4 ms·

> LPs are the real decision-makers on capital allocation is this true? afaik they hand over their money and trust the partners to allocate > and almost all of

• sirspacey 3y ago
  It’s hard to grasp the scale of this. The top 100 pension funds have $17T (trillion) in assets: https://www.visualcapitalist.com/worlds-100-biggest-pension-funds/#:~:text=Despite%20economic%20uncertainty%2C%20pension%20funds,8.5%25%20over%20the%20previous%20year https://www.visualcapitalist.com/worlds-100-biggest-pension-.... The total money supply is estimated at $48T: https://www.gobankingrates.com/money/economy/how-much-money-is-in-the-world/amp/ https://www.gobankingrates.com/money/economy/how-much-money-... While in theory LPs are “hands off,” in reality you don’t get to raise another fund if you aren’t giving them annual updates that they like. It’s similar to the level of influence VCs have on startups - much more impactful than you’d expect till you are sitting on a board as a founder & realizing you are constantly having to lobby for the direction you are taking the company in. There’s not a taxpayer-base on earth that can bailout all of their pensions. That’s some clever financial engineering & debt transfer to money printing, but as we are all now aware those global limits have been hit. Everyone answers to someone.