U.S. Evergreen Funds Reach $607 Billion Despite Redemptions by March 2026

1 articles · Updated · Wealth Management · Jul 9

$607 billion in assets across 567 U.S. evergreen funds by March 31 marked growth from $590.8 billion and 552 funds in 2025, as net inflows and positive returns offset heavier redemption requests.
Private credit still dominated the market: direct lending held $236.5 billion, alternative credit $55.0 billion, and business development companies remained the largest structure at $196.9 billion.
$16.3 billion in net flows went to private-equity interval and tender-offer funds over the 12 months through March 2026, while alternative credit drew $12.3 billion, direct lending $6.3 billion, and real estate was the only segment in outflow at $300 million.
1.6% was the Morningstar PitchBook U.S. Evergreen Fund Index return through April, down from 7.4% in 2025 as direct-lending weakness dragged performance; infrastructure led 2026 returns at 5.4%, versus 0.9% for direct lending.
Morningstar PitchBook said the redemption spike was not unusual for semiliquid funds with 5% quarterly limits, warning that retail-heavy strategies should expect periodic liquidity crunches and that manager selection remains critical given wide return dispersion.