Wealth clients prefer 8-10% evergreen funds over 11-14% drawdown lockups
Kristin Kolurgis-Roland · Kristin Kallergis Rowland – Alts at J.P. Morgan's Private Bank (Private Wealth 4, EP.447) · May 26, 2025 · at 42:47
Kristin Kallergis Rowland of J.P. Morgan Wealth Management explains the declining retail appetite for mid-performing drawdown funds versus evergreen structures.
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“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 on time. If you're in that zone, for individuals and taxpayers, there's not a lot of bid for those type of portfolios, unless it's super diversifying or very niche-oriented, because many people would rather accept eight to 10% returns Go into these private market evergreen portfolios and compound that money and not have to make new investment decisions every two to three years to recommit to a fund manager and not know when you're going to call capital or distribute capital.”
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