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The case for private equity is not a hard one to make. Its returns were consistently ranked among the highest compared with all other asset classes.

The challenge is implementation. Put plainly, PE funds are difficult for individual investors to access. There are a number of reasons for this.

Firstly, most PE funds target institutional investors who deal with far larger sums of capital. The minimum investment required by most funds is, therefore, often a seven-figure sum (e.g. $5 million).

Furthermore, to avoid concentrating risk in a single fund, most PE investors spread their capital across 10 or even 20 different funds for maximum diversification. Even assuming a modest investment of $2.5 million per fund, this equates to $25-50 million of total committed capital.

Not only this, but the terms of PE investments typically lock up investor capital for the duration of the fund’s life (10-12 years).

It is therefore understandable that private equity remains out of reach for non-institutional investors, who cannot afford this level and duration of capital commitment.

This limited access is a genuine problem. 99% of companies are privately held, and so there are many more opportunities in the private markets than in the public markets. What has been lacking until recently is a way to gather and deploy the capital of thousands of individual investors to make the most of the opportunities.

This is where evergreen funds enter the picture. As the name suggests, such funds do not have a fixed lifecycle like typical “drawdown” funds (raise capital, deploy capital, return capital).

Investors are able to add and withdraw funds with greater freedom (i.e., without the decade-long lock-up period). Perhaps more importantly, evergreen funds can offer far lower entry thresholds, in some cases as low as $25,000, well within the reach of the typical affluent investor.

Evergreen funds that act as ‘multi-managers’ also provide access to top-tier traditional PE funds that might otherwise be out of reach to individuals. This is important, as performance between different funds varies considerably, and securing access to a top-quartile PE fund could deliver as much as 14% extra annual return in comparison to a bottom-quartile fund.

At this point, it would be right to ask if this is not all too good to be true, surely, this higher liquidity must come at a cost? And surely the high minimums at traditional firms are in place for a reason?

Both observations are correct up to a point.

It is true that there is a cost to the higher liquidity. In evergreen funds, part of the invested capital is kept in a so-called ‘liquidity sleeve’, to ensure that funds are available for investors who wish to withdraw. This liquid portion of the funds is lower-earning, which does have an impact on returns.

It is also true that evergreen funds are more regulated and have unique operational complexities involved in running them (particularly ensuring that inflows and outflows do not disrupt the workings of the fund), and this complexity naturally translates into a higher cost for the investor.

However, the above is offset by two important factors.

One, the flexibility of the evergreen model allows diversification by sector, manager, and geography, meaning that the overall risk of the investment is lower.

. This contrasts with the ‘drawdown’ model, where most of the capital remains essentially idle for much of the fund’s life. The contrast is shown in the chart below, the blue portion denoting ‘actively deployed capital’ - in other words, genuine “private equity”.

The slow start inherent in traditional drawdown PE is behind the so-called ‘J-curve’ phenomenon, where returns can be low or even negative in the initial years of a fund’s life. This is avoided in the evergreen model.

 shows that an evergreen PE strategy can equal or exceed that of a traditional, drawdown-based strategy.

In addition to potentially higher returns, the benefit for the individual investor is, as noted, one of initial access and ongoing liquidity, neither of which the typical model can offer.

This article has been a very brief precis of the case for evergreen funds. They are not a miracle “cure-all” solution, but do represent something genuinely new and useful, insofar as they broaden the universe of PE for both investors and firms looking to raise capital.

Data from Preqin shows that the number of global evergreen funds doubled to more than 500 in the years between 2018 and 2023, accounting for more than $350 billion of capital.

 The fact that even institutional investors are interested in it as a solution underscores its legitimacy, not only as an access-widener, but as a smart approach to gaining private markets exposure.

We believe it is a space worth keeping an eye on in the future.

Democratizing Private Equity with Evergreen Funds

The Limitations of the Traditional 60/40 Portfolio

The 60/40 portfolio, 60% in stocks for growth and 40% in bonds for income and stability, has long been a standard approach to retirement investing. Its strength came from the assumption that when one asset class declined, the other would hold steady or rise, providing a counterbalance and helping stabilize overall performance.

