Opportunities in Patient Capital Financing

Julie Segal () and Erica Barbosa Vargas ()
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Julie Segal: The J.W. McConnell Family Foundation
Erica Barbosa Vargas: SecondMuse Capital

A chapter in Innovations in Social Finance, 2021, pp 193-210 from Springer

Abstract: Abstract This chapter introduces the concept and applications of patient investment capital. It proposes patient capital as an instrument that, while in most cases requires investor flexibility, is not restricted to particular return preferences or asset types. Patient capital is defined as contingent on investor orientation rather than the length of investment term. In this chapter, we review the applicability of patient capital across investment types; however, we focus on its use in advancing social and sustainable outcomes in private market transactions. We outline the history of patient capital across institutional investors’ portfolios and draw upon case studies to provide evidence for the following two points: first, that patient capital has been structured to appease various levels of risk tolerance and can be used to meet distinct portfolio needs, and second, that patient capital is a necessary form of investment for creating, supporting, and aligning with social value and the impact economy.

Keywords: Patient Capital; Long-Term Investing; Social finance; Sustainable finance (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-72535-8_9

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DOI: 10.1007/978-3-030-72535-8_9

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