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 sel…
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 .
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.
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 !!!
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 .
Interesting but the best performance of all has come from a group in Dallas I began working with about 5 years ago.
Thats impressive- cash out or on paper. I assume you invested in other PE partnerships as well?
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.
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 !!!