Institutional investors are beginning to allocate capital to the evergreen private market funds that Blackstone and KKR originally built for wealthy individuals, according to the Financial Times. Evergreen funds allow investors to access capital at set intervals rather than locking it up for a decade-long private equity fund life. Blackstone's wealth business has seen institutions begin allocating to its evergreen products, though they currently make up only a small proportion of the capital raised, said Joan Solotar, who leads that business. KKR has separately raised the share of deals its evergreen K-Series funds can take from a longstanding 7.5% cap to as much as 20% in some cases, including its $8 billion European Fund VI. This institutional adoption could help Blackstone and KKR expand their wealth-management businesses beyond traditional individual investors, though institutional flows remain modest and may weaken if traditional private equity improves its ability to return capital.
Blackstone Group IncInstitutional investors beginning to allocate to Blackstone's evergreen funds expands its wealth business beyond individuals.
Amazon.com Inc
Alphabet Inc Class C
KKR & Co. Inc.KKR raises deal capacity for evergreen K-Series funds and sees institutional adoption, boosting its wealth management.
DoorDash, Inc. Class A Common Stock