drawdown funds

also referred to as: drawdown fund

4 statements across 3 episodes · 2 bullish · 1 bearish · 3 people on the record · first statement May 5, 2025 by Michael Sidgmore · across every show →

Everything said about drawdown funds, oldest first

May 5, 2025 positive
Assertion Supported
Drawdown PE requires high-teens returns to match evergreen MOIC
“If you're in a drawdown fund, you have to generate high teens returns to get the same multiple uninvested capital over a ten-year period as you would if you're getting low teens IRRs in an evergreen structure.”
Michael Sidgmore May 5, 2025 ▶ 43:43 Michael Sidgmore – Alternatives Go Mainstream (Private Wealth 1, EP.443)
May 26, 2025 positive
Insight
Wealth clients prefer 8-10% evergreen funds over 11-14% drawdown lockups
“For managers that are in the, what I call, no man's land, And this is what I mean by that. Your returns are somewhere between 11 to 14% net returns is what you've delivered, and you are looking to lock up your capital for 10 to 15 years, and no one ever ends o…”
Kristin Kolurgis-Roland May 26, 2025 ▶ 42:47 Kristin Kallergis Rowland – Alts at J.P. Morgan's Private Bank (Private Wealth 4, EP.447)
May 26, 2025 neutral
Disclosure
J.P. Morgan prefers evergreen funds for credit but drawdowns for venture
“So in places like direct lending, core plus real estate, and even value-add a little bit, and in infrastructure investment, the core core plus space, we prefer a lot of the evergreen strategies. And then in the more directional private equity, definitely growt…”
Kristin Kolurgis-Roland May 26, 2025 ▶ 45:10 Kristin Kallergis Rowland – Alts at J.P. Morgan's Private Bank (Private Wealth 4, EP.447)
Mar 30, 2026 bearish
Opinion
Non-traded BDCs recreate the structural asset-liability mismatches of the past
“Maybe we do a non-traded BDC, which was now up to 2018. That's where I was like, well, this is the original asset liability mismatch that you tried to cure by doing a drawdown fund because You might have all the investors looking for the exit, even though it's…”
Kieran Goodwin Mar 30, 2026 ▶ 23:11 Kieran Goodwin – Private Credit Concerns (EP.494)
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