With an increased demand for portfolio diversification through private markets solutions, many investors are looking to evergreen funds to access flexible, institutional-quality investments. While there are benefits to considering these solutions, investors need to understand the differences across various evergreen vehicles. With this in mind, we are pleased to share our practical guide to evergreen funds to help you navigate the key features and benefits. What Are Evergreen Funds? Evergreen funds are continuously offered vehicles that provide access to private companies and allow investors to enter or exit the fund periodically. Potential Benefits Compared to Traditional Private Funds Accessibility Access to institutional-quality private markets investmentsLower investment minimums and investor suitability standards subject to market conditions Flexibility Perpetually available for purchase with periodic liquidity subject to market conditions (unlike drawdown funds, which have more restricted liquidity) Exposure No J-curve1, immediate exposure to an existing portfolio of assets Simplicity Ease of tax reporting through a 1099, rather than a K-1 With increased demand for evergreen funds, there are key differences across vehicles that investors should consider. Click for more key differences with Evergreen Funds More Liquidity of Investments Less Evergreen Funds Traditional Private Funds Mutual Fund Interval Fund Tender Offer Non-Traded BDC2 Non Traded REIT3 Typical Drawdown Definition Pools money to invest in stocks, bonds, and short-term debt. Closed-end fund that allows investors to buy shares anytime but restricts selling to defined periods ("intervals") - often quarterly. Unlisted closed-end fund that offers limited liquidity each quarter up to 5% at the Board's discretion. Private investment strategies that typically use capital call process to invest in the fund. Typical Use Case Public stocks and bonds Range of private markets investments (e.g., private equity, private credit, and real estate) Private credit (primarily direct lending) Private real estate Wide array of private markets and alternative strategies Redemption/Repurchase Requirements Daily Periodic, must offer to repurchase 5-25% at specified invervals4 Periodic, may allow tender of shares up to 5% at board's discretion Periodic, unlisted, perpetual life, with quarterly liquidity, like Tender Offer Funds Varies, limited Purchase Method Ticker Sub-document Partnership agreement Investor SuitabilityStandard None Varies5 Net worth of $250k or annual gross income of $70k6 Accredited or higher Simplified TaxReporting ✔1099 -K-1 Continuously Offered/Lifespan ✔ -(fixed end date) Leverage Limits(Debt to Equity) 33% 200% 300% No limit Investment Minimum $ $$ $ $$$ Information provided for illustrative purposes. 1J-curve describes how closed-end funds typically experience negative returns early in a fund’s life, usually because while capital commitments are called, fees are charged prior to the realization of returns. 2Business Development Company. 3Real Estate Investment Trust. 4There is no guarantee made that investor will be able to sell all of the shares that they desire to sell in any particular repurchase or tender offer. Full liquidity in any given period is not guaranteed. An investor should not invest in any of the funds discussed herein if a fully liquid investment is needed. 5Typically, an accredited investor. 6States may impose suitability requirements that vary from the FINRA standard. Questions? Contact the AMG Sales Desk below to learn more. Contact Us Advisor Line: 800.368.4410 Email: clientservice@amg.com This document does not constitute an offer to sell or a solicitation of an offer to buy securities issued by AMG Funds, LLC. Any such offer will be made only by means of the Prospectus to investors who meet minimum suitability requirements. It is presented solely for information purposes only. Additionally, this material is not intended, nor should be construed, to be a recommendation or investment advice, does not constitute a solicitation to buy, sell or hold a security or an investment strategy, and is not provided in a fiduciary capacity. The information provided does not take into account the specific objectives or circumstances of any particular investor or suggest any specific course of action. Alternative investments, such as those discussed herein, often are speculative, typically have higher fees than traditional investments, often include a high degree of risk and are suitable only for eligible, long-term investors who are willing to forgo liquidity and put capital at risk for an indefinite period of time. They may be highly illiquid and can engage in leverage and other speculative practices that may increase volatility and risk of loss. It is possible that investors may lose some or all of their investment. There is no guarantee made that investor will be able to sell all of the shares that they desire to sell in any particular repurchase or tender offer. Full liquidity in any given period is not guaranteed. An investor should not invest in any of the funds discussed herein if a fully liquid investment is needed. These funds may be non-diversified, which means that they may be invested in a relatively small number of underlying funds or portfolio companies, which subjects them to greater risk and volatility than if they had been invested in a broader range of holdings. Investments in debt securities are subject to credit and interest rate risk. Underlying funds held by private equity and credit funds, and many of the securities held by the underlying funds may be difficult to value and will be priced in the absence of readily available market quotations, based on determinations of fair value, which may prove to be inaccurate. Fund investors will bear asset-based fees and expenses at the fund levels, and will also indirectly bear fees, expenses and performance-based compensation of the underlying funds. Underlying funds will not be registered as investment companies under the Investment Company Act of 1940, as amended (the “1940 Act”), and a fund’s investments in underlying funds will not benefit from the protections of the 1940 Act. The value of a fund’s investments in underlying funds will also fluctuate and may decline. Real estate investments are subject to factors such as changing general and local economic, financial, competitive, and environmental conditions. Values of investments may fall rapidly or unpredictably due to a variety of economic or political factors, market conditions, disasters or public health issues, or in response to events that affect particular industries or companies. Nothing contained in this document is intended to constitute legal, tax, securities or investment advice. The general opinions and information contained herein should not be acted or relied upon by any person without obtaining specific and relevant legal, tax, securities or investment advice. No assurance can be given that a particular fund’s investment program will be successful. An investment in any fund should be viewed only as part of an overall investment program. Past performance is no guarantee of future results. Actual results may vary. Diversification does not assure profit or protect against loss of capital. Opinions expressed reflect the current opinions of AMG Funds, LLC as of the date appearing in the materials only and are based on our opinions of the current market environment or industry trends, which are subject to change and should not be construed as research or investment advice. There can be no assurances that any of the trends described herein will continue or will not reverse. These materials, and the information contained herein, do not purport to be complete and no obligation to update or otherwise revise such information is being assumed. Nothing shall be relied upon as a promise or representation as to the future performance of any fund. Investment products are not FDIC insured, are not bank guaranteed and may lose value. AMG Funds LLC is a subsidiary and U.S. distribution arm of Affiliated Managers Group, Inc. (NYSE: AMG). AMG Distributors, Inc. is a wholly owned subsidiary of AMG Funds LLC. © 2025 AMG Funds LLC. All rights reserved. AMG Funds are distributed by AMG Distributors, Inc., a member of FINRA/SIPC.