Without a listing there is no daily price, so reported values move smoothly. That smoothness is a valuation artefact rather than evidence of lower risk, and it can mask a gap between appraised value and what buyers would actually pay.
Liquidity is the binding constraint. Share repurchase programmes typically cap redemptions at a small percentage of net assets per quarter, and several large vehicles have prorated redemptions when requests exceeded the cap, leaving investors queued for multiple periods.
Selling costs and ongoing fees have historically been high relative to listed alternatives, and early versions of these products drew significant regulatory attention over disclosure of both fees and valuations. Read the redemption plan and the fee table before the distribution rate. See redemption-gate and illiquidity-premium.
Related: reit, redemption-gate, illiquidity-premium, interval-fund, distribution-yield, accredited-investor