In Alternative Views, Private Equity Wire® goes behind closed doors with those in the know to get the latest on private markets. In this episode we discuss evergreen funds with Kyle Kniffen, global head of alternatives, third party wealth, at Goldman Sachs.
The firm has so far been able to avoid the surge in redemptions which have hit other credit evergreen funds this year, narrowly avoiding a cap in Q1 at just under 5% of shares outstanding, followed by a more comfortable 3.24% in Q2.
We cover the drivers of demand for evergreens (0:47) and if this has been client-led (1:57); whether retail needs semi-liquids to access private markets (2:42); institutional interest in evergreens (3:26); why Goldman Sachs has avoided the redemptions spike (4:42) and the challenges of bringing in retail (6:55); why the firm is on the offensive in private credit (7:51); how to construct a credit evergreen fund (9:15); keeping cash on hand to meet liquidity needs (10:43); the trend towards more frequent valuations (11:30) and their feasibility (13:41).