Permanent capital
Capital without a predetermined fund-liquidation date, allowing a potentially long ownership horizon subject to financing, liquidity and governing terms. The vehicle’s label alone does not establish that horizon.
Permanent capital in practice
Hypothetical: a buyer with no predetermined fund-liquidation date could hold an investment for twenty years, provided its financing, liquidity and governing arrangements permit. That possibility is not a promise that the asset will never need to be sold.
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| Structure | Time constraint |
|---|---|
| Fixed-term fund | Scheduled fund term, subject to extensions and governing terms |
| Permanent capital | No predetermined fund-liquidation date |
| Either structure | Financing, liquidity and governance can require a sale |
Shayne Fitz-Coy’s definition of Permanent capital
Permanent means different things to different people. Some say permanent and mean twenty years, and some mean forever.
Ask which one they mean before treating the horizon as settled.
Terms Related to Permanent capital
Holding company (holdco) · Family office · Fund life · All of the glossary