Morningstar Inc., a leading provider of independent investment insights, has released a comprehensive report titled "The State of Semiliquid Funds," exploring the evolving landscape of investment vehicles that facilitate entry into private markets. As investor interest in private assets becomes increasingly mainstream, the report offers new data and analysis on semiliquid funds, which include interval funds, tender-offer funds, nontraded business development companies, and nontraded real estate investment trusts. Morningstar's findings reveal a surge in semiliquid fund assets, reaching $344 billion in 2024, a 60% increase from 2022, driven by investors seeking smoother, higher-yield returns. However, the report cautions that these funds come with high fees, extensive use of leverage, and liquidity constraints. To address these complexities, Morningstar is expanding its Medalist Rating framework to include semiliquid funds, with new ratings set to debut in the third quarter of 2025. The report highlights that most semiliquid funds are accessible primarily through financial advisors, with limited direct access for individual investors, and emphasizes the need for careful evaluation of fees and risk exposure.