Evergreen funds — often called interval or tender offer funds — generally have a slightly different fee structure than other types of private markets investments.
When you invest in an evergreen fund on Yieldstreet, you are subscribing directly to the fund. This means the fee schedule is set by the fund’s manager — not by Yieldstreet.
Each evergreen fund offering page will show all estimated fees and expenses of the evergreen fund set by the manager. For additional details on fees, investors can refer to each fund’s prospectus.
It is important to note that fees and expenses vary by share class. The share class of each fund is listed on the offering pages.
Here’s a breakdown of the fees on evergreen funds:
Gross annual expenses
The fund’s gross annual expenses represent all ongoing expenses of the fund. While each fund has different line items, ongoing expenses typically include a management fee, as well as various expenses of the fund. Gross annual expenses do not contemplate any fee caps set by the manager.
Returns shown for evergreen funds — both historical returns on marketing materials and returns in your portfolio — reflect the impact of gross annual expenses.
Adjusted annual expenses
Adjusted annual expenses, also referred to as a net annual expense ratio, represent the fund’s total annual expenses, excluding certain investment-related expenses borne by the fund. Adjusted annual expenses may also take into account any fee caps by the manager.
Adjusted annual expenses are intended to provide investors with an apples-to-apples comparison of expense ratios across funds.
One-time commitment fee
Third-party evergreen funds generally carry a one-time commitment fee, which is also commonly referred to as a sales load or transaction fee. This amount is charged upfront when you make your first investment or increase your allocation to an evergreen fund — not on an ongoing basis.
Unlike non-evergreen funds on Yieldstreet with a commitment fee, the commitment fee on evergreen funds will not show as a line item when you are submitting an investment request due to platform limitations.