Head of Private Equity Solutions Daniel Wilk, CAIA® joined Asset TV for a panel on evergreen funds and private equity secondaries. He addressed the significant recent adoption of perpetually offered funds, how to evaluate them against drawdown vehicles and why funds focused on the U.S. middle market may provide an ideal complement to volatile public markets.
Dan highlighted the need for allocators to seek investments where value creation is the largest attributor to returns, leverage levels are low and sponsors have proven a path to exit and liquidity. He also examined the potential benefits of evergreen funds including simplified operations and reporting, full deployment of capital and low correlation to public markets.
Finally, Dan spoke to how investors can assess the wide dispersion of performance when selecting evergreen PE funds, favoring funds with appropriate suitability and selectivity.