Nov. 4 at 4:49 PM
Goldman Sachs executive Marc Nachmann warned that the rapid growth of evergreen funds—vehicles offering more liquidity than traditional private funds—could create “deployment pressure,” pushing managers to invest too quickly and potentially lower returns. These funds, now valued at about
$427 billion and projected to surpass $ 1 trillion within five years, require constant capital deployment, unlike traditional drawdown models.
Nachmann said Goldman avoids setting deployment targets to prevent rushed deals, adding that liquidity in evergreen funds remains limited despite investor perceptions. Analysts caution that the surge of evergreen funds could distort markets, especially in secondaries, where competition has narrowed discounts and squeezed traditional buyers.
$GSBD