Why Permanent Capital Matters Now More Than Ever
The investment landscape is shifting away from short-term gains toward long-term value. More firms are embracing permanent, patient capital to build lasting businesses. This new approach reflects a fundamental change in how private markets operate today.
The Shift Toward Permanent Capital and Patient Capital Investment in Private Markets
Venture capital—the model that defined the past three decades—is being reimagined. Across the industry, we’re seeing the most influential firms pivot away from the traditional 10-year fund structure in favor of something more lasting: permanent capital.
Josh Kushner’s Thrive Capital recently launched Thrive Holdings, a vehicle designed to acquire and operate businesses with no timeline to exit. Thrive helped shape modern tech investing in New York—and now even it is stepping away from the standard VC playbook.
Lightspeed Venture Partners registered as an RIA, giving the firm flexibility to invest across public and private markets, secondaries, and platform-style businesses—more like a Berkshire Hathaway than a classic fund.
General Catalyst acquired a hospital system, launched in-house operating businesses, and rebranded as a “transformation company.” It’s no longer just an investor—it’s becoming a permanent owner-operator.
And most recently, Andreessen Horowitz, along with Founders Fund, Lux Capital, and others, invested $76 million into the Advanced Manufacturing Company of America (AMCA)—a new platform focused on rebuilding American industrial capacity. This isn’t a typical high-growth software startup. It’s a long-term bet on critical infrastructure, built on patient capital and strategic ownership.
These moves aren’t cosmetic. They’re structural. The playbook is changing. And it’s validating something Legacy has believed from the beginning.
While many of these firms are pivoting, Legacy was designed around permanent capital from day one.
Why Permanent Capital and Patient Capital Are Redefining Long-Term Investing Strategies
For decades, the venture capital and private equity industries have been governed by fund structures with predetermined lifespans—typically 10 to 12 years. And while that model helped launch thousands of successful companies, it comes with fundamental constraints:
Rigid exit timelines
Return pressure within fixed windows
Limited ability to reinvest or hold long term
Misalignment with operators who want to keep growing, not sell
The result? Investors often push companies to exit prematurely, pursue excessive risk, or limit reinvestment during critical periods—all in service of the fund’s calendar.
That model is now being questioned—by some of its own architects.
Enter permanent capital. This approach is challenging the traditional model by offering something both investors and operators desperately want: patience.
Balance Sheet Investing: Unlocking Long-Term Investment Strategy with Permanent Capital
At the core of the permanent capital model is a simple but powerful shift in how money is sourced and deployed. Traditional funds raise capital from outside LPs and deploy it in cycles. Permanent capital firms invest directly from their own balance sheets—or from long-dated, reinvestable capital pools.
At Legacy, that capital comes from families who’ve built and operated real businesses. These aren’t institutional LPs looking for a 3–5x return on a spreadsheet—they’re partners who understand payroll, people, and process. And they’re aligned with our long-term vision.
This structure unlocks several key advantages:
No pressure to raise new funds every few years
No forced exits to satisfy LP redemption timelines
Freedom to reinvest profits across the platform
Complete alignment with operators who want to build, not sell
When you remove the pressure to return capital on a fixed schedule, you unlock the ability to truly support a company through its full growth journey—not just the parts that look good in a pitch deck.
The Patient Capital Advantage
Business isn’t a straight line. It takes time to build something durable—especially in infrastructure-heavy, compliance-driven, or operationally complex industries. That’s where permanent capital shines.
Legacy doesn’t invest with a timer running. It partners with business owners for the long haul. It allows for real reinvestment, deliberate growth, and thoughtful professionalization. When a founder says, “I’ve hit a plateau,” that’s when Legacy steps in—not with a growth hack, but with the capital and operational support to get to the next level.
This long-term view is especially valuable in essential industries—where transformation isn’t always immediate, but it’s always lasting.
Permanent Capital with Liquidity: Combining Patient Capital and Long-Term Investing Flexibility
While the beauty of permanent capital lies in its patience, it doesn’t mean liquidity disappears.
Unlike traditional private equity or venture funds, which offer no liquidity until an asset is sold, permanent capital firms can generate liquidity through the platform itself—especially if that platform eventually becomes a public company.
Taking the permanent capital company public (rather than its portfolio companies) gives investors the ability to trade shares while still benefiting from the long-term growth of a diversified set of holdings. It’s patient capital at the core—with optionality on liquidity.
That structure solves one of the biggest complaints in traditional private investing: being locked in without options. It lets investors exit when they want—not when the fund says it’s time.
The Future of Private Investing: Embracing Permanent Capital and Long-Term Value Creation
The rise of permanent capital isn’t a flash trend. It’s a signal of where investing is going:
Away from flip-to-exit fund models
Toward platforms built to own and operate
Away from short-term returns
Toward long-term value creation and alignment
As the startup and small business ecosystem continues to evolve, the demand for patient capital will only grow. Founders want alignment. Investors want staying power. Operators want a second chapter.
Legacy exists to provide that.
This isn’t just a theory. It’s how Legacy operates.
It’s how Legacy is structured.
And it’s why the platform was built to last.