Goldman, Evercore Explore Funds That Would Let PE Firms Hold Assets for 15 Years

Goldman Sachs (NYSE:GS) and Evercore are among two of the banks exploring evergreen continuation funds that would allow private equity firms to hold investments for 10 to 15 years or longer, rather than sell them through traditional exit routes.

The bankers at the two firms, along with teams at Jefferies Financial Group, Raymond James Financial, and Lazard Inc., are looking into the use of continuation vehicles with potential investors, Bloomberg reported. 

The firms are also evaluating structures tailored to specific investment groups, with discussions involving several large private equity firms, sources familiar with the matter stated.

The strategy is still in the early stages, Sunaina Sinha Haldea, Raymond James global head of private capital advisory, told Bloomberg, describing the concept as an emerging form of permanent capital. 

Unlike traditional funds that face pressure to sell assets within a set investment period, these vehicles could provide additional uncommitted capital to support portfolio companies’ growth without requiring a near-term exit, she explained.

The use of evergreen continuation funds could raise questions about how managers earn carried interest, or their share of investment profits, and whether investors have sufficient opportunities to withdraw their capital, Bloomberg noted. Investors may also look for stronger revenue growth and greater upside from these vehicles.

"Following a record-setting 2025, the secondary market continued its acceleration in the first half of 2026, generating an estimated $124 billion in transacted volume and a record $260 billion over the trailing twelve months," according to a recent report from Lazard.

"Evergreen (’40 Act) vehicles, open-ended funds without fixed end dates, are a fast-growing channel for private wealth capital in private equity. Today, approximately 40% of secondary investors manage evergreen vehicles, and 40% of those investors have deployed this capital in more than half of the continuation fund deals in which they have invested in 2026 to date," the report added.

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