JPMorgan wins SEC approval for monthly redemptions on credit fund

JPMorgan Chase just secured something most asset managers only dream about: permission to let investors cash out of a private credit fund every month instead of every quarter.

The SEC granted the bank an exemption from the Investment Company Act of 1940, clearing the way for JPMorgan’s Public & Private Credit Fund to offer monthly share repurchases.

How the fund actually works

The fund will repurchase at least 2% of its outstanding shares each month at net asset value. On a quarterly basis, aggregate repurchases are capped between 5% and 25%.

Most closed-end interval funds offer quarterly redemptions, and even those often struggle to manage the outflows. Redemption requests in the broader private credit fund sector have previously exceeded 5% of NAV.

JPMorgan originally filed its application on March 19, 2026, then amended it on May 6. The bank sought relief under sections 6(c) and 23(c)(3) of the Investment Company Act. A notice published on May 29 indicated that an order would likely be issued unless someone requested a hearing by June 22.

The fund sits alongside another JPMorgan vehicle called the JPMorgan Tax Aware Opportunities Fund, which was also part of the filing.

Why monthly matters more than you think

Private credit funds invest in assets that don’t trade on exchanges — loans to mid-market companies, structured credit, direct lending. The traditional solution has been to match illiquid assets with illiquid fund structures, meaning investors agree to quarterly redemption windows at best.

JPMorgan’s quarterly caps, topping out at 25%, are designed to prevent a scenario where withdrawal demands overwhelm redemption capacity. The monthly 2% floor gives investors regular access to their capital, while the quarterly ceiling gives portfolio managers a buffer against a stampede.

What this means for investors and the private credit market

For institutional investors, monthly redemptions could increase allocation sizes, since the reduced lock-up risk makes it easier for pension funds and endowments to justify larger positions.

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