Alternative Views with Goldman Sachs’s Kyle Kniffen
In Alternative Views, Private Equity Wire® goes behind closed doors with those in the know to get the latest on private markets. In this episode we discuss evergreen funds with Kyle Kniffen, global head of alternatives, third party wealth, at Goldman Sachs.
In this episode of Alternative Views, Private Equity Wire® sits down with Kyle Kniffen, the global head of alternatives and third party wealth at Goldman Sachs. They delve into the details of evergreen funds, a type of private market investment that has seen a surge in redemptions this year. Goldman Sachs has managed to avoid this trend, narrowly missing a cap in Q1 at just under 5% of shares outstanding, and only experiencing a more comfortable 3.24% in Q2.
The conversation kicks off by exploring the drivers of demand for evergreens, with Kniffen explaining that client-led demand is a significant factor. He then discusses whether retail investors need semi-liquids to access private markets, a question that leads to a broader discussion about the role of retail investors in the private market space.
Kniffen also shares insights into the interest from institutional investors in evergreen funds. Despite the surge in redemptions, Goldman Sachs has managed to stay ahead of the curve, which he attributes to a strategic approach to the challenges of bringing retail investors into the fold. The firm is actively on the offensive in private credit, aiming to capitalize on the opportunities presented by this market segment.
The discussion then turns to the specifics of constructing a credit evergreen fund, including how the firm keeps cash on hand to meet liquidity needs. They also touch on the trend towards more frequent valuations and its feasibility, providing a comprehensive look at the inner workings of evergreen funds at Goldman Sachs.
Written by urgent.news from Private Equity Wire's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
