Family offices cannot replicate large-cap direct PE with two-person teams
Matt Botein · Matt Botein – Flexible Investing and Institutional Challenges (Capital Allocators, EP.88) · Feb 25, 2019 · at 52:53
Matt Botein, co-founder of Gallatin Point Capital and former CIO of BlackRock Alternatives, critiques efforts by small family offices to internalize direct private equity investing.
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“Having said that, I'd be pretty critical of some of the efforts to try to internalize and do it directly. Not that the people who are doing it aren't great, but if you look at Blackstone, I don't know how many people they have in the private equity department today. It was 40 when I started. I bet it's a 150 today. You see some family offices, for example, trying to do it with two people, and I think it's kind of unrealistic to think, no matter how good those two people are, that They're gonna be able to manage a portfolio, source, finance, oversee a portfolio. In the manner that a Blackstone can.”
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