b'01Key Features After the IPO, shares trade on an exchange or over the counter,not directly with the fund. The fund has a fixed number of shares outstanding; investors tradeamong themselves. Shares can trade at a premium or a discount to the funds net assetvalue (NAV). Because the fund does not need to redeem daily, managersare free to invest in illiquid assets. Closed-end funds can use leverage more aggressively thanmutual funds, increasing both potential returns and risks.Closed-end funds are increasingly relevant Types of Closed-End Fundsbecause they allow managers to deploy capital into less liquid, higher-yielding assets like privateInterval fundscredit, real estate, and complex debt instruments.Predictable with periodic liquidity windows.They provide investors with exposure toTender offer fundsstrategies not always accessible in mutual funds,Flexible, with manager-controlled liquidity.while giving managers stable capital and freedom from daily redemption pressures. Business Development Companies (BDCs) Invest directly in U.S. middle-market companies.Many managers employ multiple closed-end fund structures to address the needs of different investors (retail vs. institutional), offer different levels of liquidity, and align fund structures with specific asset strategies.Mayer Brown|Closed-End Funds 8'