How LPs Are Using Evergreen Funds for Ongoing VC Access

Episode 60 dives into evergreen venture funds — open-ended vehicles that let limited partners maintain continuous exposure to venture capital without the traditional 10-year lockup. Lucas and Luna break down how these funds work, why they've grown from roughly $15 billion in 2020 to over $80 billion today, and what LPs should watch for: valuation smoothing, liquidity terms, and fee structures. They examine the case of a specific evergreen fund from a top-tier firm that targets 12 to 15 percent net IRR, and compare it to traditional closed-end VC funds. Listeners learn how to evaluate evergreen vs. traditional structures for their own portfolio, including the trade-offs between daily liquidity and venture illiquidity premiums. The hosts also discuss regulatory considerations under the 1940 Act and why some institutional LPs are now allocating 10 to 20 percent of their venture sleeve to evergreen vehicles. A must-hear for any limited partner considering a more fluid approach to venture investing. #EvergreenFunds #VentureCapital #LimitedPartners #LucasAndLuna #FexingoBusiness #BusinessPodcast #Finance #Investing #LPStrategy #OpenEndedFunds #VCAllocation #Liquidity #PortfolioConstruction #InstitutionalInvesting #FundStructures #NetIRR #1940Act #AlternativeAssets Keep every episode free: buymeacoffee.com/fexingo