The Case for Patient Capital in a Short-Term World

Most of the private capital world is built on a clock. A typical PE fund raises committed capital, deploys it over three to four years, and begins harvesting returns by year five. The pressure to exit — regardless of whether a business is still accelerating — is baked into the structure. We have watched talented management teams make suboptimal decisions for no reason other than a fund's internal timeline. That observation is what led us to build something different.

The Peixoto Group operates with permanent holding periods. We acquire businesses in the United States and Brazil with the explicit intention of never selling them. There is no fund to wind down, no limited partners expecting distributions on a fixed schedule, and no artificial exit pressure. When we tell a founder or management team that we are building alongside them for decades, we mean it — and that changes every conversation that follows.

The compounding advantages of patient capital are not theoretical. When a CEO knows the ownership horizon is measured in decades, capital allocation shifts decisively toward long-term value creation. R&D budgets stop getting trimmed to hit a quarterly EBITDA target. Hiring decisions favor builders over caretakers. Customer relationships deepen because the business is not perpetually in transition mode, waiting for the next sponsor to arrive with a new hundred-day plan.

Where we diverge most sharply from traditional PE is in what we do after we acquire. We deploy enterprise-grade operational infrastructure — proprietary financial systems, cross-border legal frameworks, integrated technology platforms — into every portfolio company. These are not cosmetic improvements designed to dress up a business for resale. They are structural investments that typically require 18 to 24 months before their full impact is visible in the numbers. A five-year fund cannot afford that runway. We can.

This infrastructure becomes a compounding edge. Once a business is running on robust financial controls, automated compliance, and modern ERP systems, the incremental cost of scaling drops significantly. The second warehouse, the third geography, the next product line — each expansion is faster and less risky than the last because the operational backbone already exists.

We also think deeply about where we operate. The US–Brazil corridor is one of the most underexploited axes in private capital. Brazil's economy is the largest in Latin America, with a rapidly professionalizing middle market that is underserved by institutional investors. Our bilingual, bicultural team operates natively on both sides of that corridor, and our legal and financial infrastructure is purpose-built for cross-border complexity. That is not something a generalist fund can replicate with a local advisor.

Patient capital is not passive capital. We are hands-on operators, embedded in the businesses we own, accountable to their employees and customers for the long term. The thesis is simple: remove the artificial constraints imposed by fund structures, invest heavily in operational foundations, and let compound growth do what it does best when you give it time. We believe the next decade of results will make the case more clearly than any whitepaper ever could.