Evergreen funds: A compelling tool for private market asset allocation

Both institutional and private wealth investors have increased their allocations to private market assets, seeking to capture the return and diversification benefits these investments can offer. Understanding the principal means of accessing private markets—evergreen funds and traditional drawdown funds—is essential to achieving an investor’s goals. Each structure can provide certain benefits, and we believe a wide range of investors may find that combining the two is the optimal approach. Both types of vehicles can be evaluated based on their return profiles, liquidity, flexibility and operational profiles.