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Private Credit

Evergreen Structures Remain a Work in Progress

August 2023 – 3 min read

In this Q&A, Tyler Gately discusses what’s driving the growing popularity of evergreen vehicles, what the key challenges at the fund structure level are, and how private credit fund structures are likely to evolve going forward.

What are the main fund structures being adopted by private credit managers?

Today, the market within private credit is dominated by two types of fund structures – the traditional closed-end drawdown structure and the evergreen, or open-end, fund. The latter is a new frontier within private markets and is still finding its feet.

The majority of capital is still going into traditional structures, with only around 15-20 percent of the funds in the market today evergreen. Many of these more open-end structures are focused on introducing retail investors to the asset class by incorporating quarterly liquidity, so the shift is driven by a new investor base rather than limited partners.

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Headshot of Tyler Gately smiling at the camera.

Tyler Gately

Head of North America Private Credit

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