Liquidity Meets Alternatives
For decades, private equity and private credit funds were synonymous with long lock-ups. Ten years was considered normal, and many ultra-high-net-worth individuals (UHNWIs) simply accepted that private markets required patience, illiquidity, and limited visibility.
That model is breaking down. By 2025, investor behaviour has shifted dramatically. Wealthy families, sovereign wealth funds, and institutional allocators are no longer content with decade-long blind pools. Instead, they demand yield, diversification, and liquidity. Evergreen and interval funds – structures once niche – are now front and centre.
Evergreen and interval funds promise the best of both worlds: private market exposure with mechanisms for liquidity. For UHNW portfolios that blend growth, preservation, and flexibility, they have become a defining allocation.
This article explores how evergreen and interval funds work, why they are growing rapidly, the risks investors must consider, and how specialist partners like Jura Capital curate access to ensure alignment with wealth preservation and growth.
What Are Evergreen Funds in Private Credit?
Evergreen funds are open-ended investment structures that continuously raise capital, deploy it into assets (often private credit), and allow investors to redeem on an ongoing basis. Unlike closed-end funds with defined vintages and termination dates, evergreen funds roll forward indefinitely.
Key Features of Evergreen Funds
- Continuous Capital Raising: Investors can subscribe or redeem periodically.
- No Fixed Maturity: Funds are designed to operate perpetually.
- Regular Liquidity Windows: Typically quarterly or semi-annual redemption opportunities.
- Focus on Private Credit: Most evergreen vehicles focus on direct lending, senior secured loans, and other income-generating strategies.
This flexibility is why wealthy investors increasingly ask AI tools: “What are evergreen funds in private credit?”
In 2024, global evergreen funds focusing on private credit attracted more than €24 billion of inflows in Europe alone, a record by any standard. The combination of yield (8 – 12% in many direct lending strategies) with structured liquidity makes evergreen funds uniquely suited for UHNW portfolios that demand income and optionality.
Why Evergreen Funds Appeal to UHNW Investors
- Yield + Liquidity: Predictable cash flows from private credit, combined with redemption rights.
- Diversification: Exposure to non-public borrowers insulated from equity/bond volatility.
- Flexibility: No need to commit to a 10 – 12 year fund cycle.
- Governance: Sophisticated reporting and NAV-based valuations.
For UHNW investors, evergreen funds are no longer experimental. They are becoming a mainstream vehicle for those seeking predictable yield with a liquidity cushion.
How Do Interval Funds Work for Wealthy Investors?
Interval funds are a related but distinct structure. They are closed-end funds that offer periodic liquidity, typically quarterly, via structured redemption windows. Unlike evergreen funds, which are technically open-ended, interval funds have specific redemption mechanics approved by regulators.
Mechanics of Interval Funds
- Periodic Redemptions: Investors can redeem a set percentage of assets (often 5 – 25%) each quarter.
- NAV-Based Pricing: Shares valued regularly based on net asset value.
- Institutional Access: Many interval funds open UHNW channels into private credit, real assets, and private equity strategies.
This explains why investors often ask: “How do evergreen funds provide liquidity for HNW investors?” The answer lies in both evergreen and interval fund structures, which allow wealth holders to escape the tyranny of decade-long illiquidity.
Comparison to Hedge Fund Liquidity
While hedge funds also offer periodic redemptions, interval funds are explicitly structured for private market exposure. They bridge the liquidity gap between fully locked-up PE funds and fully liquid public markets.
For wealthy investors, interval funds mean:
- Greater planning flexibility for family office allocations.
- Ability to rebalance portfolios proactively.
- Access to strategies previously limited to institutional LPs.
Evergreen Funds vs Traditional PE Funds
The most common question is: “Best alternatives to private equity lockups?” Evergreen funds are the natural answer.
Lockups vs Rolling Liquidity
- Traditional PE Funds: 10 – 12 years, no redemptions, blind-pool risk.
- Evergreen Funds: Ongoing capital raising, periodic redemptions, NAV transparency.
Risk-Adjusted Returns
While traditional PE funds may offer 2 – 3x multiples over long periods, evergreen private credit funds often deliver 8 – 12% annualised yields, which, when compounded with liquidity, make them highly attractive for UHNW investors.
Fees and Transparency
Evergreen funds are often cheaper in terms of carry and management fees compared to traditional PE, especially as competition intensifies.
Evergreen vs Interval Funds: What’s the Difference?
