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Why Private Equity Is Ripe for Vanguard-Style Disruption
- stevievee 7y ago"Yin said there are plenty of other simpler, 'passive-like' approaches to investing in private companies to consider, including models that don’t use leverage." PE is debt in today's environment. The funding does not come primarily through investment but through the partnerships that lead to leverage the business would not normally be able to attain.
- crb002 7y agoFirst you would need a PE exchange for liquidity. Good for startup share liquidity pre-IPO also. Price it at auction, employees chose to take the $$ or they have an immediate IRS basis. Most would sell a fraction to cashflow taxes. SEC friction on "public" is bad for the economy. Instead of binary we need the reports/accounting under certain standards on a spectrum from fully private to fully public.
- TuringNYC 7y agoSerious question - why does anyone think PE can be disrupted if techies and techie founders have not been able to disrupt our own broken illiquid equity situation? The only answer can think of is (pessimistically) that the system is broken because it is profitable (to some) to keep it broken for many others. PE wields far more influence Than pre IPO tech equity so I definitely don’t see that being disrupted first.