Evergreen private equity and investment funds offer continuous capital pooling without fixed termination dates, but they carry unique disadvantages. A primary drawback is limited liquidity; unlike public equities, evergreen funds often enforce strict redemption gates, quarterly withdrawal caps, and lengthy notice periods that can trap investor capital during market downturns. Additionally, these funds can suffer from valuation lag, as private market assets are not priced continuously on public exchanges. Investors also face high management fee structures, ongoing administrative expenses, and potential dilution risks as new capital continuously flows into the fund portfolio.