Wealthy families and affluent investors now have the products, regulatory access, and appetite to build meaningful private markets exposure. What many still lack is the patience to treat a 15 to 20 year asset class as such, and the understanding that the liquidity features built into evergreen funds are an option with a price. Lorenz Brunner, who sits on UBS’s investment committee and oversees its customised mandate business, described a marked shift in how family offices, high net worth, and affluent clients approach allocation.
The growing availability of evergreen fund structures has lowered barriers to entry, but investors must recognize that liquidity comes at a cost and that these vehicles are fundamentally long-term commitments. Misunderstanding the trade-offs between accessibility and performance remains a critical blind spot for many allocators.
Source: PE Insights · Summarized by HeadlinesBriefing