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Peter greer's avatar

Jim - if you were smart like David Swenson of Yale and invested in PE pedigree in the 80s 90s -the sweetspot for the genre-congrats . It was absolutely worth the fee structure and lock up .However ,If you invested in the past 10 yrs I suspect your average return gets dragged down. There is 1000X more $ chasing fewer and fewer natural sellers -eg not another PE firm . I saw how they make sausages and with the exception of an occasional spv would not invest in the asset class. I'd run from it . Secondary trade different story .

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Jim O'Donnell's avatar

Interesting but the best performance of all has come from a group in Dallas I began working with about 5 years ago.

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Peter greer's avatar

Thats impressive- cash out or on paper. I assume you invested in other PE partnerships as well?

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Jim O'Donnell's avatar

Yeah & I managed a few funds over the years. I mentored the main partner of the more recent one. They use moderate leverage and employ a build by acquisition strategy with a big focus on operational improvements and upgrading of personnel when needed. Block & tackle.

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Peter greer's avatar

I'm curious what approx size are the funds? Block and tackle unfortunately can turn into hail mary and in the real world there's nothing an investor can do about it . To me judging the guy/firm making the decisions as well as them making a major $ commitment was always the best way to stay out of trouble . Beach house is still the best investment !!!

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