Can a private fund holding many illiquid assets be set up as an open-end fund?

Under the 2021 reform, private funds with a high proportion of non-marketable assets for which no market price is available can no longer be set up as open-end funds that allow redemption at any time.

Under the subordinate regulations, a fund must be set up as closed-end if assets without an exchange market price, excluding those readily convertible to cash, exceed 50%. This safeguard is meant to prevent redemption crises caused by mismatches between the fund's maturity and the maturities of its assets.