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| The Daily Pitch |
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| Your edge on global private capital markets |
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| Good morning. In today's Daily Pitch, we look at the 10% bump in year-end bonuses for secondaries jobs, medtech's next growth wave and Sequoia's new leadership. |
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| Morningstar and PitchBook partner on new evergreen fund indexes |
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By Zane Carmean, Director of Quantitative Research
Morningstar and PitchBook have teamed up on a new suite of investment indexes focused on evergreen funds, slated to become available in Q1 2026.
The Morningstar PitchBook US Evergreen Fund Indexes will offer investors comprehensive, standardized peer group benchmarks designed to measure the performance of fast-growing evergreen funds.
With US assets nearing $450 billion and projected to surpass $1 trillion by the end of the decade, these evergreen—or "semiliquid"—funds provide investors with access to private market strategies with intermittent liquidity all in one place.
Yet as access broadens, allocators need better tools to understand the risk and return profiles of these vehicles relative to other private and public opportunities. Public benchmarks are helpful reference points, but evergreen fund asset mixes and liquidity structures differ meaningfully from listed equities or bonds.
Standard private market indexes, meanwhile, are typically built around drawdown funds or gross returns of individual holdings, limiting their comparability. |
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The Morningstar PitchBook US Evergreen Fund Indexes aims to bridge that gap. The family of 10 benchmarks (which will be offered in both asset-weighted and equal-weighted formats) track interval and tender-offer funds, nontraded BDCs, and REITs across private equity, credit, real estate, infrastructure, and multi-asset strategies.
As trillions of dollars flow from private wealth into private markets, these benchmarks should provide a much-needed framework for peer comparison, transparency and performance evaluation. |
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• PE investment in Europe's hotel and resort sector has surged to around €8 billion in 2025, doubling last year's total and matching the previous peak in 2015, driven by confidence in post-pandemic recovery and resilient revenues. Read more
• Apollo Global Management will invest $6.5 billion for a 50% stake in the world's largest wind farm. The deal for Orsted's Hornsea 3 venture in the North Sea follows multibillion-dollar investments in other European energy projects. Find out more
• More Apollo news: In its Q3 earnings call, the firm's CEO said it will expand its private wealth business through partnerships with traditional asset managers, aiming to broaden individual investor access to private assets. Read more
• AI is on the forefront of medtech's next growth wave—from smart implants to surgical navigation systems. See what else our analysts discovered
• Our latest Global Markets Snapshot breaks down a month of trends in the equity, debt and commodities markets, and also features private market activity. Here's our full breakdown |
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| Don't be swayed by secondary market's 10% bump to bonuses |
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By Jessica Hamlin, Senior Funds Columnist
As private market professionals eagerly await year-end bonuses, a top Wall Street compensation consultant warns against chasing the biggest annual payout.
For the second consecutive year, secondaries fund managers will receive bonuses that are 10% or higher than last year, while PE and VC bonuses will be mostly flat, according to new data from financial compensation consultant Johnson Associates. But the stable career choice remains in the two primary asset classes, according to the firm's founder and managing director, Alan Johnson. |
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While the promise of a lofty year-end check may entice talent to join the booming secondary market, Johnson said he would still advise early-career talent to aim for a traditional PE or VC role. The larger and more mature markets, compared to hot asset classes like secondaries and private credit, offer greater stability for professionals looking for a long-term career choice.
On the less glamorous side, year-end compensation at middle-market PE shops will remain flat, and bonuses at large-cap buyout firms will move anywhere from flat to a slight 5% increase year-over-year, as the asset classes continue to struggle to return capital to LPs.
In the private markets, Wall Street bonuses depend on a combination of individual and firm-wide performance measures, from a VP's ability to source lucrative deals to a flagship fund's IRR and a firm's ability to fundraise.
Secondaries funds raised $70.9 billion in H1 2025, a 20.4% trailing-four-quarter annual increase, as the asset class benefited from the PE and VC asset pileup in aging funds, according to PitchBook's latest Global Private Market Fundraising Report.
Meanwhile, PE and VC fundraising figures through the first six months of the year fell 34.4% and 35%, respectively. Of the capital raised by PE and VC managers, the vast majority went to large-cap funds, placing stress on lower and middle-market firms.
Industry players expect this stress to lead to a shakeout, or a period of firm failures and consolidation, which Johnson said will create more opportunities for new entrants and talent. |
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Smart reads that caught our eye.
• How cables underneath Europe's longest beach could transform Portugal's economy. The beach is becoming a target for data center developers as they build AI infrastructure across Europe. [Bloomberg]
• Amazon is using robots to bring brands like Pepsi and Kraft to Whole Foods. Experiments across the country are integrating mainstream brand names into the shopping experience of the natural foods giant. [The Wall Street Journal]
• The crypto empire of President Donald Trump's sons is held up by "the smaller guys." Two boutique banks are capitalizing on a digital asset boom and having the right connections. [Financial Times] |
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