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"If I can access different types of capital pools," he said, "I can have continuous access to capital.
He started with Michael Milken's junk bonds; by the early twenty-first century, it seemed as if half the hedge funds, private-equity funds, and other high-risk, high-reward capital pools were heavily into Las Vegas.
Now Alistair Darling, chancellor of the Exchequer, is studying plans to create a legal framework to allow banks and other lenders to issue covered bonds, and to make them attractive to investors, in order to help lenders create capital pools that would finance longer fixed mortgages.
Venture capital and private equity funds, which control much larger capital pools than crowdfunding, also invest in circular models, however, their requirements for high growth and relatively fast payback horizons can mean this source of finance is limited for circular businesses.
Through one of these vehicles you can participate in either leveraged buyouts or venture capital pools.
UC Investments has about $100 billion in its investment portfolio, including a pension fund, an endowment and other capital pools.
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In Mr. Sufi's view, one reason is that not everyone is able to dip into this overflowing capital pool.
"If they found a way to do small deals economically, that would be interesting because it could greatly increase the available capital pool," Baca says.
Some migrants, for instance, send home money to savings accounts at small bank-like microfinance institutions, which use the resulting capital pool to lend to local entrepreneurs.
Bain predicts the global capital pool will swell to nearly $1 quadrillion by the end of this decade, creating an ocean of "capital superabundance" 10 times greater than the world's underlying gross domestic product.
From a legal perspective, the existence of a capital pool may not comply with regulations.
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