Asset management and or Private equity invesments
- Thread starter schmalts
- Start date
SAJ-99
Well-known member
Asset management? That is not specific enough. Can you elaborate?
Any firm or ETF or fund that deals in Private companies instead of public traded stocks
Private Equity - Goldman Sachs Asset Management
Discover our Private Equity program, established more than 30 years ago, that seeks to harness the scale and power of the global Goldman Sachs platform to source differentiated investments and accelerate value creation for our portfolio companies.
SAJ-99
Well-known member
My rule is once they start selling something to the retail/401K holder, it is a bad idea.
What I am hearing is the IPO market is slow and some of the large Institutional players want money to invest in new fund. The % allocations in PE are getting at or above preset limits and meeting further capital calls is getting tough. Wall street has been selling these PE and Private Debt asset classes hard for the last 24 months. The new administration has indicated a willingness to allow some funds in 401k. You are providing the big players liquidity and I highly doubt you are getting paid to do it. I would advise just saying 'No thanks'. Fees, lack of liquidity, lack of transparency are all problems. If there is something that causes a rush for liquidity, these things are a problem. I have seen names on institutional books that have been there since the dot.com days.
What I did, and think is still a better idea, is buy a basket of stocks of the firms that collect the fees on the funds and not in the funds themselves. The biggest are BX, KKR, CG, GS, BN, APO. I don't own them anymore because they all trade at pretty rich multiples, but I keep them on the watch list. I think BX reports this week.
Finding performance on the actual PE funds is hard. I found this one below. Compare it to the stock of KKR and it is pretty clear the choice.
idirectpmfund.com
What I am hearing is the IPO market is slow and some of the large Institutional players want money to invest in new fund. The % allocations in PE are getting at or above preset limits and meeting further capital calls is getting tough. Wall street has been selling these PE and Private Debt asset classes hard for the last 24 months. The new administration has indicated a willingness to allow some funds in 401k. You are providing the big players liquidity and I highly doubt you are getting paid to do it. I would advise just saying 'No thanks'. Fees, lack of liquidity, lack of transparency are all problems. If there is something that causes a rush for liquidity, these things are a problem. I have seen names on institutional books that have been there since the dot.com days.
What I did, and think is still a better idea, is buy a basket of stocks of the firms that collect the fees on the funds and not in the funds themselves. The biggest are BX, KKR, CG, GS, BN, APO. I don't own them anymore because they all trade at pretty rich multiples, but I keep them on the watch list. I think BX reports this week.
Finding performance on the actual PE funds is hard. I found this one below. Compare it to the stock of KKR and it is pretty clear the choice.
PERFORMANCE
Historical returns, nav and distributions for the iDirect Private Markets Fund
idirectpmfund.com
WyoCoalMiner
Member
- Joined
- Nov 14, 2024
- Messages
- 55
I had a decent amount of BAM, Brookfield Asset Management. Sold all my position late last year. Did fine, but there are better options, IMO.
I can’t speak for the market as a whole, but the IPO market in the healthcare space is extremely slow.
I have seen some recent articles indicating a bit of hope for a better 2025, but I wouldn’t call the sentiment bullish by any means.
npaden
Well-known member
I have clients that have been sold the koolaid and bought into PE and Alternative Investments with Morgan Stanley and Goldman Sachs.
Big minimums and required future commitments, TERRIBLE transparency and accountability. End result was lower average returns compared to the overall market.
Big minimums and required future commitments, TERRIBLE transparency and accountability. End result was lower average returns compared to the overall market.
Both BX and BLK were nice 40%-50% gainers the last year and change for me in the general space. Got out of BX earlier this month, keeping an eye on BLK with all the current craziness.
Have been tempted by 2 ex-colleagues that are turnaround guys now to get into some PE the last 2 years, but as @npaden alludes to, it's something of a black hole with generally huge committments.
The more I get into the rabbit holes, the more I just consolidate into ETF's and broad-based MF's.
westbranch
Well-known member
I have some clients in PE funds that through "small" specialized wealth managers with various strategies that seem to do well. But small parts of their overall investments and not that much better than ETFs and MFs due to the higher risk and issues mentioned in prior posts.
One guy sold his business to smaller startup PE fund and did a partial rollover at their $1M minimum. Tax efficient and he was an early investor so huge returns for him. But still a large amount of risk.
One guy sold his business to smaller startup PE fund and did a partial rollover at their $1M minimum. Tax efficient and he was an early investor so huge returns for him. But still a large amount of risk.
NDGuy
Well-known member
- Joined
- Apr 26, 2018
- Messages
- 1,950
VOO/VTI/VGT and chill
BigHornRam
Well-known member
Trump wants to close the carried interest tax loophole, a longtime target of Democrats
The Trump administration's list of tax priorities includes eliminating a loophole that benefits private equity firms, hedge funds and other big investors.
www.cbsnews.com
Pucky Freak
Well-known member
If I was overcharged in fees, etc. on PE or boutique small-investor offerings I’d be completely clueless w/ no reference point. Index ETF’s and plain vanilla MF’s are boring, but the returns and fees are competitive, so that is where my investment money goes.
As a general rule, small individual investors are paying high transaction fees to participate in the sorts of investments you referenced. The multi-Bn pension funds, governments, and other large clients are negotiating reduced transaction costs, as the broker makes their money on volume, whereas the mom and pop investors it’s not worth the broker’s time unless the fee is high enough to make up for the tiny volume.
As a general rule, small individual investors are paying high transaction fees to participate in the sorts of investments you referenced. The multi-Bn pension funds, governments, and other large clients are negotiating reduced transaction costs, as the broker makes their money on volume, whereas the mom and pop investors it’s not worth the broker’s time unless the fee is high enough to make up for the tiny volume.
Same here
Similar threads
- Deleted member 52098
- Money and Finances
