AI is changing the world in meaningful ways. As investors, we need to think about how to incorporate it into our portfolios.
A tsunami of money has been flooding into private equity. I find this interesting because we seem to be in the late stage of the business cycle, with a significant macroeconomic slowdown (if not an actual recession) coming soon. It raises the question: Is the PE world facing a historic opportunity or a historic threat?
PE funds are now trying to attract money from smaller investors than they have traditionally worked with. And many such individuals are anxious to buy into the PE party. These funds offer options for return and diversification that the retail market has never had. Furthermore, middlemen are busy developing regulation-compliant technologies and platforms to help bring the two sides together. Assuming the trend continues, will private equity hooking up with a larger “public” produce an attractive investment alternative? What should individuals interested in this opportunity know before diving in?
With Silicon Valley Bank having collapsed, I thought it would be a good time to discuss the money supply, how banks create money, and the danger of a bank run. We will use a simple example to demonstrate the dynamic, then apply it to the demise of Silicon Valley Bank.
How do you break into private equity with a nontraditional background (e.g., without any investment banking experience)? I get this question a lot via email. This post focuses on the three things I tell people to focus on as part of the process.