However, this relationship between stocks and bonds has weakened. In recent years, stocks and bonds have moved in tandem during periods of inflation and monetary tightening, exposing portfolios to losses across both components. Central banks, including the U.S. Federal Reserve, have responded to persistent inflation with aggressive interest rate hikes, putting pressure on both equity valuations and bond prices. Meanwhile, bond yields have struggled to outpace inflation, diminishing their role as a source of real income for retirees.

Rethinking 60/40: Strategies for a Changing Market

," structural shifts in the global economy are challenging the effectiveness of traditional diversification. In response, more investors are turning to private markets to find new sources of stability, income, and long-term growth.

Private Markets: Strategic Asset Classes for Retirement Portfolios

Private markets are reshaping how investors approach retirement planning. Asset classes like private credit, real estate, private equity, and infrastructure can offer income that’s more consistent, growth that’s more resilient, and diversification that traditional portfolios increasingly lack. These investments are now a vital part of building resilient, forward-looking portfolios.

 has become a strong alternative to public bonds, especially during inflationary periods or rising interest rates. These strategies involve lending directly to companies, often at higher yields than traditional fixed income. Cambridge Associates reports that private credit has historically delivered net annual returns in the range of 8% to 10%,

 while Deutsche Bank anticipates long-term returns to average above 8.5% over the next decade

 adds steady income and growth through rental cash flow and long-term appreciation. Unlike listed real estate investments, private holdings are less affected by daily market swings and tend to perform better during inflation. According to Brookfield Oaktree, high-quality private real estate typically generates annual returns between 6% and 8%,

 with recent data from the NCREIF ODCE Index reporting approximately 5.2% annually over the past decade

 contributes to retirement planning by driving capital appreciation over long horizons. These investments support companies during phases of growth, transformation, or strategic transition, capturing value that public investors may not access. Bain & Company’s Global Private Equity Report 2024 shows that U.S. buyout funds have outperformed public markets by 4 to 6 percentage points per year on average, even after fees, highlighting their long-term performance edge.

 adds stability to retirement portfolios through essential assets like transport, energy, and digital networks. These investments often generate dependable, inflation-linked cash flows under long-term contracts. Cohen & Steers highlights that core private infrastructure assets typically provide durable income with lower volatility than equities, making them an attractive choice for income-seeking investors preparing for retirement

Together, these private market asset classes can bring resilience, income, and diversification to retirement portfolios, providing investors with tools to navigate shifting market conditions with greater confidence.

Why Private Markets Are Especially Relevant Today

Private markets stand out not just for their income and growth potential, but for how differently they behave compared to public markets. Rather than reacting to daily news or market sentiment, their performance is tied to long-term fundamentals, a key advantage when short-term volatility dominates headlines.

This matters when public markets are volatile, with prices shifting on short-term headlines or changing interest rate expectations. In contrast, private market valuations are updated less frequently, typically quarterly, and are based on actual business performance rather than daily speculation. This time horizon allows investors to stay focused on outcomes, not noise.

BlackRock CEO Larry Fink underscored this shift in his 2025 annual letter,

 noting that the traditional 60/40 portfolio no longer reflects the demands of today’s environment. He proposed a more modern approach, allocating 20% of a portfolio to private assets like private credit, real estate, and infrastructure, to capture returns that are less correlated with public markets. Many large institutions have already moved in this direction, reshaping their portfolios to include more private market exposure in pursuit of resilience and long-term value.

Private investments are often long-term by nature. They may require several years to reach full maturity or return capital. However, this is also their strength. Because investors are rewarded for committing their capital over time, they can benefit from the "illiquidity premium," which boosts long-term returns.

The earlier one builds exposure to private markets, the greater the potential to benefit from compounding, distributions, and long-term value creation.

GCC Investors: Opportunities Beyond Local Markets

Investors in the Gulf region face unique challenges. Portfolios often have high exposure to local equities, real estate, or U.S. dollar-linked assets. While these can provide familiarity and liquidity, they also expose investors to concentration risk and limited geographic diversification.

