{"id":1221,"date":"2023-02-09T10:14:26","date_gmt":"2023-02-09T10:14:26","guid":{"rendered":"https:\/\/iqeq.com\/cn\/services\/hybrid-funds\/"},"modified":"2026-04-28T15:22:44","modified_gmt":"2026-04-28T15:22:44","slug":"hybrid-funds","status":"publish","type":"service","link":"https:\/\/iqeq.com\/cn\/services\/hybrid-funds\/","title":{"rendered":"Hybrid, evergreen and semi-liquid funds"},"content":{"rendered":"
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\n \n Overview <\/p>\n <\/div>\n<\/section>\n\n
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As markets evolve, investors are increasingly drawn to flexible structures that blend private market access with periodic liquidity. Hybrid, semi\u2011liquid and evergreen funds<\/a> are gaining momentum, continuously raising capital, onboarding new investors and managing ongoing redemptions. This shift unlocks new opportunities, but it also introduces a heightened level of operational complexity.<\/p>\n

At IQ-EQ, we help our clients navigate the operational and regulatory challenges that come with blending liquid and illiquid assets and creating perpetual structures.<\/p>\n

And we do it with more than just strong administration. IQ-EQ combines deep fund admin experience with specialist capabilities across AML\/KYC<\/a> investor onboarding, AIFM and depositary services, and real-time portfolio monitoring \u2013 giving fund managers truly comprehensive support at every step.<\/p>\n <\/div>\n<\/section>\n\n

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370+<\/p>\n

evergreen, open-ended and semi-open structures serviced<\/p>\n <\/div>\n

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120+<\/p>\n

Specialists with deep expertise in these structures<\/p>\n <\/div>\n

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Single end-to-end system<\/strong> (PFS Paxus) servicing both liquid and illiquid assets<\/p>\n <\/div>\n

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4<\/p>\n

regulated AIFM platforms across Europe<\/p>\n <\/div>\n

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Proprietary SaaS MaxComplyTM<\/sup> <\/strong>delivering investor onboarding and AML\/KYC compliance at scale<\/p>\n <\/div>\n

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IQ-EQ Cosmos<\/strong> providing consolidated investment and accounting records across entire portfolio<\/p>\n <\/div>\n <\/div>\n <\/div>\n<\/section>\n\n

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Evergreen and ELTIF 2.0<\/h2>\n <\/div>\n<\/section>\n\n
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Evergreen funds, in particular, are gaining traction as managers seek to tap into the broader \u201cretail\u201d markets opened up by frameworks like the EU\u2019s evolved ELTIF 2.0<\/strong><\/a>, which came into effect in January 2024.<\/p>\n

ELTIF 2.0 funds saw +66% year-on-year growth<\/strong> between 2024 and 2025, with 113 funds<\/strong> launched in 2025. (Source: ESMA, April 2026)<\/p>\n

The top three domiciles for ELTIF 2.0 launches are Luxembourg<\/strong>, France<\/strong> and Ireland<\/strong> \u2013 and at IQ-EQ we\u2019ve honed full ELTIF service offerings in all three of these jurisdictions, including licensed AIFM services<\/a>.<\/p>\n

We proudly supported more than 20 evergreen funds in 2025 alone, including multiple ELTIFs. Read our case studies below for further information on the support and expertise we provide in this space.<\/p>\n <\/div>\n<\/section>\n\n

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Build resilient evergreen funds with IQ-EQ<\/h3>\n

Evergreen funds are powerful but inherently complex, and they only thrive with a tight, disciplined operating model. Automation, strong governance and transparent processes aren\u2019t optional; they\u2019re the backbone of sustainable performance. NAV\u2011based methodologies, scalable technology and rigorous compliance frameworks ensure managers can operate with confidence and consistency.<\/p>\n

With the right infrastructure and expertise in place, managers can unlock the full potential of perpetual capital while protecting investor trust. Contact us today to explore how our operational support can help you build and maintain the robust model an evergreen structure demands.<\/p>\n

Speak to an expert<\/a><\/p>\n <\/div>\n<\/section>\n\n

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Why IQ-EQ?<\/h2>\n <\/div>\n<\/section>\n\n
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We solve your operational challenges, streamlining your hybrid fund endeavours and setting you up for success<\/h3>\n

With hybrid, evergreen and semi-liquid fund structures comes far greater operational complexity, but at IQ-EQ we understand those challenges and provide the solutions to overcome them.<\/p>\n <\/div>\n<\/section>\n\n

