Why We Use the Evergreen Model:
A Focus on "Total Return"
For decades, accessing private markets meant using Drawdown Funds. These were designed for large institutions with teams dedicated to managing complex "Capital Calls" and 10-year lockups.
At Treeview Capital, we believe individual investors deserve a more efficient model. That’s why we focus on Evergreen Funds.
How Drawdown Funds Work
In a traditional drawdown fund, your money doesn’t go to work all at once. You might commit $50,000, but the manager only "calls" a fraction of that each year as they find new deals.
- The "Cash Drag": While you wait for those calls, your remaining cash sits in a low-interest bank account, diluting your total return.
- The "J-Curve": You often pay full management fees on your entire commitment from day one, even though only a fraction of your money is actually invested. This leads to the "J-Curve"—where your account value often dips in the first few years.
- The "Tax Extension" Trap: Most drawdown funds issue K-1 forms that often don't arrive until late summer or September. This may require investors to file tax extensions and pay higher accounting fees every year.
Courtesy of Frankin Templeton: https://www.alternativesbyft.com
How Evergreen Funds Work
Evergreen funds are built for the modern, digital investor. They eliminate the "waiting room" and focus on immediate compounding.
- Exposure to an Existing Portfolio: When you invest through Treeview Capital, your capital is immediately deployed into a mature, diversified portfolio of private market assets. There are no capital calls to wait for.
- Automatic Reinvestment: In traditional funds, when an underlying asset is sold or a loan is repaid, the cash is sent back to you, and you have to figure out where to reinvest it. In an Evergreen fund, those profits are automatically recycled into new institutional opportunities, keeping the "eighth wonder of the world" (compounding) working for you 24/7.
- Simplified Tax Reporting: Unlike traditional private equity, Evergreen funds are designed to generate standard 1099 forms. These are consolidated directly at Charles Schwab, allowing you to file on time without the wait for K-1s.
- Institutional Quality, Modern Liquidity: From December 31, 2009 through June 30, 2025, the Cliffwater Evergreen Private Equity Index returned 11.79% annualized, compared with 9.58% for the MSCI ACWI Index. These are historical index results for the specified period, not the performance of Treeview clients or any particular fund. Results varied among the funds represented in the index. Certain evergreen funds conduct periodic repurchase or tender offers, often quarterly. These offers are limited, are not guaranteed, and may be suspended or prorated. Investors should be prepared to hold these investments for an extended period.
Source: Cliffwater, Evergreen Private Equity for the Long Run, September 2025. CEPEI seeks to measure the net-of-fee performance of qualifying evergreen private-equity funds. The index was introduced in 2025 and includes historical results calculated for periods before its launch. Index results do not represent Treeview Capital client performance or any particular fund, and investors cannot invest directly in an index. Past performance does not guarantee future results. Individual fund results may differ materially.
The Evolution of Private Markets: Traditional vs. Evergreen
Traditional "Drawdown" Funds
Manual "Capital Calls" & paperwork
Fully Automated via Schwab
Cash is returned to you (Cash Drag)
Profits are reinvested to compound
You wait years for the first deal
You buy into a mature, active portfolio
Typically locked for 10–12 years
Periodic, limited repurchase or tender offers
Complex K-1s
(Often requires filing tax extensions)
Simplified 1099s
(Consolidated at Schwab)
Structural Differences to Consider
We choose the Evergreen model because it prioritizes Time in the Market over the friction of timing capital calls.
By removing administrative complexity and eliminating the drag of idle cash, we ensure that 100% of your capital is working toward your long-term goals the moment you click "Get Started".
