Understanding Secondary Valuations in Evergreen Funds

This report explains why secondary transaction prices in evergreen funds often differ from reported Net Asset Values due to liquidity needs and reporting lags. It emphasizes that these negotiated discounts do not alter the underlying fair value of the fund's assets for other investors.

Key Takeaways

• 1.Secondary transactions in evergreen funds help create mature, diversified portfolios with faster cash flow potential.
• 2.Secondary prices often trade at a discount to reported Net Asset Value (NAV) due to negotiation, liquidity needs, and reporting delays.
• 3.Asset quality and long-term performance are more critical for investors than the specific entry discount of a secondary trade.

Table of Contents

• KEY TAKEAWAYS
• Secondary Pricing and Reported Value May Differ
• What That Means for Fund Value
• The Hamilton Lane Advantage
• DEFINITIONS
• DISCLOSURES