Chapter
Evaluating the Potential Returns of Rolling Funds
50:14 - 56:28 (06:14)
The potential returns of rolling funds vary, with a bull case of 7x, 10x, or 15x on returns, and a bear case of getting back less than what was initially invested. The returns are highly dependent on the general partner and the success of the underlying investments, which can range from pre-seed to unicorn or decacorn stages.
Clips
The potential return for private equity firms can range from beating the public market to receiving seven to fifteen times the amount invested, with the bear case being money being locked up and potentially receiving less than what was invested.
50:14 - 52:51 (02:37)
Summary
The potential return for private equity firms can range from beating the public market to receiving seven to fifteen times the amount invested, with the bear case being money being locked up and potentially receiving less than what was invested.
ChapterEvaluating the Potential Returns of Rolling Funds
Episode#105 with Avlok Kohli and Xavier Helgesen - Leading AngelList Ventures and Buying Businesses Like Berkshire Hathaway
PodcastMy First Million
Investing in pre-seed/seed stage companies can result in 1000x or 10,000x returns on capital but requires access to the best companies and good judgment.
52:51 - 56:28 (03:37)
Summary
Investing in pre-seed/seed stage companies can result in 1000x or 10,000x returns on capital but requires access to the best companies and good judgment. Investors can outperform the public market by investing in funds that offer access to such companies.