Choosing a Good Evergreen

Evergreen funds, or open-ended funds, have recently been developed to meet the liquidity needs of private investors seeking exposure to the private market. To choose the right vehicle of this type, it is essential to first analyze the underlying strategy, as very few funds are 100% invested in pure private equity, as offered by Altaroc. It is also important to verify whether the fund operates under an open architecture—which guarantees complete independence in selecting the best managers—or whether it operates under a closed architecture. The most critical aspect of the analysis remains liquidity management. Indeed, if the assets in the portfolio are too illiquid, the Fund manager may be forced to activate “gates” to restrict or block client withdrawals. Striking the right balance between the pursuit of performance and this liquidity requirement demands specialized expertise.Altaroc draws on the more than 30 years of experience its founder, Maurice Tchenio, gained at Altamir to design products capable of generating returns more quickly.