Why large evergreen funds might be the losers in VC

Fairway Capital Management, a venture capital and growth equity firm founded in 2020, is optimistic about the market for evergreen funds, believing size may be a weakness for some asset classes. Established by former executives from Adams Street Partners, the Chicago-based firm launched its evergreen fund of funds at the end of 2021, aiming to provide retail investors access to private market opportunities typically reserved for institutional investors.

As of March 2026, the fund held approximately $26.3 million in net assets. Fairway's success is attributed to its focus on selecting top-performing venture capital managers, given the wide performance gap between top and bottom quartile funds in venture capital. Even large deals may not always find their way into evergreen vehicles, as larger firms must split investments between institutional funds and separately managed accounts.

Fairway's model is tested as it expands into secondary market investments, allocating 20% to 30% of its portfolio to secondary deals, up from a single continuation fund investment.