Private credit funds are gating. Here's which ones have runway — and which ones don't.

While the market debates whether private credit assets are overvalued and whether equity funds could be next, advisors are dealing with a more immediate and actionable problem. They don't know which funds are approaching the point where redemption pressure starts forcing investment portfolio and fund operation decisions — and which ones still have runway.

We built the analysis to answer that question. What it shows should be required reading for every advisor with client capital in evergreen funds today.

What liquidity runway measures — and why it matters

Liquidity runway is a key metric the wealth management industry isn’t tracking. It answers a simple question: at the current pace of redemptions, how long can a fund sustain outflows before its readily available liquidity is exhausted?

It is a different question from whether a fund is currently gated. A gate is a limit on outflows that the fund manager controls. The gate helps manage the tension between the liquidity needs of investors in the fund and the illiquid portfolio assets held by the fund. Funds usually have a stated cap at which gates are imposed, but history will tell you that gates are many times exceeded or lowered or even shut closed. The gate itself doesn’t tell you if the fund has liquidity available for redemptions or how the fund will perform.

Liquidity runway tells you something more important -- it tells you how close a fund manager is to making a series of defensive portfolio decisions: slowing reinvestment rates, drawing on credit facilities, taking on more debt, selling assets, accelerating fundraising to offset outflows, cutting distributions, or simply capping redemptions. Each of these decisions may change the nature of what the client is holding.

For Sekond’s benchmark, we calculate liquidity runway at full gate utilization: how long does available liquidity last if the fund gates and processes redemptions at the maximum permitted cap rate listed in the fund documents? Available liquidity includes reported cash equivalents, credit facilities in place and net income.* 

The runway number tells you how much time the gate buys the manager. For an advisor, they help answer how much time an advisor has before they need to start asking questions. At a minimum, an advisor seeing a fund come up on its runway, needs to dig into the numbers and talk to the manager about courses of action on a fund level or take action on behalf of the client.

*Please note that available liquidity does not include capital available to the fund as a result of portfolio turnover and or possible increases in credit facilities.

The liquidity runway benchmark

We have analyzed the liquidity runway across 41 private credit evergreen funds — the largest and most widely distributed vehicles available to individual investors today — using publicly available regulatory filings compiled into a continuously-updated view.

The results listed below are as of December 31, 2025 and establish the first published benchmark for this metric across the private credit evergreen fund market.

Key findings:

• The median liquidity runway at full gate utilization is 1.19 years.
• The fund with the shortest liquidity runway in the benchmark has 0.11 years of runway at full utilization. The fund with the longest runway has 3.55 years.
• 14 funds are operating with less than one year of runway at full utilization pace.

Every one of these funds is being distributed to individual investors by wealth advisors who, until now, have had no published benchmark against which to evaluate them.

What this means for advisors

Liquidity runway is not a judgment about whether a fund's underlying assets are good or bad. It is a measure of how much time the fund manager has to let the investment thesis play out without redemption pressure forcing their hand.

A fund with two years of runway at full utilization pace has room. A fund with three months of runway is likely already making portfolio decisions in response to redemption pressure, whether or not a gate notice has been issued. An advisor whose client is in that fund needs to know — not because the answer is automatically to exit, but because the things to monitor in the fund are different, the conversation with the client is different, the timeline is different, the need for information is different, and the options narrow as runway shortens.

The question advisors should be asking right now is not whether their client's fund is currently gated. It is where their fund sits in this distribution — whether that position is improving or deteriorating quarter over quarter and what the manager is doing to manage the position.

The data is available now

Sekond tracks 140+ evergreen funds compiled from publicly available regulatory filings into a continuously updated decision-intelligence platform. This April, we launched a free liquidity monitoring tool for wealth advisors — available at www.sekond.co — that provides current liquidity profiles for the funds in this benchmark and the broader evergreen fund universe.

The information asymmetry between fund managers and the advisors who distribute their products has been structural. At Sekond, we believe it doesn’t have to stay that way.