Q2 · UPSC current affairs · 7 October 2026 · News · SME Growth Fund Equity Capital Commitment

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With reference to the financial terms associated with enterprise funding, what does 'Patient Capital' signify?

A Government subsidies provided directly to sick industrial units to clear pending employee wages.
B Emergency liquidity support granted by central banks to commercial lenders during a banking crisis.
C Short-term venture loans provided exclusively to early-stage micro enterprises with monthly interest obligations.
D Long-term capital where the investor expects financial returns without demanding quick exit horizons.

Correct answer: (d) Long-term capital where the investor expects financial returns without demanding quick exit horizons.

Explanation

Option D is correct because Patient Capital refers to long-term capital where investors expect financial returns without demanding quick exit horizons. Options A, C, and D misrepresent the concept of patient capital.

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