More than 120 evergreen funds were launched in 2025, and 30 so far this year, bringing the total over the past decade to 661, according to Preqin data
Evergreens offer private wealth investors more flexible entry, exit, and redemption opportunities.
A record 123 evergreen funds were launched in 2025, including 49 in private credit and 32 in private equity, Preqin data shows.
ELTIFs are the investment vehicles of choice for Europe-based private wealth investors, according to a Preqin and BlackRock survey.
February 27, 2026 (Preqin News) – The number of evergreen private capital funds has increased rapidly over the last few years to meet growing demand, particularly from private wealth investors.
Momentum has carried into 2026, with 30 evergreen vehicles launched in the first two months of the year. This puts the market on pace to exceed 2025’s record 123 launches, according to Preqin data.
From 2023 to the end of 2025, 337 evergreen private capital funds were launched. That three-year total exceeds the 299 funds launched over the seven years from 2016 to 2022, according to Preqin data.
The pipeline of European Long-Term Investment Funds (ELTIFs) also remains robust, with 40 funds approved by the European Securities and Markets Authority (ESMA) over the past three years yet to be marketed to investors, on top of the 87 ELTIFs marketed in 2025.
With evergreens continuing to attract interest from investors and fund managers, Preqin News takes a look at the data and the drivers.
Private wealth investors look to diversify
The evergreen build-up comes as fund managers further diversify their investor base, tapping private wealth investors, including family offices and HWNIs, as sources of capital.
More than a third of private wealth investors based in Europe have invested in an evergreen fund (37%), while 24% are actively looking for investment opportunities. A further 29% were unsure about investing in these vehicles, and just 9% would not consider them, according to a Preqin and BlackRock survey featured in Preqin's Investor Outlook: European private wealth.
‘Like institutional investors, we see European private wealth investors looking to real assets as an inflation hedge and a way of adding diversification to a portfolio. Inflation has come down in developed markets, but uncertainty remains a factor for investors today,’ Rachel Dabora, Lead Analyst for Private Wealth at Preqin Private Markets Research, said in the report.
Unlike traditional 10–12 year closed-end private capital structures, evergreens offer private wealth investors more flexible entry, exit, and redemption opportunities, while providing exposure to illiquid private market asset classes.
Most (67%) European wealth advisors surveyed by Preqin and BlackRock in September 2025 reported some exposure to private markets. Diversification was the main reason (67%), with private wealth choosing to invest in private equity for the promise of enhanced returns (62%) and to access investment opportunities unavailable in public markets (67%).
The number of evergreen fund launches globally has climbed steadily over the last six years. In 2020, there was a total of 50, including 19 private credit, 14 private equity, and 10 real estate funds. That number increased by 140% to 123 in 2025. Private credit and private equity funds remain the top asset classes, with 49 and 32 funds launched last year, respectively, according to Preqin Pro.
Evergreens grow rapidly
Number of evergreen funds launched per year by asset class, 2016–2026 YTD
Source: Preqin Pro. Data as of February 2026
ELTIF update prompts surge in launches
ELTIFs are the investment vehicles of choice for Europe-based private wealth investors, according to the Preqin and BlackRock survey. A third of the investor base had invested in ELTIFs, with a further 44% saying they would within the next three years. Just 7% said they were unsure, while 16% said evergreens were ‘not a fit’.
An update to the ELTIF framework went live in January 2024. It lowers minimum investments, broadens the definition of eligible assets, and improves redemption features. The ELTIF 2.0 framework prompted a surge in new product launches, with the number of ELTIFs marketed to investors rising from 21 in 2023, to 49 in 2024 and 87 in 2025.
Over a third of respondents to the Preqin and BlackRock survey found the updated framework ‘excellent or acceptable’, with a further 23% saying it needed greater clarity. Better transparency regarding fees, track record, and improved liquidity were areas in which private wealth investors saw potential for further improvements to the ELTIF regime.
ELTIF 2.0 drives fund launches
Number of marketed ELTIF funds per year, by date the marketing of the fund commenced, 2016–2025
Source: European Securities and Markets Authority. Data as of February 2026
Mapping Europe’s private wealth landscape
Europe’s private wealth market presents significant opportunities for private capital managers, though access varies widely across jurisdictions, according to Macfarlanes’ Private Wealth in the UK and Europe report.
The law firm identifies three factors to guide manager strategy when marketing and managing private wealth capital:
Europe’s private wealth market is large but structurally fragmented, driving country-specific distribution and product design.
There is considerable government support for broadening access to private markets.
Managers should adopt either highly-targeted or deliberately flexible product strategies.
As regulatory frameworks mature, distribution channels adapt, and investor education improves, evergreen private capital vehicles are positioned to capture a growing share of what Macfarlanes’ estimates is a €9.1tn addressable private wealth market across Europe's four largest economies: France (€2.8tn), the UK (€2.5tn), Germany (€2.4tn), and Italy (€1.4tn).
The opinions and facts included within the above do not constitute investment advice. Professional advice should be sought before making any investment or other decisions. Preqin providing the information in this content accepts no liability for any decisions taken in relation to the above.