⏱ 1 min read
Background
Evergreen funds, or perpetual funds, are meant to provide liquidity in private markets that are illiquid by definition. They are part of the opening of these markets to retail investors.
The key points
Several Evergreen funds can no longer meet their clients' redemption requests, according to Bilan. UBS and Partners Group are on the front line.
Opening private markets to retail investors runs into one obstacle: selling an illiquid product. It ties up capital for several years, with no guarantee of returns.
Key figures
- Partners Group was able to meet only half of redemption requests in June.
What it means for businesses
According to Bilan, UBS reportedly advised its Asian clients to exit private debt. The concentration of UBS investors in Blue Owl reportedly amplified the liquidity crisis.
Further reading
Sources
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