Choose Your Vehicle: A Closer Look at Private Market Fund Structures

Abstract

Evergreen fund structures for private markets are enjoying significant momentum, with assets under management standing at over $320 billion across US- and EU-domiciled funds. Initially designed to better address the needs of individual investors, these structures are increasingly being considered by institutional investors as well. With these structures offering better liquidity, ease of implementation and immediate asset class exposure, investors are wondering, are these structures just better?

We do not believe there is a universal best choice between private market fund structures. The decision involves a set of trade-offs along four key dimensions. We believe the assessment should reflect the outcomes of an investment program, rather than a single fund.