Koen Ronda, head of private markets at IBS Capital Management, labeled evergreen redemptions as 'weapons of mass destruction' during PEI Group’s Infrastructure Investor Global Summit in Berlin. His blunt critique highlights growing concerns among limited partners (LPs) about the flood of capital into private markets via semi-liquid open-ended funds. While some view evergreens as a lifeline for long-term investments, Ronda argues they create liquidity traps, leaving LPs stranded with illiquid assets.

LPs increasingly demand transparency and flexibility from emerging managers in 2026. With private equity markets maturing, investors are pushing for clearer exit strategies and shorter fund lifespans. This shift reflects a broader trend: LPs prioritizing capital preservation over aggressive growth amid macroeconomic uncertainty. IBS Capital reports a 32% rise in requests for hybrid fund structures blending private markets exposure with redemption options.

UK LPs face unique challenges, particularly around climate change disclosures. Regulatory ambiguity and inconsistent ESG reporting frameworks have left many confused about assessing green investments. At the summit, Institutional Investors Association data revealed 68% of UK pension funds struggle to benchmark climate risk across portfolios. This lack of clarity risks misallocating capital in critical sectors like renewable energy.

The summit concluded with a stark warning: market participants must align evergreen strategies with investor realities or face systemic instability. As one attendee noted, 'The tail wagging the dog—retail inflows dictating fund structures—needs urgent correction.' IBS Capital and PEI Group urged collaboration between managers and LPs to redesign fund architectures, ensuring sustainability without sacrificing liquidity.