IPO Cascade

Perpetual Company

In the grand tradition of many charitable foundations and endowments, the perpetual company concept is founded on the principle of eternal survival; a structure that will continue through generations, always earning, always growing, forever stable.

To achieve this, the bye laws and shareholder agreements of the perpetual company contain a code that requires it to secure its future by investing all initial capital in stable investments and use only the returns from those investments as a source of funding for its operational business.

If such a company were to regularly allocate a portion of its investment returns as retained earnings each year, then the company would also secure a consistent growth profile; an extremely valuable proposition for a public company or a company intending to go public.