Over the past decade, private markets have undergone a quiet revolution. Once the exclusive territory of large institutional investors committing capital to closed-end funds, the asset class has expanded its reach. The catalyst? A surge of interest in open-ended or “evergreen” structures that promise greater accessibility, flexibility, and diversification.
From Niche to Mainstream
The European Long-Term Investment Fund (ELTIF) has been a major driver of this change. Following the 2024 introduction of ELTIF 2.0, the number of funds on the market surged, with more than 55 launched in a single year as of March 2025 according to ScopeExplorer. For the first time, a regulated framework allows a broader spectrum of investors—including retail clients—to participate in long-term, illiquid opportunities such as infrastructure, private equity, and real estate.
This shift has transformed evergreen funds from a niche offering for semi-professional investors into a mainstream option attracting both wealth managers and institutions. According to Preqin, semi-liquid products now number more than 500 worldwide, with an estimated market size of at least USD 350 billion. Data as of end of 2023 according to Preqin.
Why Evergreen?
The appeal of evergreen funds lies in their balance between long-term exposure and controlled liquidity. Unlike traditional closed-end funds with capital calls and rigid lock-ups, evergreen structures allow regular inflows and, under defined conditions, redemptions. They mitigate the infamous “J-curve” of negative early returns by relying on secondaries, co-investments, or warehouse solutions to ensure portfolios are invested from day one.
For investors, this means:
- Time-weighted returns comparable to liquid markets.
- Simplified access without capital calls.
- Flexible entry and exit points aligned with individual wealth planning.
Yet, the semi-liquid label should not be misunderstood. These remain illiquid investments at their core, requiring patience and a horizon of at least a decade. Managing liquidity—balancing deal flow against investor flows—is a key test of provider expertise.
Infrastructure as a Growth Engine
Nowhere is the need for private capital greater than in infrastructure. Studies suggest that up to 70% of the infrastructure required by 2050 does not yet exist. The energy transition, digital connectivity, and resilient public services demand trillions in investment. Governments are responding: Germany, for example, has introduced a dedicated infrastructure quota for institutional portfolios and launched a €500 billion public infrastructure fund.
Evergreen funds can play a pivotal role here by mobilizing private capital alongside public initiatives. As Friedrich Merz recently noted, even a fraction of household savings redirected into infrastructure could transform the landscape.
Expanding the Investor Universe
Importantly, evergreen funds do not replace closed-end vehicles but expand the toolkit. For institutional investors, they provide flexibility and dynamic allocation. For private clients, they open the door to diversification and long-term wealth building in asset classes once considered inaccessible. Multi-private market strategies, spanning private equity, infrastructure, and credit, further enhance diversification and reduce concentration risk.
The Road Ahead
Education remains critical. Investors must understand both the potential and the risks: illiquidity, regulatory shifts, and project execution challenges. Transparency, robust liquidity management, and clear communication will determine which providers succeed in this evolving space.
The bottom line: evergreen private markets are no longer an experiment. They are an essential bridge between long-term investment opportunities and the growing demand for accessible, flexible solutions. For investors and society alike, their potential is only beginning to unfold.
