Diversification depends on deal flow

Indeed, one of the key advantages of the multi-GP evergreen structure is the sheer breadth of deal flow and deployment efficiency. This diversified exposure, across vintages, sectors, geographies, and strategies, provides a one-stop shop solution for wealth managers to provide broad market access to private assets.

Despite the multi-manager exposure, evergreen structures are actively managed investment programs, not warehousing facilities, designed to provide targeted exposure while retaining governance and liquidity oversight.

A fundamental determinant of success in the evergreen model is the ability to consistently source high-quality deals. Single-GP funds require deeply integrated, often decentralised sourcing platforms to ensure a steady pipeline of opportunities. For multi-GP strategies, access to a broad universe of trusted managers and strong underwriting capabilities is equally critical.

Dealing with deal sourcing

The unique demands of deal sourcing is a significant barrier to entry and explains why traditional asset managers are forming strategic partnerships with GPs.

While some entrants are pursuing passive, fund-of-fund-like evergreen models, these often lack the agility and control necessary to manage liquidity and risk in a dynamic private markets environment. They are considered a risk by GPs.

“Your liquidity management depends on capital calls of third party managers. So you give up your control of liquidity, which is essential for an evergreen fund.”

remarked a private wealth executive of a prominent European private markets group.

The growth trajectory of evergreen funds is clear.

Managing liquidity while investing in inherently illiquid assets requires a robust operational framework.

Well-constructed evergreen funds – both multi- and single-GP structures – deploy multiple mechanisms to manage liquidity including:

Liquidity buffers, often 15–20% of NAV
Redemption caps, often 5% per quarter
Distribution yield targets, deliberately set below the underlying yield
Structural leverage under regimes like ELTIF 2.0
Asset allocation strategies, balancing longer-dated private equity with yield-generating private credit or infrastructure in multi-asset evergreen portfolios

Once viewed primarily as a vehicle for wealth management clients, these structures are increasingly being embraced by institutional investors who value their simplicity, scalability, and the compounding effect of long-term capital deployment.

"It’s all about compounding returns. If you invest in an evergreen fund, you have compounding returns. And this is super powerful."

MD, Secondaries & Co-investments, global private markets group.