public markets

“End buyers, i.e. The acquirers or public markets, haven't, you know, been as forceful with enforcing price discipline, and so you have this inversion where, like, public, private companies are worth much more than they'd be worth in the public markets.”

“But in the public markets, especially in months like we just had in October, you're able to buy really great long-term outcomes for half off of a multiple you'd be willing to pay for in the private markets.”

“Back when I started in private equity in the nineties, you could get 500 over the public markets. Then it narrowed to about 300. And now the debate today is at one 50 net of cost.”

“It seems like the public markets have become more passive, more of the sort of investing decisions and like providing capital to companies that are growing is occurring in the private markets while the public markets are for mature companies to kind of harvest…”

“Our expected return for private equity is about 400 basis points over the long-term expected return of the public markets. So 10 real.”

“And, you know, when he first told me that he was buying businesses at a little bit north of four times free cashflow, you know, I kind of laughed. I thought, okay, like, so they're going out of business in three years. I mean, in the public markets, that multi…”

“Because we're a stock exchange, we're integrated with the financial system to such a degree that companies that list with us can be guaranteed the same access to the full liquidity of the public markets.”

“I think really most of this is really just a wealth transfer of appreciation from the public markets into the private markets, and many of these people have lower costs of capital, right?”

“Industry demand for new products, especially in public markets, is shrinking with each passing year.”

“When volatility hits in the public markets, I would say in my experience over the last decade in this fund, nine out of 10 times, it has been because of something unrelated to our industry.”

“We do a new vehicle basically every day in public markets. So a new fund or a new SMA for someone or a new version of a fund in a different jurisdiction. And we basically bang one out a day.”

“I would argue it's less risky than the public markets. Like, if you asked me to put another dollar today, In the public markets or with our private managers, and I love our public managers, but it would definitely be in the private markets.”

“There really is no market for a slow growing or declining unprofitable company.”

“When I thought about it, I couldn't think of one other investor who was a woman doing exactly what I was doing. Nobody in the public markets that looked like me, and I said, it's about time that we have a few more of us.”

“Well, computers have arbed out first price discrepancies, but they've also arbed out now time discrepancies. Meaning when you find an idea and you're like, I found it, nobody's in it. Well, no computers are pretty good at using data to find the same idea.”

“Obviously right now we're experiencing a pretty dramatic correction in the public market where I think the public market companies are much cheaper than what we're seeing done in the private market”

“Rather than being accused of ignoring tail events, as people in public markets are sometimes accused, these people at venture capital partnerships only care about tail events. It's all about that extreme disruptive, 10 X, 20 X Outlier. And the middle of the di…”

“That is when, to me, private equity, private markets established themselves. It was the greatest thing that happened to the industry. And I know people will go, that asshole, what's he saying that for such a horrible time. But it's because at that point, every…”

“If duration's our advantage, it doesn't really play in public markets.”

“We don't tend to like larger funds, and we don't like later stage investing, largely because we think that is an area that is sort of more correlated to the public markets, you know, and an arbitrage opportunity, and so at a period of Massive, great inflation.…”

“Private equity outperforms because it's a better form of governance, period. I mean, I get the leverage and I get all that other crap, but it is a better form of governance. You'd much rather be private than public in terms of your ability to do things.”

“The privates market overall consolidates share away from the public markets during downturns.”

“And I think if there is a structural advantage to private markets advantage over public, it tends to be that the lack of liquidity is forcing a good level of behavior that I think is a wonderful thing.”

“We associate power laws with venture, but if you let it play out in public markets, it's also the exact same power law. It's a power of compounding is the key insight.”

“I think biotech is a really interesting place to be investing in the public markets right now.”

“Of every dollar invested since 2000, something like 35 cents has come back, and I'm sure the industry will come good, but as I was sort of looking over the proverbial wall at other asset classes, it's not exactly apples to apples comparison, but for example, i…”

“In the public markets, Ted, you pay a premium to put your own management teams in. In the private market, you get a discount.”

“Public markets have gone from 13 and a half times to 21 and a half times LTM EBITDA. Private equity has stayed consistently between 13 and a half to 14 and a half times.”

“We've seen crazier prices on both sides by far in the public markets than I think you tend to see in the private markets.”

“In the private equity business, the way it works is you have access to a data room. And you have a certain amount of time to understand as much as you can about a company with full access to the information and the management team. So if you were to use an ana…”

“There's one type of smoothing in that evaluations don't occur as regularly as you do in the public market. The other thing that occurs is everything's lagged as well. So both of those things are going to show you to be more diversified than you actually are.”

“Do they have a credible path to generating a three X net return? That's our bogey for private markets. We expect private equity in particular to deliver five to seven percent ahead of public markets over time.”

“If you look at our historical charge-offs versus defaults in the public markets, they're just better over a twenty-year period because of that control”

“I tell my clients at a certain size of wealth, I view what we're doing in the private space as inherently less risky than the public markets. Because if we can back smaller back groups that have depth on the operational side and the financial side, you're actu…”

“It's not clear that you can get the globally diversified portfolio of assets just in the public markets the way you definitely could 25 years ago.”

“There is more persistence in private equity than in the public markets.”

“There is very little money in DC today that's in alternatives or private markets. Small amounts, very bespoke plans, but virtually all of the allocations today are sitting in public markets.”

“On the investing side, we obviously have exposure in the portfolio. We have invested in a lot of the big AI companies and we have exposure to them. Net though, we don't have as much AI exposure as the broader public markets. And that's a challenge from a relat…”

“As time went on, as we saw through the 2000, the passive indexation and ETFs and the capital markets changes in the public market rendered some of those advantages obsolete.”

“90% of real estate in this country is owned outside of the public market. So you've got 10% of the market that trades publicly.”

“The biggest impact of that over the next couple of years is that when private markets unlock for liquidity, the first wave of that money from the institutional market is going to go back to the public markets. It's not going to get recycled in the private mark…”

“I think people will be talking about public markets and the potential for outperformance from active managers because you're teed up pretty well to have a good period of time for active managers.”

“From a math standpoint, if you look back over any 10 year rolling period, Privates have performed publics by 580 basis points. Over three-year rolling periods, 500 basis points. This last three years is one of the rare three-year cycles that hasn't.”

“Given the predominance of indexing in public markets and that talent vacuum into another space, there might be a lot more alpha in public markets.”

“You pair that with a public market that's vastly outperformed, the broad private market measured on, say, a Cambridge index level, and it's causing most people I know to have very difficult conversations around what is the future path of private allocation in …”

“We do discuss and say that privates are not essential. Meaning we should choose to have them because of the return we believe they will deliver over time. And that return needs to be in excess of what's offered in public markets.”