Evergreen funds: why liquidity pressures aren’t deterring family offices

By Stuart Pinnington, Global Head of Asset Owners

Evergreen funds are growing fast, but recent liquidity pressure has raised questions. Family offices are not retreating. This isn’t blind optimism, but rather structural alignment. 

The rise of evergreen (or “semi-liquid”) private market structures has become one of the defining shifts in alternative investing. By the end of 2025, evergreen funds held $534.6 billion in assets under management (AUM), marking a year-on-year increase of more than 25%. 

However, recent gating events across U.S. non‑traded business development companies (BDCs) and private credit evergreen vehicles – where restrictions have been placed on a fund to temporarily limit or halt the amount of money investors can withdraw – have triggered vigorous debate about the resilience and suitability of these structures. 

And yet, the market is seeing sustained demand from family offices. In this article, we explore the reasons why evergreen funds are holding their appeal among family offices, even in the face of liquidity pressures.  

Family offices understand that liquidity is a tool, not a promise

Much of the recent public tension around evergreen structures stems from differing expectations of liquidity. Retail investors often enter these vehicles believing they can redeem when needed, without fully appreciating the underlying illiquidity of private markets. 

Indeed, for many retail allocators, the recent news of several U.S. non‑traded BDCs and evergreen private credit funds triggering redemption gates after quarterly requests exceeded the typical 5% of net asset value (NAV) limit, felt like an unexpected shock. For family offices, it was a familiar reminder: private assets are illiquid by design, and no wrapper can fully change that. 

Family offices recognise that: 

• Gating is a protective mechanism, not a signal of asset distress 
• Illiquid strategies cannot sustainably offer open‑ended liquidity windows 
• Liquidity should never compromise the integrity of the portfolio or the quality of assets held 

Speaking at a recent evergreen funds seminar hosted by IQ-EQ, one investment executive noted, “gating is not a betrayal; it is a predictable outcome when liquidity demand exceeds what private assets can accommodate.” 

This is why family offices remain unfazed. Their internal governance frameworks, liquidity planning and risk appetite already integrate the reality that liquidity in private markets is conditional. Evergreen structures, therefore, sit comfortably within their broader strategic architecture. 

In our experience working with family offices and asset owners, we find that investors don’t reject liquidity limits when they’re clearly understood, planned for and governed well. 

Five reasons why evergreen funds align with family capital

The recent period of stress has clarified why family office investors are structurally well‑suited to the evergreen model, but here are five top reasons why family offices find evergreen structures so appealing: 

1. Evergreen structures support intergenerational compounding

A family office’s core focus is usually intergenerational wealth preservation. The continuous reinvestment offered by evergreen structures keeps capital at work, acting as a natural compounding engine – something closed‑ended funds struggle to maintain across distribution cycles. 

2. They reduce administrative and operational burden

Family offices appreciate the simplicity of avoiding capital calls, redistributions and reinvestment risk – especially leaner single-family offices without large investment teams. Also, the ability to modulate exposure without triggering a new fund cycle or navigating complex subscription mechanics. 

3. They provide right‑sized liquidity

Not fully liquid, not fully locked up. This middle ground supports dynamic portfolio management without compromising long-term investment posture. 

4. They democratise access to private markets without diluting institutional discipline

For family offices looking to scale exposure to private credit, real assets and private equity secondaries, evergreen structures offer a balanced gateway. 

5. They align with the real behaviours of long-term investors

Where retail flows can be reactive, family offices act with horizon discipline. As sophisticated investors (more institutional than retail in nature), they understand the mechanics of gates, NAV‑based valuations and the opportunity cost of liquidity reserves. 

In a nutshell, evergreen funds are built for investors who value patience, governance and long-duration compounding – the core pillars of family wealth. 

How IQ-EQ can help

Family offices navigating private markets increasingly seek partners who understand both the complexity of alternative assets and the long‑term mindset of multi‑generational capital. With deep experience across private credit, real assets and private equity, we support families in building resilient, well‑governed portfolios that align with their investment philosophy and liquidity needs. We also support GPs launching evergreen funds and understand the nuances of these structures compared to more traditional investment vehicles. 

We provide end‑to‑end operational, administrative, governance and reporting services tailored to family office teams. Our combination of global scale and boutique‑level attention ensures family offices can access institutional‑grade capabilities while maintaining the clarity, control and flexibility essential to stewarding family wealth. Please get in touch today to speak to a member of our expert team. 

About the author 

Stuart Pinnington began his career as a lawyer working for some of the top London and offshore law firms and has since garnered over 15 years’ leadership experience in the investor services space, including both operational and client-facing roles. He joined IQ-EQ as a managing director in January 2018 and held a series of leadership positions, including Head of Alternative Assets, before being named Global Head of Asset Owners in 2025. Stuart holds deep industry expertise across the alternative assets sphere and works closely with private and institutional investors to help them access private markets either through direct structures or as a limited partner. He is featured in eprivateclient’s 50 Most Influential ranking for 2026. 

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