Asset management and or Private equity invesments

[SAJ-99]

Private Infrastructure - results driven by operational performance of long term global projects rather than short term daily fluctuations in market. Returns split up in appreciation and yield with some of that yield focused on more tax-efficient ROC.
Private Credit - higher yield floating rate debt in private sector. Reduces interest rate risk associated with longer term bonds will achieving higher yield than public markets. Private debt has many areas of credit quality and tier structures.
Venture Growth - think of the OpenAI, Andurils, xAI's of the world. Higher risk; higher return potential.

There is no magic asset class, but private markets can add to an overall allocation to add deeper diversification. These are definitely not recommendations as most folks don't have the liquidity or assets to support them in a portfolio. Most folks would be fine with a core group of low-cost broad based ETFs and a plan.

Being private doesn't make it a "different" asset class. A fund of private debt and public debt are the same place in the cap structure, except the private debt has more expensive fees, is more illiquid, holds more leveraged companies, and has worse investor terms than the public stuff. And you won't get "deeper diversification", whatever that is. If the economy tanks, both will go down. Tricolor and First Brands are the latest examples of that. But if that sounds attractive to people, I guess they can enjoy. This whole thread was about whether or not people should be interested in accessing the private stuff via new structures. Sounds like we agree the answer is "No". Eventually we will see some asset manager get in trouble for mis-marking this private stuff so they can continue to collect the exorbitant fees.

There are problems in public markets too. I watched someone paint the tape of the S&P 500 in the last 10min on Sept 30. Probably betting that the SEC isn't going to enforce stuff like that under the current admin.

 

[1234avea]

Being private doesn't make it a "different" asset class. A fund of private debt and public debt are the same place in the cap structure, except the private debt has more expensive fees, is more illiquid, holds more leveraged companies, and has worse investor terms than the public stuff. And you won't get "deeper diversification", whatever that is. If the economy tanks, both will go down. Tricolor and First Brands are the latest examples of that. But if that sounds attractive to people, I guess they can enjoy. This whole thread was about whether or not people should be interested in accessing the private stuff via new structures. Sounds like we agree the answer is "No". Eventually we will see some asset manager get in trouble for mis-marking this private stuff so they can continue to collect the exorbitant fees.

There are problems in public markets too. I watched someone paint the tape of the S&P 500 in the last 10min on Sept 30. Probably betting that the SEC isn't going to enforce stuff like that under the current admin.

There are definitely differences. But I agree with your sentiment for the most part. As regulations changes and drives demand, fees and access will most likely come down as they have in publicly traded funds. To your point, most folks don’t realize how concentrated their S&P500 fund is.