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In private equity, investors are rethinking the structures they use to build exposure. For some, this still means traditional drawdown funds that deploy capital over time. But for a growing number, the focus is shifting toward evergreen vehicles, which offer immediate exposure, faster compounding, and new ways to manage allocation and liquidity.
Evergreen funds are becoming a larger part of the market as structures such as ELTIFs in Europe and LTAFs in the UK expand access for a broader pool of investors. These vehicles typically feature lower minimum commitments, continuous fundraising, and periodic redemptions to provide limited liquidity. The global market for indefinite-life funds is already around $2.7 trillion and is expected to reach $4.4 trillion by 2029, with wealth-focused evergreen funds driving much of this growth.
The model appeals because it allows investors to put their money to work immediately, rather than waiting years for a drawdown fund to deploy capital. Since evergreen vehicles are already largely invested, new investors gain exposure from day one, with a small allocation reserved in liquid assets to manage redemptions or capture new opportunities. Capital is automatically recycled when portfolio companies are sold, reducing the risk of being “out of the market” while waiting to reinvest proceeds. Over time, this continuous exposure can compound returns more effectively.
Evergreen funds can achieve similar multiples on invested capital (MOIC) as drawdown funds, but with a lower required internal rate of return (IRR), since capital is deployed earlier and at a higher average allocation.
This makes them especially attractive for individual investors, who may not have the resources to manage capital calls, reinvestments, and oversubscriptions typical of closed-end structures. They can also complement traditional funds, providing a steady allocation base, while drawdown vehicles add targeted exposure across vintages, strategies, or geographies.
Historically, evergreen funds were less common. LPs often preferred the predictability of fixed-term funds, while GPs liked the ability to measure and “lock in” performance metrics at exit. But momentum is shifting.
🔹 Evergreen funds are gaining traction today (2025):
· Venture capital: Sequoia Capital made headlines in 2021 by shifting its U.S. and European VC funds into a single evergreen vehicle, signaling big-name validation. Others like Founders Fund and Sequoia Heritage have adopted similar approaches.
· Private equity secondaries: Ideal for ongoing capital deployment and liquidity management.
· Sustainability and impact strategies: Where patient capital is critical to supporting long-term goals in areas like climate, energy transition, and infrastructure.
🔹 Why now?
· Institutional demand: Pension funds and sovereign wealth funds are increasingly drawn to evergreen funds for long-term exposure without the “J-curve.”
· Regulatory tailwinds: ELTIF 2.0 in Europe and similar reforms are making evergreen structures easier to implement for retail and institutional investors.
· Sector alignment: Capital-intensive, long-horizon areas such as infrastructure, climate tech, and healthcare are a natural fit for evergreen structures.
Deep Dive into Evergreen Funds at 0100 International
At 0100 International, a panel of experienced investors will tackle one of the most discussed topics in private markets: the rise of semi-liquid and evergreen funds.
With market volatility, tighter liquidity, and growing pressure on traditional fund structures, limited partners are rethinking how they access private equity. The session will explore how evergreen vehicles are gaining traction as an alternative model, one that can improve alignment between managers and investors, offer partial liquidity, and open up new channels for capital formation.
The panel brings together a strong mix of perspectives: Senia Rapisarda (HarbourVest), Luigi Croce (Schroders Capital), Shaha Miah (Pantheon), and Federico Pavoncelli (StepStone Group). Each works closely with LPs and private wealth clients on structuring funds, co-investments, and allocation strategies across Europe and beyond. Together, they’ll discuss what drives the adoption of evergreen funds, where the model works best, and what risks investors should consider as these structures evolve.
🌍 Across the Ecosystem | News & Useful Resources for You
We’re not the only ones rethinking what “holding periods” really mean in private equity today. With market cycles shifting, fundraising timelines stretching, and an increasing number of managers turning to evergreen funds, the conversation around flexibility, liquidity, and long-term alignment between GPs and LPs is gaining momentum across Europe and beyond.
Here’s a spotlight on perspectives influencing this change in evergreen private equity.
🗞️ News | EQT launches ELTIF evergreen fund to expand retail access to private equity
EQT has launched the Nexus ELTIF Private Equity fund, expanding its evergreen platform to give more non-professional investors across the EU and EEA access to private markets.
Structured under the EU’s ELTIF 2.0 regime, the fund lowers entry barriers with reduced minimums and broader eligibility, offering individuals a way to invest alongside institutions in EQT’s established private capital strategies. The portfolio contains healthcare, technology, and services, with a presence across Europe, North America, and the Asia-Pacific region.
🗞️ News | KKR recut terms with big backers to hand rich investors larger share of deals
KKR has restructured agreements with its institutional backers to allow wealthy individuals a larger share of its private equity deals, reflecting the rapid growth of money flowing into evergreen funds.
Historically, KKR’s closed-end funds limited affiliated vehicles to 7.5% of deal equity, but with its “K-Series” evergreen funds raising nearly $12bn, the firm sought carve-outs closer to 20%. These perpetual vehicles, which allow investors to commit and withdraw capital regularly, are designed to invest alongside KKR’s flagship buyout funds and have quickly become a major part of its fundraising strategy.
📄 Article | Evergreen funds: What are the liquidity and fund structuring considerations?
Launching an evergreen vehicle involves more than adjusting an existing closed-end model, as managers must carefully address issues like liquidity provisions, transparency, and compliance.
While evergreen funds are expanding access to private equity, their long-term viability depends on strong structuring and regulatory alignment.