Permanent Capital Vehicles: Dealing with the Liquidity Quandary

Although not a new concept, permanent capital vehicles (PCVs) remain a relatively underused vehicle for private equity funds in emerging markets. Investor demand for conventional structures, where commitments are invested and proceeds distributed within a defined period of time  (ordinarily invested over 5 years and a 10-12 year fund life), remains strong. However, interest in PCVs has increased significantly in recent years in the African market in certain sectors.