The transaction price is the price at which a non-traded NAV product sells new shares and repurchases existing ones for a given period — generally the most recent monthly NAV per share, published in advance and applied to that month’s subscriptions and redemptions. It is the number that makes a perpetual product function as a market of one.
How transaction prices work
Each month, the product strikes NAV under its valuation procedures, publishes the resulting transaction price (per share class — class-specific fees make per-class NAVs diverge slightly), and processes continuous-offering purchases and redemption program repurchases at it, with any applicable sales load added on purchase and early-repurchase deduction applied on exit. Filings preserve the price history — the closest thing a non-traded product has to a chart. The structural point every user of these products should internalize: both sides of every transaction occur at an administered estimate, not a discovered price. That’s the design (protecting the vehicle from market noise) and the exposure (entering and exiting investors trade at whatever the marks say — a stale-high NAV transfers value from buyers to sellers; stale-low, the reverse). Hence the standing reading list attached to any transaction price: the valuation assumptions and sensitivity disclosure behind it, how it has tracked observable market evidence through repricing cycles, and — when third parties offer to buy shares at other prices, as in mini-tenders — which number better reflects what the assets would actually fetch.
Related terms
NAV · Redemption Program · Continuous Offering · Independent Valuation Advisor · Tender Offer
Educational content only; not investment, tax, or legal advice. Consult qualified professionals regarding your specific circumstances.
