Why evergreen funds in private capital are gaining ground
We’re introducing our series on the rise of evergreen fund structures in private markets. Over the series, we’ll explore why these vehicles are gaining momentum and how four leading jurisdictions – Jersey, Guernsey, the United Kingdom, and Luxembourg – are responding. Here, we set the scene.
We’re introducing our series on the rise of evergreen fund structures in private markets. Over the series, we’ll explore why these vehicles are gaining momentum and how four leading jurisdictions – Jersey, Guernsey, the United Kingdom, and Luxembourg – are responding. Here, we set the scene.
A new chapter for private fund structures
Private capital markets are evolving.
For decades, the dominant model in private capital has been the closed-ended fund: capital committed upfront, deployed over a fixed investment period, and returned over a typical 10–12 year lifecycle. That model remains foundational, but it is increasingly being complemented by a different approach.
Evergreen funds (also referred to as semi-liquid structures) operate without a fixed end date. They allow investors to subscribe on an ongoing basis and, in most cases, offer periodic liquidity through redemption windows, introducing a level of flexibility that traditional drawdown funds were not designed to provide.
The distinction is not simply technical. Closed-ended structures optimise for discipline and alignment over a fixed timeframe. Evergreen funds, by contrast, are designed to balance long-term investment with usability, enabling investors to access private markets in a way that better fits modern portfolio construction.
This is not a replacement, but an evolution: a broader toolkit of fund structures responding to a changing investor base.
Why now?
The pace of growth in evergreen funds tells a clear story: this is not a gradual trend, but a meaningful shift in how private markets is designed.
According to PitchBook data, evergreen funds in early 2025 already represented $2.7 trillion in global AUM. That figure has since grown to approximately $3.2 trillion by the end of 2025, with projections suggesting it could reach $5.2 trillion by 2030. This implies a 10%+ annual growth rate, nearly double that of the broader private markets industry[1].
That level of growth reinforces what the launch data is already showing. According to Preqin, in 2025 alone, a record 123 evergreen funds were launched, with 2026 already on track to exceed that figure with 30 vehicles launched in the first two months of this year. More notably, more evergreen funds were launched between 2023 and 2025 than in the previous seven years combined[2].
Together, these trends point to something more fundamental than product innovation.
The real driver: private wealth
Evergreen funds are often positioned as a liquidity solution. In reality, liquidity is just the enabler and the real driver is the growing role of private wealth and retail investment in private markets.
As global wealth expands , evergreen structures are a very suitable way for individuals to invest in private markets without barriers to investment such as long lock-up periods. More than a third of European private wealth investors have already invested in these vehicles, with many more exploring opportunities.
Ultimately, evergreen funds help inlock private markets at scale.
From product innovation to distribution strategy
Evergreen structures are moving beyond innovation into strategy.
For fund managers, the appeal is not just structural, it’s commercial. Private wealth represents a large and still underpenetrated capital pool. As institutional fundraising becomes more competitive, reaching new LPs is increasingly critical to long-term growth.
The surge in evergreen funds being launched reflects this pivot. More evergreen funds were brought to market between 2023 and 2025 than in the previous seven years combined, signalling a deliberate shift in how products are designed and distributed[3].
The model is evolving from episodic fundraising towards something closer to continuous capital formation, reshaping how managers think about lifecycle, investor engagement and scale.
Regulation enabling scale
Regulation is reinforcing, rather than driving, this transition.
Frameworks such as ELTIF 2.0 have lowered investment thresholds, broadened eligible assets and improved liquidity features, making it easier to package private strategies for the private wealth market.
The result is a growing pipeline of evergreen-style vehicles designed for broader investor access, particularly across Europe.
A shift in how private assets are held
There is also a deeper implication.
Traditional closed-ended funds are structured around realisation and assets are acquired, managed and ultimately sold within a defined timeframe. Evergreen funds introduce the possibility of holding assets for longer, or even indefinitely, while still providing periodic liquidity.
Over time, this may shift private markets from a tactical allocation to a more permanent component of diversified portfolios.
Evergreen funds are not simply an alternative structure, they are reshaping how private markets are accessed, distributed and used.
Why evergreen funds are rising across key jurisdictions
While the global drivers are consistent, adoption varies by jurisdiction:
In the rest of this series, we explore each jurisdiction in more detail, examining how their regulatory frameworks and fund ecosystems are evolving to support evergreen private markets.
What comes next
Evergreen funds are moving from niche innovation to a core part of private market strategy.
For fund managers, this raises practical questions:
At Belasko, we work closely with managers navigating these decisions, supporting structuring, jurisdictional choice and operational delivery across evergreen strategies.
If you’re considering an evergreen fund structure, or comparing how different jurisdictions might support your strategy, we’d be very happy to start a conversation.
[1]https://pitchbook.brightspotcdn.com/3e/4d/6eaaea124ccab578ee0335525167/2030-private-market-horizons.pdf
[2]https://www.preqin.com/news/evergreen-funds-set-off-at-record-breaking-pace-in-2026
[3]https://www.preqin.com/news/evergreen-funds-set-off-at-record-breaking-pace-in-2026
Written by
Alex Di Santo
Head of Institutional
Alex Di Santo joined Belasko in February 2026 as Group Head of Institutional, based in Jersey.
Alex brings over 20 years’ experience in private capital fund administration and senior leadership roles across the private equity space. He brings deep expertise in private equity and private debt, having worked with managers ranging from first-time funds to global platforms across multiple jurisdictions.
At Belasko, he leads the institutional commercial strategy, with responsibility for driving revenue growth, strengthening client relationships and expanding the firm’s market presence, overseeing sales, marketing and business development. Alex also serves on the Board and Executive Committee, contributing to the Group’s strategic direction.
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