Hold periods shape behavior. When the clock is short, every operating decision is filtered through exit optics. When the clock is long, decisions get honest.
Patient capital is often framed as a virtue of the investor. We think it is more useful to frame it as a constraint on the operator — a constraint that produces better businesses.
When the hold period is open-ended, you make different choices. You hire ahead of revenue. You replace ERP systems that are five years past their useful life. You sunset the legacy product line that is propping up this year’s EBITDA but eroding the franchise. These are the decisions that compound, and they are exactly the decisions that get deferred under a five-year clock.
We hold for as long as the business is the right home for the capital. Sometimes that is seven years. Sometimes it is twenty. The horizon is set by the business, not by a fund cycle.