Liquidity Without Compromise: Balancing Evergreen Structures

Wealth investors are increasingly adopting evergreen structures to access private markets, requiring a balance between return potential and operational liquidity management. Successful funds rely on globally diversified investor bases to mitigate redemption risks during market stress.

Key Takeaways

• 1.Evergreen structures are acting as a middle ground between daily liquidity and long-term private market investing.
• 2.Public markets are increasingly concentrated; the S&P 500 is roughly 30% weighted in 'Magnificent Seven' stocks.
• 3.Diversified investor bases (global and institutional/wealth mix) reduce the risk of synchronized redemption runs in evergreen funds.

Table of Contents

• Public markets are no longer the whole economy
• Private Markets' broad exposure to global economy
• The problem is not gating itself
• Not all evergreens are created equal
• The institutionalization of wealth alternatives