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.


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.

  1. Long Term

    Holding an asset for an extended period of time. Depending on the type of security, ...
  2. Long-Term Assets

    1. The value of a company's property, equipment and other capital assets, minus ...
  3. Buy And Hold

    A passive investment strategy in which an investor buys stocks and holds them ...
  4. Secular

    An adjective used to describe a long-term time frame, usually at least 10 years. ...
  5. Time Horizon

    The length of time over which an investment is made or held before it is liquidated. ...
  6. Long-Term Growth - LTG

    An investing strategy or concept where a security will appreciate in value for ...
  7. Surrender Period

    The amount of time an investor must wait until he or she can withdraw funds ...
  8. Equivalent Annual Annuity Approach ...

    One of two methods used in capital budgeting to compare mutually exclusive projects ...
  9. Distribution Yield

    The amount of cash flow received or paid out by an annuity, REIT or other similar ...
  10. Annuity Certain

    A financial instrument that provides a stream of payments, for a predetermined ...
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