Private markets offer a path to global diversification. Through private equity, real estate, infrastructure, and private credit, GCC investors can access international opportunities in developed and emerging markets. These investments often involve different sectors, currencies, and risk-return profiles, broadening the foundation of long-term financial resilience.

In a world where traditional investment strategies are no longer sufficient, private markets provide a critical advantage in retirement planning. They offer higher return potential, more reliable income, and diversification that helps protect portfolios from volatility and shifting macro conditions.

At The Family Office, we bring more than 20 years of experience helping investors navigate global markets across economic cycles. Our team provides access to institutional-quality private market opportunities and builds tailored portfolios aligned with your goals, risk appetite, and time horizon.

To help you stay on track, you can now try our 

 to estimate your projected retirement income and understand how close you are to your retirement goals.

Navigating Uncertainty: How Private Markets Can Strengthen Your Retirement Plan

The minutes of the last Fed meeting, released earlier this month, clearly show a division in opinion among Fed officials.

 (who were appointed by President Donald Trump) have publicly expressed the view that any inflationary effects from tariffs will be temporary only. If this is the case, rate cuts can be expected in the near future.

The majority of officials, however, appear to be concerned that the knock-on effects of the ongoing trade negotiations could be more severe and long-lasting. As the Fed chairman Jerome Powell himself said in the press conference, “Every outside forecaster, and the Fed [itself], is saying that we expect a meaningful amount of inflation to arrive in coming months.”

As always, the Fed insists that its decisions must be forward-looking, while being guided by the emerging data. The data, so far, does not suggest cause for alarm. The question is how informative this backward-looking data is, given the unfolding trade situation.

The Fed’s mandate is to control inflation and support the labor market. Both appear to be in a good position. The unemployment rate, already low by historical standards, moved downward to 4.1% in June, according to the latest figures.

 Core PCE inflation ticked upwards slightly (from 2.6% to 2.7%)

 in the latest reading, although it remains within range of the targeted 2%.

As can be seen from the graph, the last time inflation was at its current level, the Fed began to cut rates, and saw inflation begin to creep back up again. With tariffs added to the picture, it is understandable that the committee might be wary of provoking a similar resurgence.

Those who believe inflation is set to rise point to the fact that tariff effects have been delayed. For example, as a result of firms buying up inventory months in advance (“front-loading”), to avoid higher prices, or temporarily absorbing higher costs to shield consumers from their effects. Some believe that July is when the effects will begin to show in the data.

The June CPI inflation figures, while showing a lower-than-expected increase for core CPI,

 are still higher than in previous months, potentially lending weight to this view, although both sides maintain the data still supports their respective positions.

The trade negotiations themselves have continued on their erratic path, but a pattern is emerging. Both tariffs and deadlines are, in general, provisional rather than permanent - a prelude to the real trade discussions that then follow.

Talks between the US and China culminated in something of a truce on June 10th, with a ‘framework’ put in place in lieu of the original punitive tariff levels. With no other deals in place besides the UK and Vietnam, the original July 9th deadline has been extended to August 1st, as negotiations with other countries continue.

This new deadline is, in Trump’s own words, ‘Firm, but not 100% firm’ - a phrase that accurately summarizes his psychological strategy of controlled chaos, which appears calculated to wear down the resolve of his global negotiating partners. By its nature, such a strategy has no clear end or outcome.

Closer to home, Trump appears to be waging a war of words on Fed Chairman Powell, urging him to lower rates by at least 3% and/or resign immediately.

 Trump officials are also bringing pressure to bear on the embattled governor through other means, including accusations of mismanagement and overspending.

When asked to respond at the June press conference, Powell essentially restated the Federal Reserve’s dual mandate, saying that to him and the committee members, pursuing this mandate is ‘all that matters’.

Whatever one’s opinion of the Fed Chairman’s abilities, this attitude of remaining focused amid extraneous shocks is a lesson for all investors. The greatest enemy of an investment plan is often not the markets themselves, but the emotional response they provoke, and the ability to proceed calmly is therefore half the battle.

Trump Expands Retirement Plans to Include Private Market Investments | Abdulmohsin Al Omran Shares Insights on Bloomberg Asharq

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