed lending, to tap into trillions of dollars of wealth held by individual investors.

Blackstone Inc. and Blue Owl Capital Inc. are among managers that are currently setting up such vehicles, marking the next step in their reach for retail capital at a time when institutional fundraising has slowed. Blackstone has pegged the individual wealth market at $80 trillion.

Individuals have traditionally had access to private credit investments through business development companies, which can be publicly traded or non-traded vehicles. But ...