Managing the J-curve with evergreen funds

Private markets have traditionally been the preserve of long-term, closed-end fund structures—often seen as illiquid, operationally complex, and slow to deliver returns. One of the key barriers has been the “J-curve” effect, where initial returns are negative as capital is called and invested over time. Evergreen funds are helping to change this. By calling 100% of capital at the outset and offering exposure to existing portfolios, they allow investors to bypass the early performance drag. Investments such as secondaries—often acquired at discounts—can potentially boost early returns, smoothing...