Private Equity: Debunking the Myths | Trym Riksen - Gabler

George Aliferis sits down with Trym Riksen, Head of Portfolio Management at Gabler, to debunk the myths surrounding private equity. They dive into the narrative that private equity offers high returns with low volatility and discuss the reality behind these claims. Trym provides insights into the limitations of private equity data, and the challenges of comparing it to listed assets They also explore the influence of marketing and the democratization of private equity. An eye-opening discussion that separates fact from fiction in the world of private equity.

Watch it on YouTube: https://youtu.be/a0Ag6D0erP0

LINKS
▶️Trym on Linkedin: https://www.linkedin.com/in/trym-riksen-6580952/
▶️The CEM Benchmarks: https://www.cembenchmarking.com/
▶️Ludovic Phalippou's book: https://www.amazon.co.uk/Private-Equity-Laid-Ludovic-Phalippou/dp/B08T7D4ZQ2
▶️Meb Faber study on CalPers: https://mebfaber.com/2023/11/08/should-calpers-fire-everyone-and-just-buy-some-etfs/
▶️Gabler: https://gabler.no/
▶️Spreadsheet with an example of IRR:https://docs.google.com/spreadsheets/d/1qS-CeTR4V5LdC4ti51IOFIBU1sc-adeG2Zf-i_X4RRU/edit?usp=sharing

TIMESTAMPS
00:00 Private Equity Marketing with Trym Riksen
00:55 Discussion on Blackstone's Holiday Video
01:49 The Founding Myth: The Yale Endowment returns
03:15 The misleading nature of Private Equity return figures
06:23 The reality of Private Equity volatility
14:00 The truth about Private Equity diversification
17:11 Private Equity's power of influence
24:48 The role of advisors in Private Equity
29:21 Thoughts on the democratization of Private Equity
31:36 Conclusion and final thoughts

IMPORTANT NOTE: There are risks associated with investing in securities.
Investing in stocks, bonds, exchange-traded funds, mutual funds, and money market funds involve risk of loss. Loss of principal is possible. Some high-risk investments may use leverage, which will accentuate gains & losses. Foreign investing involves special risks, including greater volatility and political, economic and currency risks and differences in accounting methods.
A security’s or a firm’s past investment performance is not a guarantee or predictor of future investment performance.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit investorama.substack.com