Invest Like The Best
Episode 189 Great Migration Public to Private Equity
Invest Like The Best

Episode 189: Great Migration Public to Private Equity

Invest Like The Best

Episode 189

Great Migration Public to Private Equity

Michael is the Head of Consilient Research at Counterpoint Global. We cover the reasons behind the shift from public to private investing, the most significant changes in capital markets, and the rise of intangible assets.

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[00:02:27] – (First question) – Motivation for writing the book from public to private equity

[00:04:48] – Size of the public vs private markets

[00:07:20] – History and changes in the public to private markets

[00:12:00] – Public market vs venture capital returns

[00:16:48] – Persistence of returns 

[00:20:01] – Role of price and EBIDTA on the returns of a buyout

[00:23:31] – How buyout firms are sourcing the debt

[00:29:31] – Transition to businesses relying on intangibles

[00:36:21] – Superstar firms and increasing returns

[00:42:38] – Role of monopolies in creating network effects

[00:04:52] – The allocators perspective in these investments

[00:49:16] – How does this all impact public market active management

[00:51:54] – Advice to young people getting into the investment industry 

[00:53:30] – Other areas he is researching/looking into 

[00:55:44] – How investment work and Santa Fe research influence each other

[00:56:54] – Investors to learn from

Great Migration Public to Private Equity

Introduction

Patrick
Our guest this week is Michael Mauboussin, the Head of Consilient Research at Counterpoint Global. Michael is an all-time favorite guest here on the show, and this is his fourth appearance. We discuss one of the biggest topics in the world of investing. The shift from public to private markets that has taken place over the last several decades. We explore the reasons for the shift, the biggest overall changes in capital markets, and what the future may hold. Along the way we explore other fascinating topics, like the rise of intangible asset investment, employee-based compensation as a form of financing, and more. If you enjoy this conversation, I urge you to read Michael's paper on the topic, which will be linked in the show notes. Please enjoy this great conversation with Michael Mauboussin.

The Transition From Public to Private Equity

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