Patient Capital

The Challenges and Promises of Long-Term Investing

Victoria Ivashina, Josh Lerner

• Publisher: Princeton University Press
• Year: 2019
• Print ISBN: 9780691217086, 9780691186733
• eBook ISBN: 9780691190037
• Topic: Business
• Subtopic: Decision Making
• Index: Business

How to overcome barriers to the long-term investments that are essential for solving the world's biggest problems

There has never been a greater need for long-term investments to tackle the world's most difficult problems, such as climate change and decaying infrastructure. And it is increasingly unlikely that the public sector will be willing or able to fill this gap. If these critical needs are to be met, the major pools of long-term, patient capital—including pensions, sovereign wealth funds, university endowments, and wealthy individuals and families—will have to play a large role. In this accessible and authoritative account of long-term capital investment, two leading experts on the subject, Harvard Business School professors Victoria Ivashina and Josh Lerner, highlight the significant hurdles facing long-term investors and propose concrete ways to overcome these difficulties.

Presenting the best evidence in an engaging way by using memorable stories and examples, Patient Capital describes how large investors increasingly want and need long-run investments that have the potential to deliver greater returns than those in the public markets. Yet success in such investments has been the exception. Performance has suffered from both the limitations of investors and the internal structure of their fund managers, often resulting in the wrong incentives and a lack of long-term planning.

Yet the challenges facing long-term investors can be surmounted and the rewards are potentially large, both for investors and society as a whole. Patient Capital shows how to make long-term investment work better for everyone.

Table of contents

• Cover Page
• Title Page
• Copyright Page
• Contents
• Preface: Private Capital 101
• Acknowledgments
• 1. The Need for Investing Long-Term
• 2. The Most Important People in the Room
• 3. The Long-Term Conundrum
• 4. Investing as if the Long Term Mattered
• 5. The Genesis of Private Capital
• 6. The Fund Manager’s Challenge
• 7. Revisiting the Private Capital Partnership
• 8. The Best (or Worst) of Both Worlds
• 9. The Future of Long-Term Investing
• Notes
• Index