In an effort to diversify investment offerings for high-net-worth individuals and institutions, Lincoln Financial Group and Partners Group have unveiled a royalty evergreen fund in the U.S. market.
Announced on September 25, 2025, the fund—dubbed the Lincoln Financial Royalty Evergreen Fund—marks the latest collaboration between the insurance firm and the Swiss-based private markets specialist.
This partnership aims to tap into the burgeoning demand for alternative assets that deliver stable, income-generating returns decoupled from volatile equity markets.
Lincoln Financial, a Philadelphia-headquartered firm with over $300 billion in assets under management, has been a pillar in the retirement and investment services sector.
Known for its life insurance, annuities, and wealth management products, the company has increasingly pivoted toward alternatives to meet evolving client needs.
Partners Group, managing more than $150 billion globally from its Zurich base, brings deep expertise in private equity, real estate, and infrastructure.
Their joint venture builds on a successful track record of co-investments, including prior evergreen structures that have attracted billions in commitments.
At the core of this launch is the evergreen fund structure, a perpetual vehicle that stands in contrast to traditional closed-end private funds with fixed lifecycles.
Evergreen funds allow continuous capital inflows and outflows, providing investors with liquidity options—typically quarterly redemptions—while maintaining long-term exposure to illiquid assets.
This model is appealing in today’s economic climate, where interest rate fluctuations and geopolitical uncertainties have heightened the appeal of non-correlated income streams.
The fund’s focus on royalties positions it as a niche player in the alternatives space, targeting revenue-sharing interests from intellectual property, natural resources, and media content.
Royalties, essentially perpetual payments derived from underlying assets like music catalogs, pharmaceutical patents, or oil and gas production, offer predictable cash flows with low operational overhead.
Unlike direct equity stakes, they provide downside protection since payments are tied to usage or output rather than company performance.
The Lincoln Financial Royalty Evergreen Fund will primarily invest in U.S.-based royalty streams across entertainment, energy, and life sciences sectors.
Initial targets include music rights portfolios from major labels and biotech licensing agreements, with a portfolio construction emphasizing diversification to mitigate sector-specific risks.
The fund’s launch comes at a pivotal moment for the U.S. alternatives market, which has seen evergreen vehicles surge in popularity.
According to Preqin data, evergreen fund assets under management grew by 25% year-over-year in 2024, driven by retail investor access via platforms like Schwab and Fidelity.
For Lincoln Financial, this initiative aligns with its broader push into alternatives; the company already offers private credit and real estate funds through its Lincoln Financial Investment Management arm.
Royalties provide a blend of yield and stability, helping advisors construct resilient portfolios amid market turbulence.”
From Partners Group’s perspective, the fund enhances its North American footprint.
The fund targets accredited investors with a minimum commitment of $250,000, aiming for an initial close of $500 million by year-end.
Fees are structured competitively, with a 1.5% management fee and 15% performance hurdle, underscoring the partners’ confidence in generating 8-12% annualized returns.
This launch isn’t without challenges.
Regulatory scrutiny around evergreen liquidity promises remains, as seen in recent SEC guidelines emphasizing transparency in redemption gates.
Moreover, sourcing high-quality royalty assets requires navigating fragmented markets, from Hollywood back-catalogs to shale royalties.
Yet, the partners’ complementary strengths—Lincoln’s client network and Partners Group’s deal flow—position the fund for long-term growth.
Broader implications seem to ripple through the financial advisory sector.
As baby boomers seek decumulation strategies, royalty-focused evergreens could become staples in diversified IRAs and trusts.
They also signal a maturation of alternatives, shifting from high-beta private equity to income-oriented plays.
For competitors like Blackstone and KKR, who have dipped into royalties via acquisitions like Hipgnosis Songs Fund, this entry could increase competition while validating the asset class.