Evergreen funds - unlocking access and liquidity in Asia Pacific investing

In a rapidly evolving investment landscape, evergreen funds are emerging as a key solution for Asia Pacific investors seeking greater access and liquidity. As retail and high-net-worth individuals gravitate towards more flexible investment structures, evergreen funds are increasingly redefining private-market participation across the region.

Notably, these investors are eager for investment opportunities that promise growth while ensuring liquidity and accessibility. Evergreen funds meet these needs effectively, offering semi-liquid access from the get-go and enabling straightforward entry and exit without the binding timelines typical of closed-end funds.

Evergreen funds also effectively address longstanding challenges associated with traditional investment vehicles, such as capital calls and forced exits. By offering rolling compounding returns, these funds empower investors to better manage the complexities of modern portfolio strategies.

Considering these advantages, the global rise of evergreen funds is more than a passing trend; it marks a meaningful shift influencing the future of Asia Pacific investing. According to Hamilton Lane, evergreen funds now account for nearly US$700bn in global private assets—about 5% of total private markets—with expectations to grow to at least 20% over the next decade¹. This projected growth in evergreen funds is underscored by the launch of Hamilton Lane’s first Asia-focused, semi-liquid private equity fund into the wealth market in July 2025².

At the heart of their value, evergreen funds demonstrate an ability to democratise access and promote inclusivity. By lowering minimum investment requirements and offering built-in liquidity, they reduce entry barriers, making wealth creation more accessible to a broader range of investors, including retail participants. A prime example is Australia’s Pacific Equity Partners’ (PEP) Gateway fund, open to retail investors and operating as an open-ended structure with monthly inflows and outflows, delivering 19–20% annual returns in 2023 and 2024^{3 4}.

In Asia Pacific markets where liquidity and yield are key, such as Singapore and Hong Kong, evergreen funds align well with regulatory trends that are increasingly geared towards enabling wider retail participation in private markets.

Additionally, evergreen funds accommodate ongoing institutional investments even after launch, effectively reducing liquidity risk and delaying forced exits. This makes them particularly suitable for managing assets such as aged real estate or late-stage private equity holdings.

To harness the full potential of evergreen funds, asset managers, investors, regulators and professional advisers must work together effectively, focusing on several key areas. Within this collaborative dynamic, professional advisers offer valuable industry expertise and insights that guide decision-making and enhance operational efficiency.

• Enhancing scalability: To manage ongoing subscriptions and redemptions effectively, fund managers need robust systems, sound risk controls and the capacity to balance liquidity with long-term investment goals.
• Advancing regulatory transparency: Establishing clear liquidity terms and transparent risk disclosures is crucial for the success of evergreen funds. Markets like Singapore are actively refining frameworks to support the evolution of private-market access.
• Deepening investor understanding: To maximise full benefits, investors must be aware of liquidity windows, fee structures and redemption mechanics. Fund managers and industry stakeholders must clearly communicate these elements to foster trust and confidence.

As we enter a new era of investing—driven by growing demand for access, flexibility and investor-centric solutions—evergreen funds are gaining momentum as a financial structure well-suited to the evolving needs of Asia Pacific investors. Fund managers, professional advisers and regulators must collaborate more closely to ensure these funds effectively enhance portfolios and meet the broader goals of wealth management, supporting accessible and informed investing for the future.

References
_{¹ 2025 market overview: Evergreen funds and private wealth, Hamilton Lane
² Hamilton Lane launches first Asia-focused evergreen fund, Citywire, 2 July 2025
³ PEP Gateway Evergreen (PDS Fund): Product disclosure statement, April 2025
⁴ PEP to broaden access of its Gateway fund beyond the rich, The Australian, 10 March 2025}