Evergreen Evolution: Asia’s Shift to Flexible Funds and Royalty Investments

Asia’s alternative investment landscape is quietly transforming. As institutional and private wealth clients seek more adaptable, income-generating strategies, evergreen fund structures are emerging as a powerful solution — especially when paired with innovative asset classes like royalties.

I recently sat down with Vincent Ng, managing director and co-head of Asia at Partners Group, to discuss royalty investments as an emerging, non-traditional asset class offering steady income in a volatile macroeconomic environment and its impact on the future of private markets in Asia. Below are some highlights from our discussion.

The rise of evergreen funds in Asia

The growth of evergreen funds in Asia reflects rising regional wealth, increased demand for semi-liquid investment vehicles and a shift toward long-term capital deployment. Institutional investors, such as sovereign wealth funds, insurers and endowments, value the ability to recycle capital and maintain portfolio flexibility. Meanwhile, private wealth clients, who are often holding substantial cash reserves, are drawn to the immediate exposure that evergreen funds offer without the friction of capital calls.

A growing regional “home bias” is also influencing allocation decisions. Investors are increasingly targeting high-growth markets such as Southeast Asia and India, where evergreen structures help mitigate foreign exchange risk. As a result, evergreen allocations are expected to reach 10 to 15 percent of portfolios, signaling a growing appetite for adaptable, resilient investment strategies in an uncertain macro environment.

Operational complexity and strategic discipline

Unlike closed-end funds, evergreen structures require continuous capital deployment and conservative fundraising to avoid overcommitment during market peaks. Operationally, frequent valuations and redemption management demand robust cash flow planning, compliance and reporting, especially during periods of market stress.

The diverse investor base, spanning patient institutions and liquidity-sensitive private clients, necessitates transparency and agility. Technology plays a critical role here, enabling scalable operations and real-time responsiveness.

Technology as a strategic enabler

Technology adoption is critical to managing the complexity of evergreen fund structures. Partners Group is actively exploring artificial intelligence (AI) and other digital solutions to enhance operational efficiency and risk management. These advancements enable scalable operations, real-time responsiveness and improved investor experience.

Across the fund lifecycle, digital platforms are playing a growing role in streamlining investor onboarding, reporting and transparency. Solutions that integrate fundraising, subscription workflows and investor communications — such as those offered by leading providers in the space — are helping managers meet the evolving expectations of both institutional and private wealth clients.

Royalties: a resilient, uncorrelated asset class

Royalties are gaining traction as a compelling alternative asset class. In today’s macro environment, royalty assets offer resilient, uncorrelated cash flows and access to high-quality intellectual property. They provide diversification and stable income, making them particularly attractive to investors seeking downside protection and inflation-hedged returns.

Integrating royalties into evergreen structures

Royalties’ long-dated, revenue-linked cash flows support a hold-for-life strategy, avoiding forced sales and preserving portfolio integrity. Predictable income streams enable regular liquidity for investors without eroding principal, offering a stability-enhancing solution that complements traditional private market assets.

Looking ahead: A new era for Asia’s alternatives

The convergence of evergreen fund structures and royalty investments is reshaping Asia’s alternative investment landscape. Technology-driven transparency and AI-powered analytics will accelerate investor trust and operational efficiency. As royalties — now a USD two trillion global market — expand across sectors, Asian investors will gain access to diversified, low-volatility income assets previously limited to niche markets.

These innovations are ushering in a new era in Asia’s private markets — one defined by flexible structures, diversified structures and resilient customer confidence.

To learn how 280+ global investors plan to allocate capital in the year ahead — and what that could mean for alternative investments — download the SS&C Intralinks 2026 LP Survey.