My thoughts (so far) on building permanent capital

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September 17, 2019

by an investor from University of Portland in Portland, OR, USA

My thoughts (so far) on building permanent capital, there seem to be 2 ways to do so:

  1. Get a high paying job, build up cash and relationships, use both to acquire businesses.

  2. Start small businesses, buy others, slowly build portfolio.

Any others?

https://www.thinklikeowners.com/tailwinds-8

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Reply by an intermediary
from Southern New Hampshire University in Gillette, WY, USA
Hi Alex, One model I’ve been thinking through doesn’t fit neatly into either path you mentioned: non-operating governance / control-layer infrastructure designed to sit above operating businesses and compound across portfolios. I’m pressure-testing whether you’ve seen capital allocators treat that kind of asset as permanent capital. Would value your perspective
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Reply by a searcher
from Massachusetts Institute of Technology in Florida, USA
If the permanent capital is to be used to acquire targets vis-a-vis ETA then you have many options, including SBA loans, traditional funded searches, high net worth individuals, balance sheet cash assets, or most likely some combination of the above.
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