Fred Alger Management Registers First Interval Fund With SEC

Fred Alger Management LLC, a New York-based investment advisory firm with $20 billion in assets under management as of March 2025, has filed initial registration with the U.S. Securities and Exchange Commission for a perpetual interval fund focused on private equity and venture capital opportunities and seeking long-term capital growth.

Alger Next Gen Growth Fund filed its Form N-2 on Sept. 24, signaling its intent to launch, though the fund is not yet effective and cannot currently accept investments.

The fund, structured as an interval fund to offer periodic liquidity, will be advised by Fred Alger Management, which is a subsidiary of Alger Group. If declared effective, it will be the first interval/tender offer fund for Fred Alger Management.

The interval fund aims to invest primarily in what it calls “next gen growth companies,” defined as companies that are developing or benefitting from new products, services, technologies, or advancements. Thes are companies that are realizing high unit volume growth, or positive lifecycle change. High unit volume growth companies might be described as traditional growth companies experiencing rapidly growing demand or market dominance. The company describes positive lifecycle change companies as those benefitting from new regulations, new product innovation, or new management.

The company intends to invest at least 80% of its net assets, plus any borrowings for investment purposes, in growth companies, or companies that have “above average growth potential,” looking at such factors as: whether the company is included in a third-party growth benchmark or classified as a growth company by a third-party vendor; if the company’s projected earnings per share growth, sales growth per share or free cash flow growth or its trailing earnings per share growth is above the equity market median; if the company’s research and development expenses exceed sales; general and administrative expenses; or if the company is raising capital to grow, fund, or expand its business.

In addition to making direct investments in the equity and/or debt of private companies, including investments alongside private equity firms, the fund may gain access to assets in the Private Sleeve through either secondary purchases of interests in private equity and other private asset funds managed by unaffiliated asset managers, i.e., portfolio funds, including through privately negotiated transactions, from investors in a portfolio fund or directly from the portfolio fund, i.e., secondary investments; or primary investments in portfolio funds, i.e., primary Investments. The fund expects to invest principally in secondary investments and, to a lesser degree, in primary investments, although it said the allocation among those types of investments may vary from time to time. The fund may also invest in bonds and fixed income securities of various types, and convertible securities issued by U.S. and foreign companies.

The fund’s net asset value frequency will be daily, and it is offering two share classes: Class Z and Class A. The minimum investment is $500,000 for Class Z; and $1,000, $500, or $250 for Class A (dependent on account type).

The fund will offer quarterly repurchases from 5% to 25% and be sold without suitability restrictions.

The fund’s management fee, as a percent of net assets, as well as its acquired fund fees and expenses have yet to be disclosed. Fund documentation, however, has indicated that it will not have income incentive or performance fees.

The distributor will be Fred Alger & Company LLC, and fund counsel will be provided by Kirkland & Ellis LLP. The fund administration provider has yet to be named.

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