If I was a UHNWI...

Discussion in 'Trading' started by wutangfinancial, Jul 29, 2008.

  1. I'd be in private equity right now. Everybody on here keeps asking-where do I put my money? 5 years out, any newly formed private equity fund is going to make a killing. The last time PE funds were enjoying 20%+ IRR was following the dot com crash. Valuations are low enough now that companies with economic moats/serious brand equity are selling for steep discounts. The problems affecting management culture in the States have not gone away-managers are overly focused on the short term, often cost cutting in the form of reducing research and human capital to deliver eye popping quarters, and hurting long term growth. Sarbanes Oxeley continues to hamper manager's ability to quickly and efficiently allocate capital. The credit crisis hasn't changed the main premises that led private equity to become such an appealing space in the first place.

    I'm advising my family members, who have the means to do so, to look into PE. Rothschild would be proud.