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| The Daily Pitch |
| PE, VC and M&A |
| Your edge on global private capital markets |
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| Evergreen funds require a different kind of diligence |
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By Hilary Wiek, Principal Analyst, Fund Strategies
Fewer than 20 drawdown funds in history have reached $25 billion, yet a handful of evergreen funds have already grown far larger. Despite being marketed as familiar extensions of private-market strategies, their structures create fundamentally different incentives around fundraising, valuation, and liquidity—ones that can meaningfully alter both manager behavior and investor outcomes.
For those seeking access to private markets through drawdown funds, there are some questions and considerations that should be explored before diving in. Just because you can access a fund or a manager you believe to be a top performer, doesn't mean you should.
Our latest analyst note is meant to help investors in semi-liquid funds and other interested parties consider diligence questions unique to the space. It contains dozens of questions to ask evergreen fund managers, using the same "6 P" framework introduced in earlier research on fund due diligence—covering people, philosophy, process, portfolio construction, performance and pricing. |
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The new note explains how to probe a fund manager on how they intend to manage liquidity, how to determine if the reputation of an investment firm matters to their ability to run a new fund structure, and how to tell whether what you think you are buying is what you are likely to get.
While some are excited to finally have access to private markets, they should go in with their eyes wide open. Large asset managers are even more excited, embracing the opportunity to get even larger. |
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| Join the Crowe ExPErtise Webinar Series: Economic and Tax Updates for 2026 |
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Understanding the economic and tax landscape in early 2026 will be essential for private equity leaders aiming to protect performance and plan for long-term value creation. Join Crowe on Tuesday, Jan. 27, for a view of how current and emerging macroeconomic trends are expected to shape deal flow, operating conditions, and strategic decisions across the portfolio.
Specialists will examine leading economic indicators that could impact capital allocation and cost structures for the private equity industry. Then, they will discuss significant provisions of the One Big Beautiful Bill Act (OBBBA) and how those changes will impact both fund-level entities and portfolio companies.
Register today to gain relevant insights into trends and regulations shaping the investment landscape.
This session is recommended for 1.0 hour of CPE credit. |
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• While AI-developed drugs may be further away than hoped, investors remain excited about the sector. Here are the 10 most active VC investors in AI drug discovery startups. See the list
• The Trump administration has released new dietary guidelines emphasizing protein and healthy fats. Our latest research on consumer packaged foods covers M&A and other trends, including the role of "better-for-you" protein snacks. Read the analyst note
• Europe has welcomed its first unicorn of the year: Drone-maker Harmattan AI raised a $200 million Series B, led by aerospace group Dassault Aviation, pushing the Paris-based startup's valuation to $1.4 billion. Read more
• Available now: Our US Credit Markets Quarterly Wrap provides a comprehensive look at the dynamics of the primary and secondary US leveraged finance markets. Download the report |
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| Why Greenland's future is important to Silicon Valley |
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| (Leon Neal/Getty Images) |
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By Leah Hodgson and Andrew Woodman, PitchBook News
Greenland should be a geopolitical footnote, given its tiny population and distance from venture capital centers. Yet, renewed threats to the island’s sovereignty—and its resources—have highlighted Greenland’s importance to the US, including Silicon Valley.
A part of the Kingdom of Denmark, Greenland was once again drawn into a diplomatic row this month after President Donald Trump reiterated his desire for the US to acquire the Arctic territory. The fresh challenge, which followed the capture of Venezuelan leader Nicolás Maduro, carries both advantages and risks for America.
For VC investors and tech executives, Greenland’s importance doesn’t stem from any consumer demand or startup density, but from its inputs.
Central to Greenland’s appeal to Silicon Valley is its swathes of rare mineral resources that power everything from smartphones to satellites. A 2023 study by the Geological Survey of Denmark and Greenland found that 25 of the 34 minerals deemed critical were present in the country.
Greenland is among the top 10 nations globally in terms of reserves that have remained largely untapped, and the melting ice due to climate change is making access easier.
Currently, China dominates the rare minerals market. More than 60% of these elements globally are mined in the Asian nation. Beijing effectively controls the world’s supply and has the power to stymie US technological advancements if it imposes restrictions.
The US is already seeking to strengthen supply chains as it looks to cut its dependence on China. Reducing its reliance is becoming more critical in the age of AI.
The large-scale computing infrastructure that underpins AI relies on elements such as neodymium and dysprosium for cooling, insulation and durability. Reduced access would mean higher costs, slower deployment and less efficient infrastructure, weakening the competitiveness of US AI companies on which investors have bet hundreds of billions of dollars.
Beyond its rare mineral reserves, investors are eyeing up Greenland as a potential hub for the ever-growing need for data centers. The island, which is roughly the size of Western Europe and has a population of 57,000, would be a prime location for data centers. Furthermore, its cold weather conditions offer an advantage. Energy costs account for approximately 60% of a data center’s total lifetime operating expenses, primarily due to the need for cooling. |
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Smart reads that caught our eye.
• China has been relying on cheap black-market oil from sanctioned producers, including Venezuela and Russia. But that's getting harder as the US and Europe crack down on illicit trading. [The Wall Street Journal]
• The Justice Department's decision to open up a criminal investigation of Jerome Powell, the chair of the Federal Reserve, is a major escalation in the pressure campaign to get the central bank to cut interest rates. Powell is publicly fighting back. [ | | | | | | | |
