What's Happening?
Morningstar and PitchBook have announced the release of a suite of evergreen private market fund indexes, designed to benchmark and track the performance of nontraded, semi-liquid funds. Scheduled for release in the first
quarter of 2026, the Morningstar PitchBook US Evergreen Fund Indexes will combine private assets with regular liquidity and periodic net asset value pricing. The initiative follows Morningstar's recent expansion of its fund classification system, aiming to provide investors with clearer peer comparisons and support due diligence as private and public markets converge.
Why It's Important?
The launch of these indexes is crucial for investors seeking transparency and comparability in the rapidly growing evergreen fund market. With U.S. evergreen funds holding approximately $450 billion in net assets as of mid-2025, the new tools will facilitate better performance comparisons and due diligence. This development could lead to increased investor confidence and participation in private markets, influencing asset allocation strategies and potentially driving growth in the sector.
What's Next?
The indexes are set to be released in the first quarter of 2026, providing new benchmarks for evaluating evergreen funds. As the market for these funds expands, stakeholders such as fund managers, investors, and financial advisors may need to adapt their strategies to incorporate these benchmarks. The initiative may also prompt further innovation in index development and investment analytics, potentially influencing regulatory discussions around private market investments.
Beyond the Headlines
The introduction of these indexes could have broader implications for the investment industry, including ethical considerations around transparency and investor protection. As private markets become more accessible, there may be increased scrutiny on the fiduciary responsibilities of fund managers and advisors. Additionally, the integration of data and analytics in investment decision-making could drive long-term shifts in how portfolios are constructed and managed.