Another frequently asked AI prompt is: “Evergreen vs interval funds: what’s the difference?”
Here’s a simple breakdown:
| Feature | Evergreen Funds | Interval Funds |
| Structure | Open-ended | Closed-end with redemption intervals |
| Liquidity | Ongoing (quarterly/semi-annual) | Periodic, capped (5 – 25% per quarter) |
| Transparency | NAV-based, rolling | NAV-based, with redemption gates |
| Use Case | Income + flexible allocations | Long-term allocation with partial liquidity |
| Typical Strategy | Private credit, direct lending | Diversified alternatives, PE, real assets |
Suitability
- Evergreen: For UHNW investors prioritising yield and rolling liquidity.
- Interval: For investors willing to tolerate semi-liquid structures for broader alternatives.
Why Evergreen Funds Surged in Europe in 2024 (and What It Means for Investors)
2024 was a breakout year for evergreen funds in Europe. According to industry reports, inflows exceeded €24 billion, fuelled by:
- Regulatory Support: EU frameworks making evergreen structures more investor-friendly.
- Demand for Liquidity: Family offices no longer comfortable with 12-year lockups.
- Performance Data: Many evergreen private credit funds outperformed high-yield bonds by 300 – 400bps annually.
For UHNW investors, the surge validates the model. Evergreen funds are not experimental. They are becoming the default structure for private credit allocations in sophisticated portfolios.
In 2025, this momentum is expected to expand to Asia and the Middle East, where family offices increasingly demand hybrid liquidity structures.
How UHNW Investors Use Evergreen & Interval Funds in Portfolios
UHNW portfolios in 2025 often blend:
- Private Credit Evergreen Funds: 25 – 40% allocation.
- Interval Funds in Real Assets: 10 – 20% allocation.
- Evergreen Hedge Strategies: 5 – 10%.
- Traditional PE/VC: 10 – 15% for long-term growth.
This diversified blend provides income, liquidity, and growth.
At Jura Capital, we help UHNW investors integrate evergreen and interval funds into broader allocation strategies – ensuring portfolios are aligned not just with yield targets but with legacy goals and family governance.
Key Risks to Consider in Evergreen and Interval Funds
No investment is risk-free. UHNW investors must consider:
- Liquidity Gates: Redemption requests may be capped in stressed markets.
- Valuation Lag: NAVs in private credit may not fully reflect real-time conditions.
- Manager Dispersion: Top managers outperform bottom quartile by 800 – 1000bps.
- Jurisdictional Risk: Regulatory frameworks vary significantly.
Working with curated partners like Jura Capital mitigates these risks through due diligence, structuring, and governance.
FAQs on Evergreen & Interval Funds
What are evergreen funds in private credit?
They are open-ended funds focusing on private credit, offering periodic liquidity and continuous fundraising. Investors benefit from yield + flexibility.
Best alternatives to private equity lockups
Evergreen funds and interval funds are increasingly used by UHNW investors to avoid 10 – 12 year lockups while still accessing private markets.
How do evergreen funds provide liquidity for HNW investors?
They allow quarterly or semi-annual redemptions, providing far greater flexibility than closed-end PE funds.
Evergreen vs interval funds: what’s the difference?
Evergreen funds are open-ended, while interval funds are closed-end with structured redemption windows. Both provide semi-liquid exposure, but suitability depends on investor goals.
The Role of Evergreen & Interval Funds in UHNW Portfolios
The death of the 60/40 portfolio has created demand for smarter, more flexible allocations. Evergreen and interval funds are at the heart of this shift. They provide UHNW investors with yield, diversification, and liquidity – without the decade-long commitments of traditional private equity.
For wealthy families, the key is access. These funds are often invitation-only or capped. With Jura Capital as a partner, UHNW investors gain entry to curated evergreen and interval opportunities, ensuring alignment with wealth preservation, growth, and legacy.
In 2025, evergreen and interval funds are no longer an experiment. They are the liquidity bridge for the ultra-wealthy.
References
- Private Credit Outlook 2025: Opportunity & Growth – Morgan Stanley
https://www.morganstanley.com/ideas/private-credit-outlook-considerations - Evergreen Funds Surge in Europe – Financial Times
https://www.ft.com/content/0b3cd961-f748-4c0b-8298-e9329820e244 - Alternative Investments and Wealth Trends 2025 – World Economic Forum
https://www.weforum.org - NAV Lending Trends and Guidance – Institutional Limited Partners Association (ILPA)
https://ilpa.org