Summary
Investors are showing a growing interest in alternative investments due to a pressing need to diversify their portfolios in terms of allocation and time horizon, while also seeking higher returns. We are now witnessing a trend towards an increased accessibility of private markets, supported by the second version of the European Long-Term Investment Fund (ELTIF) Regulation.
This article offers valuable insights into the evolving landscape of private market investments, particularly through the lens of the ELTIF 2.0 regulation and evergreen funds and highlighting the numerous benefits for investors.
Key takeaways
- The ELTIF 2.0 framework is opening new opportunities to access private markets.
- Evergreen funds offer a variety of benefits to investors.
- Evergreen funds need to adopt various liquidity management strategies to develop a fund liquidity profile that matches the inherent illiquidity of their underlying assets.
- Investors should rely on an asset manager with a rigorous risk management process and proven knowledge and expertise to build robust and diversified portfolios.
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