How do you choose a good Evergreen private equity fund?
Summary
The market for evergreen private equity funds is still in its infancy, unlike traditional funds, in which institutional investors have been investing for 60 years. Antoine Duchiron outlines three structural differences to consider before choosing an evergreen fund: the nature of the underlying strategy (debt, real estate, infrastructure, or pure private equity); the choice between a closed architecture (in-house deals) and an open architecture (selection of the best managers on the market); and, finally, liquidity structuring, particularly the gate mechanisms that allow the Fund manager restrict redemptions.
He also explains why generating returns is a complex challenge for an Fund manager , who is torn between the pursuit of outperformance (long-term primary funds) and the obligation to provide liquidity to private clients. He concludes by discussingAltaroc approach, which is built on the 30 years of evergreen experience of its founder, Maurice Tchenio, co-founderApax creator of Altamir.
