Podcast: Partners Group on the science of running an evergreen fund

In this podcast, Markus Pimpl, Co-Head of Private Wealth Europe at Partners Group, takes us inside one of the industry's most remarkable journeys, from launching the first private markets evergreen fund more than 20 years ago to managing a platform where wealth investors now represent almost a third of its $152bn in total AUM. 

Founded in 1996, Partners Group has grown into a global investment firm managing assets for institutional investors, sovereign wealth funds, family offices and private individuals. The firm was the first to launch a private markets evergreen structure after realising that its smaller institutional clients struggled with the operational complexities of closed-end funds. Capital calls, distributions, maintaining target allocation levels, all created friction that an Evergreen vehicle could eliminate. 

These evergreens weren’t built with wealth distribution in mind. They were designed to solve genuine portfolio management challenges which wealth investors faced just as much as smaller institutions. But over two decades, the Partners Group evergreen platform has grown to include a dedicated portfolio management team and operational sophistication. 

Variety and Access 

In the last year, Partners Group has launched seven new evergreen funds, spanning next-gen infrastructure, royalties, and the first ELTIF 2.0 evergreen. These funds, as well as the firms’ other evergreen offerings, are listed on traditional clearing systems in Europe, meaning investors can subscribe as they would to a mutual fund. This access brings challenges, however, and Pimpl goes into detail on how Partners Group has addressed these. 

The Science of Running an Evergreen Fund 

The discussion makes it clear that running an evergreen fund demands an institutional investment engine capable of deploying capital consistently, managing liquidity across market cycles, and delivering proper diversification. Pimpl argues that an effective evergreen product should be focused on direct investments, with primary and secondary fund investments used sparingly, to avoid giving up liquidity management that can arise when closed-end funds call capital at inopportune moments. 

Partners Group emphasises that its evergreen products provide flexible access to illiquid strategies. Pimpl argues that using the term ‘semi-liquid’ risks investors misunderstanding the nature of the investments and expecting an unrealistic level of liquidity.  

With wealth investors now accessing strategies historically reserved for institutions, education becomes paramount. Partners Group has invested a lot of time and effort in supporting its private wealth partners to understand the holding period requirements, recognise the illiquidity inherent in private strategies, and prepare for market cycles. The compounding returns that private markets evergreens offer are real, but only for patient capital. 

The Road Ahead 

For anyone navigating the evergreen landscape, whether allocator, advisor, or GP, this conversation delivers essential insights. Pimpl doesn't just explain how Partners Group built their platform over 20 years; he reveals what separates sustainable evergreen programs from those destined to struggle when markets inevitably turn.