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\u00a0 \u00a0 The challenge<\/h3>\n <\/div>\n
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\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 How we can help<\/h3>\n <\/div>\n <\/div>\n<\/section>\n\n
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Rising regulatory scrutiny<\/strong> \u2013 Strong governance is required around liquidity terms and redemption tools, including audit trails, valuation policies and stress-testing. Managers must be able to demonstrate fairness and transparency under both normal and stressed conditions.<\/td>\nAt IQ-EQ, we deliver robust governance frameworks complete with audit trails, valuation policies, and stress-testing embedded into operations.<\/td>\n<\/tr>\n
Valuation challenges <\/strong>\u2013 Illiquid assets require model-based valuations while monthly NAV calculations are needed to facilitate monthly subscriptions, redemptions and fees. Managers need to set fair NAVs for illiquid assets without disadvantaging investors.<\/td>\nWe provide continuous NAV calculation and model validation to ensure accuracy and fairness.<\/td>\n<\/tr>\n
Waterfall complexity<\/strong> \u2013 Perpetual waterfalls must allocate returns fairly across continuous investor flows. Carried interest models require look-backs, clawbacks and resets. Returns must be allocated fairly across perpetual investor flows. Many managers prefer NAV-linked performance fees for simplicity and fairness.<\/td>\nWe have significant expertise in complex waterfall modelling, carried interest structures and NAV-linked performance fee solutions.<\/td>\n<\/tr>\n
Fee complexity<\/strong> \u2013 Fees are calculated continuously, typically NAV-based. Fee calculations require robust controls, accurate pro-ration and strong data governance. Fairness must be maintained across multiple investor cohorts.<\/td>\nWe provide automated fee calculation, strong data governance and robust controls for continuous NAV-based fees.<\/td>\n<\/tr>\n
Liquidity management<\/strong> \u2013 There\u2019s a structural mismatch between illiquid assets and periodic liquidity. Many tools can be used to address this, including redemption gates, notice periods, redemptions-in-kind, liquidity sleeves, swing pricing, dual pricing and anti-dilution levies. Managers must balance investor expectations with portfolio realities.<\/td>\nWe utilise tools such as redemption gates, swing pricing, dual pricing and liquidity sleeves, managed transparently.<\/td>\n<\/tr>\n
Slow-pay scenarios <\/strong>\u2013 Slow-pay scenarios are triggered when redemption requests exceed liquidity buffers and may require delayed or pro-rated redemptions, run-off classes or suspensions. Redemption pressures must be managed while protecting the remaining investors.<\/td>\nWe provide clear communication, structured redemption processes and the necessary governance to ensure fairness in stress periods.<\/td>\n<\/tr>\n
Commitment and capital call approach <\/strong>\u2013 Some funds use commitments and scheduled capital calls. Commitment-based methods reward early investors but add complexity. NAV-based allocation is cleaner, fairer and recommended for perpetual structures.
\n<\/strong><\/td>\n		We deliver NAV-based allocation models for cleaner, fairer investor treatment and simplified operations.<\/td>\n<\/tr>\n
Scalability and operational cost <\/strong>\u2013 Evergreen funds operate perpetually, creating an \u201calways on\u201d workload. Manual processes can become strained and unsustainable as scale grows. Managers need access to automation, outsourcing and technology to support perpetual operations.
\n<\/strong><\/td>\n		Outsourced solutions is the name of our game. We provide technology-driven automation and scalable fund administration, middle-office and investor services to support you now and long into the future.<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n <\/div>\n<\/section>\n\n
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Our key services<\/h3>\n
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  • Fund administration excellence
    \n<\/strong>– Accurate NAV calculations, fee accruals and investor reporting across perpetual dealing windows
    \n– Proven ability to handle high\u2011volume transactions and complex waterfalls<\/li>\n<\/ul>\n
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    • AML\/KYC onboarding at scale
      \n<\/strong>– Streamlined investor onboarding with robust compliance controls
      \n– Leveraging Maxcomply\u2122 to manage large\u2011volume onboarding efficiently, ensuring speed without compromising regulatory standards<\/li>\n<\/ul>\n
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      • AIFM services for governance and oversight
        \n<\/strong>– Independent risk management, regulatory alignment and oversight under AIFMD
        \n– Ensures fairness, transparency and investor protection across jurisdictions<\/li>\n
      • Portfolio monitoring in real time
        \n<\/strong>– Continuous tracking of performance, liquidity sleeves and valuation inputs
        \n– Enables proactive decision\u2011making and transparent communication with investors<\/li>\n<\/ul>\n <\/div>\n<\/section>\n\n
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        Get in touch today to discuss how we can support your hybrid fund ambitions.<\/h2>\n
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