DEFINITION of 'Permanent Capital Vehicle - PCV'
An investment entity for managing capital for an unlimited time horizon. A PCV is typically geared toward growing capital at the best long-term rate, and is therefore less focused on shorter-term performance.
BREAKING DOWN 'Permanent Capital Vehicle - PCV'
Good examples of PCVs would be pension funds or social security funds, which have expectations of liabilities extending out for hundreds of years into the future. College endowments or scholarship funds, which are intended to provide a specified amount of funds to select students every year for perpetuity, are another good example PCVs.
These types of investment entities are not appropriate for investors who have a limited time horizon, such as middle-aged investors who are planning to withdraw their nest eggs in 10 years.