Private markets are in the middle of a structural transition.

For decades, the industry ran on a "stock" model: capital entered closed-end structures, remained locked up for ten years, and eventually returned to investors. That framework is breaking under the weight of changing investor preferences and compressing competitive advantages.

We are actively transitioning to a "flow" business. Capital must move continuously, precisely, and responsively.

In our 2025 Annual Letter, we unpack the structural shifts driving this transition and the infrastructure required to support it.

Key themes from the letter include:

• Two Revolutions, One Collapse in Cost: A new system of record (digital ledgers) and a new system of orchestration (agentic AI) are arriving simultaneously. Together, they are driving the marginal cost of distribution, administration, and secondary transfers to near zero.
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• The Efficiency Paradox: Automating the "measurable" back-office friction does not displace the human element—it concentrates it. As execution becomes commoditized, the market premium on human judgment, curation, and deep trust will grow, not shrink.
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• Structuring as a Competitive Advantage: Asset selection is necessary, but execution is the differentiator. We detail how digitizing the mechanics of transactions in 2025 unlocked unique access and secondary value in landmark deals like Xiaohongshu, Corfu Gas, and the MemeStrategy Trading Card Fund.
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• Our 2026 Outlook: We detail the conviction behind our investment barbell—AI and digital platforms on one side, hard-to-disrupt physical infrastructure on the other—and a candid assessment of where our thesis carries execution risk.

The future of financial services will not be defined by incremental improvements, but by a fundamental rewiring of the underlying infrastructure.

Read the full EVIDENT 2025 Annual Letter.
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