The plight of permanent capital
Permanent capital vehicles have been touted as a solution for alternative asset managers seeking stable long-term financing. However, the market has all but closed to new business, prompting deal sponsors to rethink the way these vehicles are structured and marketed. Rachel Wolcott investigates
Alternative investment managers thought their prayers had been answered. When some firms started listing closed-end funds to access so-called permanent capital, which allows them to extend the duration of their funding to near perpetuity, it looked like a solution they all could use. It isn't.
While several alternative managers have successfully raised funds through the equity capital markets, other well-known players have had deals fail in the initial public offering (IPO) process. Permanent
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