Private Credit Pivots to Funds Giving More Access to Client Cash

Private credit funds are increasingly keen on structures that allow institutional investors the option of taking their money out more easily.

Firms such as Carlyle Group Inc. and KKR & Co. are among those building so-called evergreen funds, to help answer a common critique of the $1.6 trillion market — that investors are forced to lock up their cash for as long as 10 years in a single fund.

Traditional closed-end funds run on a fixed time-line. Investors commit capital and then wait for fund managers to draw down those commitments to invest in deals. Once that period of investment ...