Executive Blogs

While offering unique investor benefits, semi-liquid fund administration presents complex operational challenges for asset managers to navigate throughout the investment lifecycle. Semi-liquid funds (also referred to as evergreen funds) offer greater flexibility compared to traditional closed-ended funds. For asset managers, this means increased flexibility to respond to market conditions and manage funds. Retail and institutional investors are increasingly turning to evergreen or semi-liquid fund structures to access private markets while maintaining some liquidity and the ability to redeploy capital. However, these attractive features come with significant operational complexities. Evergreen structures require a tailored administrative approach, utilizing trusted technology in combination with customized services and operational processes. Key Takeaways Semi-liquid funds require nuanced operational oversight Flexible liquidity management is a central component Ongoing subscriptions and redemptions increase complexity Automation supports scalability and investor servicing Services such as equalization and fee modeling require expertise What is a semi-liquid fund? Semi-liquid funds have become an increasingly utilized structure within private markets, requiring specialized operational infrastructure, liquidity management, and investor servicing capabilities. While definitions and structures vary, semi-liquid funds generally have no fixed end date, an ongoing capital strategy, and a defined liquidity buffer and management approach. These funds are neither fully…