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Evaluating Evergreens: Navigating the Subtleties of Private Markets Fund Structures

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In the evolving landscape of private markets investing, the rise of evergreen (perpetual-life) fund structures is reshaping how financial advisors and professional investors access alternative assets. While traditional drawdown funds have long been the standard, evergreens offer a compelling alternative—one that emphasizes simplicity, continuous compounding and full capital deployment.

This piece explores the nuanced differences between these two structures—not just in how they operate, but in how their returns are calculated, perceived and ultimately realized. Through a clear, data-driven comparison, we reveal that the choice between evergreen and drawdown funds often hinges less on performance potential and more on structural alignment with investor goals.

For advisors and investors alike, understanding these subtleties is key to making informed allocation decisions in the private markets.

 

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Ares Management

Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, real estate, private equity and infrastructure asset classes. We seek to advance our stakeholders’ long-term goals by providing flexible capital that supports businesses and creates value for our investors and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles.

As of March 31, 2026, Ares Management Corporation’s global platform had nearly $644 billion of assets under management, with operations across North America, South America, Europe, Asia Pacific and the Middle East. Ares manages over $62 billion on behalf of 282 third-party insurance companies globally. For more information, please visit www.ares.com.

Robert Torretti  
Partner, Co-Head of Insurance, Americas Relationship Management  
rtorretti@aresmgmt.com
212-515-3385

Amanda Healy   
Partner, Co-Head of Insurance, Americas Relationship Management   
ahealy@aresmgmt.com
212-515-3351

Ares Management
245 Park Avenue, 44th Floor,
New York, NY 10167

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