Private markets have traditionally been the preserve of long-term, closed-end fund structures—often seen as illiquid, operationally complex, and slow to deliver returns. One of the key barriers has been the "J-curve" effect, where initial returns are negative as capital is called and invested over time.
Evergreen funds are helping to change this. By calling 100% of capital at the outset and offering exposure to existing portfolios, they allow investors to bypass the early performance drag. Investments such as secondaries—often acquired at discounts—can potentially boost early returns, smoothing the investment journey.
Alongside performance, evergreen structures can also offer additional advantages: no fixed term, periodic liquidity windows, and automatic reinvestment of distributions. This creates a more flexible, accessible route into private equity—without compromising on the benefits of long-term, active management.
Explore how evergreen structures are reshaping private equity access in the Private Markets Watchlist.
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