The rapid growth of semi-liquid funds has changed the liquidity considerations for investors, advisors, and asset managers. Over $500 billion sits in registered semi-liquid funds, vehicles that offer investors periodic liquidity while deploying capital into alternative assets such as direct loans, real estate debt, and private equity. At Sekond, we now track 526 semi-liquid funds registered in the United States. The structural tension between illiquid assets and semi-liquid funds has always existed in theory. Today, it is being stress-tested in practice, and redemption data from the largest private credit funds through Q1 2026 makes the tension visible. Several of the market’s largest vehicles have received redemption requests well in excess of their offered repurchase caps, with some funds seeing demand several multiples above the common 5% cap.

Key highlights:

• Redemption demand continued to build. Across 36 private credit funds that file tender offer statements, investors tendered $14.2B against $12.6B in offered repurchases during the quarter.

• The pressure isn’t evenly distributed. A handful of the market’s largest vehicles are absorbing much of the redemption activity, while the majority of funds continue to operate within their limits.

• Even approved redemptions can take time to reach investors. The median time from offer to payment was 40 days, with some payments made through promissory notes, a reminder that liquidity on paper isn’t always liquidity in hand.

• At the same time, liquidity runway improved. Median runway increased to 1.34 years in Q1, supported in part by expanded credit facilities and larger cash positions.

In this environment, funds that can weather sustained redemption pressure may be separated from those that cannot. For investors in these funds as well as their advisors, understanding the tools and levers funds can use to manage liquidity has become increasingly important. This quarter’s State of Liquidity: Semi-Liquid Funds takes a closer look at where that tension stands. We examine the trends within semi-liquid private credit, provide examples of how managers are using the Liquidity Toolbox in practice, and introduce Sekond’s Liquidity Runway Benchmark.

Read the full report, here: Q1 2026 State of Liquidity: Semi-Liquid Funds