Private Markets See Historic Shift to Evergreen Fund Structures, PitchBook Reports

What's New

According to PitchBook's latest report "The Evergreen Evolution," a significant transformation is underway in private markets as major asset managers pivot toward evergreen fund structures, with over 200 fund launches since 2019 targeting the private wealth channel and nearly $400 billion currently managed in these vehicles.

Why It Matters

This structural shift represents a fundamental change in how private market investments are accessed and managed, potentially unlocking trillions in capital from private wealth investors while providing asset managers with more stable, recurring revenue streams.

Big Picture Drivers

• Demand: Private wealth channel, with $450 trillion in net assets, seeks greater access to private market investments

• Innovation: New fund structures and technologies enable management of larger investor bases with more dynamic liquidity features

• Economics: Asset managers pursue more predictable fee streams and broader investor bases amid institutional allocation constraints

• Regulation: Evolution of investment structures makes private markets more accessible while maintaining investor protections

By The Numbers

• $15 trillion: Current private market AUM in traditional drawdown funds

• $400 billion: Assets in private-wealth-targeted evergreen vehicles

• 230+: New private market funds launched since 2019 targeting private wealth

• 37%: Average private market allocation for single-family offices with $2.6B+ net worth

Key Trends to Watch

• Platform Growth: Major firms like Blackstone, KKR, and Apollo are rapidly expanding their private wealth distribution capabilities.

• Product Innovation: New hybrid products emerging, including public-private investment solutions and ETF structures.

• Technology Integration: Digital platforms enabling smaller managers to access private wealth channels more efficiently.

• Institutional Adoption: Traditional institutional investors increasingly embracing more liquid evergreen structures for portfolio flexibility.

The Wrap

The private markets industry is experiencing a generational shift from traditional closed-end funds to more accessible evergreen structures, driven by technological advancement, regulatory evolution, and growing demand for alternative investments among wealthy individuals.