Chapter
Private Equity and the Haves and Have Nots
30:46 - 38:55 (08:09)
A look into private equity funds shows that 40% of their capital is deployed in struggling businesses, resulting in 50% losses. This raises questions about the future of private markets and the likely division between those with available funds and those without.
Clips
The contrast between the haves and the have nots in private markets is likely to shape its future dynamic.
30:46 - 35:16 (04:30)
Summary
The contrast between the haves and the have nots in private markets is likely to shape its future dynamic. On one hand, the haves, consisting of venture funds that need to be deployed over the next few years, will have significant amounts of money at their disposal, while on the other hand, the have nots may have to rely on the liquidation of their companies or the intervention of private equity firms.
ChapterPrivate Equity and the Haves and Have Nots
EpisodeE80: Recession deep dive: VC psychology, macro risks, Tiger Global, predictions and more
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
Chasing valuation instead of focusing on business performance can lead to significant losses for venture funds.
35:16 - 37:49 (02:33)
Summary
Chasing valuation instead of focusing on business performance can lead to significant losses for venture funds. Many venture investors have deployed capital too quickly, resulting in overvalued companies that may not have the potential to reach necessary revenue levels.
ChapterPrivate Equity and the Haves and Have Nots
EpisodeE80: Recession deep dive: VC psychology, macro risks, Tiger Global, predictions and more
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
Out of the over 1,200 private equity, growth, crossover, and contractor funds raised since 1994, only around 22 of them have been able to generate returns of more than 2-3 times the initial investment.
37:49 - 38:55 (01:05)
Summary
Out of the over 1,200 private equity, growth, crossover, and contractor funds raised since 1994, only around 22 of them have been able to generate returns of more than 2-3 times the initial investment. This data shows that investing is extremely difficult, and in an upmarket, it can appear easier than it actually is.