The Ledger, every show

“We're not seeing systemic problems with private equity. There are very few that go bust. And I think not just because of the corporate veil point, but I think also just the way their own risk management is set up. It's inherently very conservative.”

“Because I, you know, if you take a distress fund or a credit fund, a lot of the things I've been offered, they're taking 10 plus percent risk at least, but they're offering six, seven. Doesn't make sense.”

“Most portfolios, if not all portfolios, including more retail as finance becomes more democratic, will involve some portion of Private markets at some point, whether that's 10%, 30%, leading up to 50%”

“Durations match, broadly speaking, the requirements of the underlying investor. And the reason that you're seeing increasing diversification in those durations is not just because the industry is growing, and therefore it's growing in different ways, different…”

“If there are proven examples over time, Where regulation in a particular sector is not up to scratch. Of course, we should be looking at that, but not just because the owner is a private markets firm, but irrespective of the owner.”

“And I don't think that lobbying is so by implication, so out of control that it has to be reined in for this industry versus either reined in in general or looked at from a broader perspective.”

“They have an amazing network of data, executives, knowledge, know-how, and this gives them a fantastic edge even before you look at things like size and scale. They have great information, and they're able to capitalize on it. That's not something you can just…”

“There's nothing automated about it. There's nothing that a supercomputer can replicate. There's no ETF version of private equity or private markets more generally. It's a people business, and therefore you have to understand The traits and DNA of those people,…”

“I will say, however, that in the mid market, I think you ought to be more careful, because there are a lot of copycat kind of funds, which do exist in the mid market that you do find at the higher end, but I think is perhaps more prevalent in the mid market.”

“As soon as you start to do deals which are like a billion dollars per deal or more, right? It's hard to say that no one else will ever look at that deal Other than you, between the time the idea comes up and you closing the deal. No one's ever going to look at…”

“So right now, one of the best risk returns is in what I call hybrid capital, or some firms call it tactical opportunities, or things that have a lower possibility of default, right? The chance of losing money is lower, and perhaps you give up a bit of upside. …”

“The 12 trillion dollar industry is bigger than the GDP of most nations. And I think it's headed to grow further in the next decade, perhaps to 20 trillion or more.”

“I think what you see with the winners in this business, and I think there's going to be a thinning of the herd. I think there's going to be Slimming now that the conditions are tougher. I think you'll find that those who are not able to perform consistently wi…”

“And the best firms, they're almost better on defense than they are on offense.”

“If you do one strategy, if you're a one trick pony, even if you're amazing at it, you're going to limit yourself in scale until you start to do other things.”

“And so this, I think, is a huge information advantage because not only does it help you scout for new opportunities, it also helps you, I think, defend your existing investments better if you know what's coming down the road.”

“Historically, some of the best returns have been found in smaller pockets of the market that have been less mined than the larger pockets.”

“In fact, some of the things I'm looking at to invest in for my family office right now are actually a lot smaller. Then the mega funds, simply because the numbers are out of this world. I mean, they're producing incredible numbers.”

“And then equally, if you look at the size and scale of this industry, 12 odd trillion on its way to 20 trillion across private markets in the next decade, this is an important part of the economy, period.”

“You need to, as somebody with a retirement account, know about Blackstone, Cardile, etc. You should, because these are kind of the equivalent of those big tech names that I talked about. It's big finance, or it's what I call, you know, mainstream active asset …”

“There are 50,000 dollar tickets. There are 20,000 dollar tickets. There are 10,000 dollar tickets coming out. And it's not fully available to retail, but it's coming.”

“The firms that looked at insurance, banks, ahead of everybody else have found that most folks at the similar scale have copied them since. And that tells you something. They had an edge. They had an advantage. It was proprietary. They had an idea. At the time …”

“And a lot of buyouts these days, as we found in the financial crisis, are being done with less leverage or in some cases no leverage.”

“And then I think at the end of the book, there's a chapter where the private equity firm actually looks to buy out assets from another firm that's in trouble. I think we're going to actually start to see a little bit of that.”

“The industry has changed from institutional investors going into funds with perhaps less involvement to now co-investing alongside funds at more attractive terms. To some very large institutional investors having their own invest direct investment teams, often…”