EP269: The $350M 30-Year Fund Model

In this interview, Brent Beshore discusses Permanent Equity's unique fund structure, which contrasts with traditional private equity by employing a 30-year fund timeline and avoiding transaction debt, allowing for long-term business relationships and reinvestments. He explains the concept of compounding growth, emphasizing the removal of obstacles to accelerate business growth, and shares insights on how a long-term perspective enabled strategic reinvestment during the COVID-19 pandemic. Brent also details Permanent Equity's approach to management fees, which are structured to align the firm's success with that of its investors, and addresses the firm’s philosophy on debt, preferring to avoid it in sectors susceptible to economic cycles to maintain flexibility. He also shares his approach to working with business owners, preferring those who value legacy and continuity over maximizing immediate financial gain, and emphasizes the importance of people and relationships in business, highlighting the firm's preference for earnest, sincere partners and its strategies for dealing with challenging personalities.