Traditionally, buy-out groups have raised funds through unlisted offerings of interests in closed-ended funds.
The application of debt finance has enabled buy-out firms to increase the scale and scope of their investments, but the establishment of a listed permanent capital vehicle (PCV) offers a private equity group the opportunity to raise even larger amounts of capital from a single public offering, which is immediately available for investment into, and co-investment alongside, the group’s own funds. The ability to raise evergreen capital in this way also reduces the monetary and time costs incurred by private equity groups.
