Evergreen Investment Funds:

​

“Evergreen” has also come to refer to the structure of some hedge funds, private equity funds, or venture capital funds. Traditionally, investments in such funds offered investors very little flexibility. One’s investment was tied up in what is known as a closed-ended fund for several years. However, in recent years, many private equity investment firms have begun to offer their clients open-ended funds that offer greater flexibility to investors.

Such funds are set up so that investors have the option to cash out or re-allocate their investment funds periodically, even though the investment firm is still maintaining investments in the fund’s portfolio companies.

Evergreen funds also offer increased flexibility to the investment firms, as they can continue to raise investment capital for the fund on an ongoing basis. These funds exist as ongoing investment enterprises rather than having a specified end date.