Launch A Permanent Capital Vehicle In Guernsey

Originally published in The Lawyer, June 2007

The first permanent capital vehicle (PCV) was launched as a Guernsey limited partnership.

In 2006, KKR (KKR Private Equity Investors LP) launched the first PCV raising $5 billion in capital. KRR’s PCV was established as a Guernsey Limited Partnership and listed the limited partnership interests on Euronext Amsterdam – one of the few internationally recognised exchanges which permit the listing of limited partnership interests.

The KKR success was reflective of:

• the wider investor base that arises from having a listed investment due to the investment restrictions in many pension funds and regulated funds on the level of unlisted investments they may hold in their portfolios,