Question

write a comment on permanent capital​

Answer 1

Answer:

Open-ended investments are becoming more common in private equity. For private-equity investors, permanent capital is an open-ended investment in a company. That’s different from the way private equity usually works.

Typically, a private-equity fund “invests in businesses for a specific period, usually five to seven years, and then sells the position and gets the cash back to the investors,” says Philippe Couvrecelle, founder and chief executive of London-based iM Square, a firm that invests in asset-management companies.

Answer 2

Answer:

Permanent capital is an investment for an indefinite period of time in an underlying vehicle. The vehicle can be any form – a corporation, trust or partnership. The investment entity could be publicly traded or privately held which we focus on here.