20-Year Investment Cycles?

Last week, I noted a cleantech panel comment that some European infrastructure funds were proposing 15-year and 20-year investment cycles. While unusual, it apparently isn’t novel. Nor is it only for infrastructure.

It appears that New York-based buyout firm Lindsay Goldberg effectively has a 20-year investment cycle for its third fund, which closed earlier this year with $4.7 billion in capital commitments. The official fund term is 10 years, but a source says that it includes 10 one-year extensions at the GP’s discretion. As the firm says on its website:

“We can invest capital in a business for up to ten years, or twice the duration of most funds; we can be partners in a business for up to twenty years, or twice the duration of most funds.”

I had expressed skepticism that LPs would bite at such a long-term capital tie-up, but I stand corrected. Lindsay Goldberg’s money came from a variety of LP sources, including public pension plans in Canada, Indiana, Louisiana, New York and Wisconsin. Wonder if this could become a trend, particularly in areas like reneable energy…

Lindsay Goldberg did not return requests for comment.