What's Happening?
Morningstar and Pitchbook have announced the launch of a suite of evergreen private market fund indexes designed to benchmark and track the performance of nontraded, semi-liquid funds. The Morningstar PitchBook
US Evergreen Fund Indexes will combine private assets with regular liquidity and periodic net asset value pricing. These indexes will cover private equity, private credit, real estate, infrastructure, and multi-asset strategies. Scheduled for release in the first quarter of 2026, the initiative aims to bring greater transparency, consistency, and comparability to private markets, addressing the need for essential tools to conduct due diligence and compare performance.
Why It's Important?
The introduction of these indexes is significant as it addresses the growing demand for transparency in private markets, which have seen rapid growth. By providing performance comparisons for unlisted, semi-liquid investment vehicles, the indexes will enhance investors' ability to make informed decisions. This initiative aligns with broader efforts to integrate data, analytics, and advisory tools across asset classes, supporting portfolio construction and risk management. As private and public markets continue to converge, the indexes will play a crucial role in facilitating investment strategies and regulatory compliance.
What's Next?
The release of the Morningstar PitchBook US Evergreen Fund Indexes is expected to occur in the first quarter of 2026. Investors and financial advisors will likely utilize these tools to improve due diligence processes and investment strategies. The federal government may provide further guidance on alternative assets and fiduciary processes, influencing the adoption and integration of these indexes in defined contribution plans. Morningstar and Pitchbook will continue to expand their fund classification systems, potentially introducing new categories to accommodate evolving market dynamics.
Beyond the Headlines
The development of these indexes reflects a broader trend towards greater transparency and accountability in financial markets. As investors seek to diversify portfolios and access private markets, the need for reliable benchmarks and performance metrics becomes increasingly important. This initiative may also influence regulatory frameworks and industry standards, promoting ethical investment practices and long-term financial stability.
