Perpetual Capital
Assets under management that have no contractual end date -- the manager is not obliged to return the money on a schedule, so the fee stream does not run off. It is the most valuable kind of AUM an alternative asset manager can hold, because traditional private-equity funds have a fixed life and must eventually sell their assets and stop paying fees. Perpetual vehicles (permanent-capital funds, insurance balance sheets, listed vehicles) turn a project-based business into an annuity, which is why managers report the figure separately and why the market pays a higher multiple for it.
Related terms
Absorption Rate · AFFO per Share · Allowed Return on Equity · Alternative Investments · Anchor Tenant · Ancillary Spend per Visit
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