Hey all,
First and foremost, I highly recommend King of Capital to anyone looking for a good read on PE. The book goes into great detail about Blackstone's history, its founders, and the nature of the private equity landscape over the last 30 years. I understand most of the jargon but I am having a little bit of trouble understanding the idea of "perpetual capital".
The book mentions Ripplewood Holdings, which in March 2005 moved 7 of its investments to a newly formed holding company which then sold $1.85 billion of shares to the public on the belgian stock exchange. This new holding company, RHJ International, would manage and sell off its holdings over time and reinvest the proceeds. The book states that in effect, Ripplewood Holdings operated as a buyout fund with perpetual capital.
Basically, how does this concept of "perpetual capital" work? I'm a new guy in the industry, currently working as a Summer Analyst intern for an investment bank.
Thanks!
-km190
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