Dear Fundscouter users,
It has been quite a year for private markets. If I had to sum up the past year in private equity with one word, it’d be adjustment.
We all came into the year knowing things wouldn’t be business as usual. Interest rates stayed higher for longer, exits took even more patience, and LP conversations became more honest; sometimes uncomfortably so. Honestly, that may not have been a bad thing.
One thing that really stood out to me was how much the conversation shifted from “what’s hot” to “what actually works.” At FundScouter, we’ve written a lot about managers going back to basics: operational value creation, realistic underwriting, and alignment. Those weren’t just article themes; they were real conversations I had with GPs. These were also the topics we were digging into when I was still working for a fairly large SFO, and I’ve seen the shift through the eyes of an LP.
And then there’s the rise of evergreen structures.
Evergreens aren’t new, but this year felt different. We saw a lot of serious managers bringing them to market, not as a side experiment, but positioned as a core part of their strategy. And some of them grew exponentially within months. Of course, institutional markets have been tougher lately. But also, liquidity flexibility matters more now. LPs want smoother pacing, and GPs want longer-term capital to actually execute value creation; not just rush to the next fundraise.
We’ve covered this shift on FundScouter; from how evergreen funds are structured, to what LPs should actually watch out for. What’s clear is that evergreens are moving from “alternative” to “mainstream consideration.”
What gives me optimism is this: despite all the noise, private equity is maturing. The industry feels a bit more self-aware, a bit more disciplined, and a lot more focused on building real businesses.
At FundScouter, our goal hasn’t changed: cut through the hype, and help investors understand what they’re actually backing.
If the past year taught us anything, it’s that clarity beats optimism. And that’s a good place to build from!!
Mark Liam
FundScouter