Evergreen funds are becoming a key structure in private markets, particularly for the wealth channel. Unlike traditional drawdown funds, which rely on capital calls, long lockups, and J-curve effects, evergreen funds maintain a continuously invested pool with periodic liquidity windows.
This structure allows for immediate deployment of capital and simplifies portfolio construction, making it easier to integrate private market exposures into model portfolios. As a result, evergreen funds are increasingly used by RIAs and wealth managers building scalable alternatives allocations.
Industry data shows that evergreen private markets assets exceeded $350 billion in 2024 and are projected to reach approximately $1 trillion by 2028. Around 90 percent of evergreen funds offer quarterly liquidity, supporting their use in semi-liquid portfolio frameworks.
From an allocation perspective, private credit represents the largest share of evergreen assets, followed by private equity and real assets. Fee structures vary, but evergreen funds typically carry both management and performance fees, with total annual costs differing from traditional drawdown vehicles depending on structure and strategy.