The debate between perpetual capital and private equity has gained momentum as investors seek sustainable and robust investment vehicles. While private equity has long been the dominant force in financing, perpetually structured funds and investment holding companies are emerging as an attractive alternative. What are the benefits of a holding company and why should business owners consider this long-term option over a traditional private equity model?

Flexibility and Stability

Investment holding companies are truly perpetual, which offers unique advantages in flexibility and stability. Unlike traditional private equity funds, which operate within fixed investment horizons, perpetual companies have no predefined exit timelines. This flexibility allows management to make decisions based on long-term value creation rather than short-term gains, potentially fostering stability and resilience in volatile markets.

Alignment of Interests

When a holding company acquires an asset, its time horizon is perpetual. One of the critical advantages of perpetual partnerships is its alignment of interests between investors and managers. In traditional private equity, fund managers often have a finite window to generate returns, leading to short-term decision-making that may not always align with investors’ interests. Perpetually-structured investors, on the other hand, incentivize managers to prioritize sustainable growth and value creation over quick exits, fostering a stronger alignment of interests between all stakeholders.

Long-Term Value Creation

Perpetual capital creates a culture of long-term value creation. With no pressure to exit investments within a predetermined timeframe, managers can focus on building and nurturing portfolio companies over extended periods. This long-term approach allows for patient capital deployment, more long-term strategic planning, and the implementation of sustainable growth strategies, which, in our opinion can ultimately drive higher returns and mitigate risk. Additionally, the perpetual nature of these funds/companies ensures continuity in management and strategy, promoting stability and trust among investors and portfolio companies alike.

At CPC, we seek to foster that long-term value creation and continuously improve our operating companies by working alongside and supporting our management teams in the Five Key Battles™: People, Customer Intimacy, Product Leadership, Operational Systems, and Execution Capabilities. The Five Key Battles™ (5KBs) serve as a framework and almost a scorecard for our management teams. With a perpetual time horizon, we look at what “battles” our companies are currently winning and develop an enduring strategy for gaining ground on the areas needing improvement. This focus on the 5KBs guides management into making a longstanding commitment to improvement versus focusing on a quick hit win for investors. CPC fundamentally is not a company that buys and flips businesses. We are reinvesting around our businesses, and we want to build a stable of companies over time that we own for decades, not years.

As investors increasingly prioritize long-term value creation and sustainability, perpetually structured funds are emerging as a pervading alternative to traditional private equity. Offering flexibility, alignment of interests, long-term value creation, access to diverse opportunities, and enhanced liquidity and continuity, perpetual capital presents a compelling proposition for investors seeking robust and resilient investment vehicles in today’s dynamic market landscape. 

“At the end of the day, we believe that management teams want to find an investor who really wants to own their business and that is what perpetual capital and a holding company provide,” commented Wiley Curran, CPC Co-Founder and Chairman. “When you own something, you treat it differently than if you are renting it for a few years trying to make a return on your original investment. At CPC, when we buy a business, we are buying it to keep it – along with the legacy, the traditions, and the vision instilled in a business by the founders. CPC wants to continue to grow these businesses, not fundamentally change them or sell them quickly. “ 

As a holding company, we have the ability to buy, build, and hold™ businesses for many, many generations.


CPC Management, LLC (“CPCM”) is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. More information about CPCM’s investment advisory services can be found in its Form ADV Part 2, which is available upon request.

The opinions expressed are those of CPCM. The opinions referenced are as of the date of publication and are subject to change due to changes in the market or economic conditions and may not necessarily come to pass. Forward-looking statements cannot be guaranteed.

This document may contain certain information that constitutes “forward-looking statements” which can be identified by the use of forward-looking terminology such as “may,” “expect,” “will,” “hope,” “forecast,” “intend,” “target,” “believe,” and/or comparable terminology. No assurance, representation, or warranty is made by any person that any of CPCM’s assumptions, expectations, objectives, and/or goals will be achieved. Nothing contained in this document may be relied upon as a guarantee, promise, assurance, or representation as to the future.