In this latest podcast episode, Jessica Sellam, Managing Director, Head of Private Markets Group, Rothschild & Co., discusses the historical barriers to investing in private markets and how evergreen fund structures are removing them, bringing greater transparency to what has traditionally been an opaque marketplace.
During the podcast, Jessica presents Rothschild & CO’s view on the opportunity that is emerging to build democratised access for its private wealth clients and how technology, regulatory changes, and investor appetite are driving the adoption rate more broadly.
Two key areas of discussion emerged during the podcast:
1. Reassessing traditional manager selection criteria
2. Navigating the practical challenges of implementation
Reassessing Manager Selection Criteria
While track record remains a cornerstone of manager selection, Jessica highlighted a clear shift towards incorporating innovation into evaluation frameworks. This includes favouring managers with differentiated strategies or specialised expertise in emerging areas such as technology, sustainability, and digital assets. Scalability is also becoming increasingly important. Managers are expected to offer structures that broaden access—such as feeder funds or lower minimum vehicles—without compromising performance.
Alongside this, operational excellence has moved up the agenda. In a more democratised private markets environment, private banks are placing greater emphasis on strong compliance infrastructure, institutional-grade reporting, and transparent fee models.
"It’s most likely we will focus on single GP strategies. The trigger will probably be, at some point, are we able to deliver the same quality of portfolio with evergreen structures compared to what we can do with closed-ended funds?” Jessica Sellam.
Navigating Implementation Challenges
The discussion also focused on the practical challenges of adapting manager selection to this evolving landscape. Fee structures remain a key sticking point, with private banks seeking more flexible pricing that aligns with lower ticket sizes while maintaining proper incentive alignment.
Liquidity management presents a further complexity. There is growing demand for structures that incorporate liquidity features, such as periodic redemption windows, without eroding the illiquidity premium that underpins private market returns.
James is an experienced financial journalist and editor with over 20 years experience covering private markets and alternatives. He is host of the Clockwork CIO podcast.
