One of the potential advantages of investing in a private markets evergreen fund is the ability to seek to sell or liquidate your shares. Here’s everything you need to know about selling your shares in an evergreen fund on Willow Wealth.
Current evergreen funds available for liquidity include the Carlyle Tactical Private Credit Fund, Clarion Partners Real Estate Income Fund, Goldman Sachs Real Estate Diversified Income Fund, and StepStone Private Markets. Liquidity for the Clarion Partners Real Estate Income Fund is expected to be available in the near future.
When can I request to sell my shares?
Evergreen funds typically offer periodic repurchase or tender offers, which are specific windows when investors can request to sell their shares. Each of the evergreen funds currently available on Willow Wealth seek to offer quarterly liquidity to investors.
You may submit a request to sell your shares at any time on Willow Wealth. Requests are then reviewed and processed during the fund’s next repurchase or tender offer window. Please note that you may not be able to sell the full requested amount depending on the liquidity terms of the evergreen fund. Please review the fund documents for the fund in question for more information.
How do I seek to sell my shares?
To request to sell your shares, navigate to your Willow Wealth portfolio, select the evergreen fund you’re invested in, and click “Sell.” Enter the amount you’d like to sell, or choose to request liquidate your entire position.
Be sure to note the request deadline, which indicates when your request is expected to next be processed by the fund.
What happens after I submit a request?
After submitting your request, it will remain pending until it is processed by the fund after the request deadline.
If your request to sell shares is executed, proceeds will be sent to your preferred bank account via electronic transfer and you’ll receive a confirmation email from Willow Wealth.
Will I receive my full amount requested?
Private markets investments are inherently illiquid, generally requiring evergreen funds to limit how many shares can be repurchased in any given period. For example, a fund may allow up to 5% of outstanding shares to be sold in a particular quarter.
If requests from investors exceed the fund limit, the managers typically allocate the available amount proportionally across investors.
At what price will my shares be sold?
The fund’s net asset value (NAV) is the price at which your shares are sold.
If you request to sell your shares, it’s important to note that the net asset value (NAV) at the time of your request may not be the NAV used to process your sale.
If your request is fulfilled, you can view the NAV at which your shares were sold by clicking into an evergreen fund within your Willow Wealth portfolio.
Can I change the amount I am requesting to sell?
You can amend or cancel your request at any time before the request deadline from the evergreen fund’s page within your Willow Wealth portfolio.
How do taxes work?
If your request to sell shares is executed, you can expect to receive a Form 1099-B, which reports the sale for tax purposes.
Liquidity is determined by each fund and its manager and is not guaranteed. For important details regarding liquidity, including timing and limitations, please refer to each fund’s Prospectus.