“If you are not at the table, you are on the menu.” This phrase has become strikingly relevant in today’s political and investment landscape. In a world defined by instability, rapid shifts in monetary conditions and ongoing liquidity stress, the saying captures a growing truth: those who don’t adapt to structural change risk being overtaken by it.
Few areas of financial markets reflect this more clearly than private markets. Known for their ability to evolve through cycles, private markets have again demonstrated their resilience by re‑engineering the very structures through which capital is raised and deployed. Liquidity, long regarded as the unavoidable sacrifice for accessing private assets, has become the new frontier. And at the centre of this evolution sits the rise of evergreen and semi‑liquid structures.
These vehicles allow investors to subscribe and redeem without relying on the rigid cadence of traditional capital calls and distributions. The result is a more flexible, more accessible and more durable pathway into private markets – one that aligns with what modern allocators increasingly demand.
A market in acceleration
The data paints a picture of structural, not cyclical, expansion. According to Preqin Pro, as of January 2025, there were 825 semi‑liquid fund structures in market – an all‑time high. From 2010 to 2025, the category grew at a 15.5% compound annual growth rate (CAGR), reflecting sustained investor appetite and increasing manager conviction.
Since 2015, the evergreen segment has doubled every five years, marking one of the fastest compound growth curves across private markets strategies. Momentum peaked in 2021, which saw 85 new launches, before a temporary 15% contraction in 2022, consistent with broader market tightening. The rebound was swift: 33 new launches in 2024 (+35%), signalling renewed confidence as markets stabilised.
Regulation has also emerged as a catalyst. European long-term investment funds (ELTIFs) now account for 70% of 2025 launches, underscoring how policy frameworks are reshaping access to long‑term private assets for a broader investor base.
Where the ecosystem lives
The geography of evergreen adoption remains highly concentrated. The U.S. dominates with 519 fund structures, followed by France (86), Australia (51), the UK (50) and Italy (37). Together, these five markets represent more than 90% of all semi‑liquid funds globally, highlighting the importance of strong regulatory regimes and investor familiarity.
When looking at fund domiciles, the concentration is even more pronounced.
- Delaware leads with 305 structures, nearly half of the global total
- Luxembourg follows with 142, propelled by the ELTIF regime
- Maryland (92) remains a key hub for business development company (BDC) and real estate investment fund (REIT) oriented strategies.
- Other notable domiciles include Australia, France, the UK, Ireland, Italy and Spain, many of which are tied directly to ELTIF adoption
This distribution reveals a clear trend: evergreen structures proliferate where legal clarity, fund governance and regulatory innovation intersect.
What evergreen capital backs
Across 842 structures analysed by Preqin, the dominant theme is unmistakable: evergreen structures align most naturally with yield‑oriented, lower‑volatility assets that support predictable liquidity cycles.
Most prevalent strategies include:
- Direct lending – 207
- Direct lending (senior debt) – 91
- Real estate – 50
- Fund of funds — 48
- Real estate value‑added – 21
- Venture debt – 21
- Private debt fund of funds – 19
- Growth equity – 34
- Infrastructure core – 17
Across the 842 evergreen and semi‑liquid structures analysed, a clear pattern emerges: these vehicles overwhelmingly concentrate on income‑generating, lower‑volatility asset classes where managers can support predictable valuation cycles and disciplined redemption mechanics. Rather than stretching liquidity across high‑beta or long‑duration strategies, the market has gravitated toward areas where cashflows, duration and pricing cadence naturally align with the evergreen model.
Direct lending dominates, with 207 structures focused on corporate credit and a further 91 dedicated specifically to senior secured lending. This combined universe represents the largest share of evergreen activity, reflecting the asset class’ inherent suitability for structures offering periodic redemptions. Shorter-duration loans, recurring coupon payments and transparent underwriting cycles create an architecture where fund managers can balance inflows and outflows without compromising portfolio construction.
Beyond credit, real estate plays a significant role, with 50 generalist real estate, 42 core mandates and an additional 21 with value‑added strategies. The presence of both income-oriented (core) and moderate-enhancement (value-added) strategies signals that managers see evergreen vehicles not only as yield platforms but also as a mechanism to hold and improve assets over longer horizons without the forced sale pressure typical of closed-ended funds.
Diversification remains a defining feature of evergreen product design. Categories such as fund of funds (48), private debt fund of funds (19), and infrastructure core (17) highlight the appeal of multi‑strategy and multi‑manager approaches, which can smooth cashflow volatility and enhance liquidity management. Meanwhile, emerging areas like venture debt (21) and growth equity (34) reflect the industry’s willingness to extend evergreen structures into segments historically dominated by closed-end funds, provided the underlying cashflow and liquidity characteristics are manageable.
Market views: how industry participants see the future of evergreen
Across conversations with managers, advisors and allocators, one theme is consistent: evergreen is moving from a specialist product to a core strategic architecture in private markets. Industry participants increasingly view evergreen vehicles as the model best positioned to capture the next wave of demand – particularly from wealth channels, pension schemes and institutions seeking smoother capital pacing.
Many expect evergreen structures to become the default home for private credit, citing the strong match between asset duration and redemption cycles. Others see evergreen as a natural evolution for real estate and infrastructure, where long-term holding periods align with investor appetite for stability and income. A growing number of managers also believe evergreen will reshape the fundraising model itself, reducing reliance on episodic capital raises and enabling stronger lifetime client relationships.
As one global allocator put it, “Evergreen isn’t just another wrapper. It’s the structure that finally aligns private markets with how investors actually want to invest.” Another manager noted that evergreen is “the biggest shift in private markets design since the institutionalisation of closed-end funds – and it’s only accelerating.”
The industry consensus is clear: the future of evergreen is not incremental but transformational. As liquidity expectations evolve and regulation continues to support access and transparency, evergreen structures are positioned to become a central pillar of how private markets scale over the next decade.
How we can help
The evergreen fund market has entered a new phase of maturity. With regulatory frameworks like ELTIF 2.0 accelerating adoption and investor demand shifting toward more flexible private markets access, the question is no longer whether to launch an evergreen vehicle – but how to do it right.
From direct lending platforms to real estate core strategies, IQ-EQ has the expertise to structure, launch and administer evergreen and semi-liquid funds that meet the demands of today’s allocators. Whether you’re navigating ELTIF compliance, designing redemption mechanics, or scaling distribution across wealth and institutional channels, we’re equipped to support you at every stage.
Ready to explore evergreen structures for your next fund? Get in touch today.
Source: Preqin Pro as at 7 January 2026
