Delve into the increasingly popular world of evergreen funds—private equity vehicles without a fixed lifespan. This white paper clarifies the mechanics of perpetual capital deployment, ongoing valuations, and managed liquidity windows. It examines how evergreen structures can better align with long-term investors like family offices and endowments, highlighting potential advantages such as steady value creation, flexible reinvestment, and closer alignment with patient capital. At the same time, it addresses critical challenges, including fee accrual, transparency in valuations, and governance complexities. Drawing on real-world case studies and market data, this resource offers practical guidance for LPs and GPs seeking to navigate the unique opportunities and risks in these perpetually structured funds.
By clarifying the fundamentals of perpetual fund design and diligence, this report helps practitioners effectively evaluate, negotiate, and operate evergreen structures.
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