Perpetuate Capital, a private capital fund specializing in employee trusts, announced that it will close its newest fund by the end of 2023.
The fund differentiates itself from traditional private equity through a focus on long-term results and a desire to preserve the intent of business founders, according to the company. Perpetuate officials estimate that the fund will close with around $40 million raised, according to an Aug. 23 Perpetuate news release.
The fund's investment model is designed to appeal to socially conscious and purpose-driven businesses.
"Due to its short-term nature, private equity investing is on the back foot because of the higher cost of debt over the next 10 years due to where we are in the interest rate cycle. This is why we're seeing many private credit funds emerging, filling the void left by banks that are pulling back," Perpetuate General Partner Thomas Mallon said in the news release.