FinTechs collapse, Blackstone grows, and #FireGaryGensler trends
Your Weekend Edition of Private Capital Insider
Welcome to the Weekend Edition
When we decided to launch our free newsletter, Private Capital Insider, we had a simple goal in mind…
Help our readers learn how to accomplish their financial goals by diversifying into private market opportunities.
During the week, you’ll continue to get more investor education from Jake Hoffberg on how to play what he calls “The Great Game of Private Capital.”
But we also promised that this newsletter would be your “passport” to the wider world of Private Capital.
That’s why every Saturday, we’re going to send you this “weekend edition” that gives a look back at all the most important news stories and trends in Private Capital.
Generally speaking, here’s what we’re tracking as we search new opportunities to list on the Equifund Crowd Funding Portal.
The Gameboard: What is the current state of the game in banking and capital markets? Who are the active bank (and non-bank) lenders, financiers, and investors?
As liquidity increases (decreases) along with the cost of capital, this creates enormous disruptions across both Public and Private markets.
Understanding how the Banking and Capital Markets Ecosystem works is key to understanding why certain investment opportunities are available for small balance checkwriters.
The Players: What are the big names in Private Capital putting money into?
There’s a reason the financial media is so interested in what the so-called “smart money” is doing. While we’ve clearly seen that even “smart” money is capable of horribly dumb investment decisions…
In the Great Game of Private Capital, they are the ultimate insiders who have the best information about what’s really going on. But most investors have don’t know much about firms like Blackstone (which we’ll talk about today).
Our goal is to keep you in the loop on what’s happening with America’s largest asset managers and how their moves drive the broader Private Markets.
The Scoreboard: What asset classes/strategies are working right now?
Here’s the nice part about Public Markets. If there’s something “hot” going on in the markets, its relatively easy to put a short-term trade on and hope for the best.
Private Markets are different. We’re probably going to be in a deal for 2-5 years. This means the hot Private Capital strategy you see in the news might not make sense to enter any more today.
That’s why we’ve got to “read the tea leaves,” and decide if we think the reported returns are actually real, if the trend will continue, and is that a strategy we can reasonably implement with a retail shareholder base.
And last but not least…
Rule Changes: What’s going on in Washington, and what impact new policies and regulations have on either Private Capital as a category (or retail investor access to it).
Every now and then, the “referees” decide to throw a curveball, and change up the rules of the game.
Sometimes, the government decides they want to spur market participation by offering tax incentives or looser regulations…
Other times, they propose new policies and regulations that only serve to entrench the incumbent's market position (courtesy of the “revolving door” and lobbying).
Our mission is to take all of this information into consideration as we look for our next opportunity.
Let’s dive in,
-Jordan Gillissie
CEO, Equifund