Why would people buy PE firm stock when they can invest in the funds
Which one makes higher returns - invest in the illiquid funds or buy blackstone stocks? What are the pros and cons of each?
Trending Content - Private Equity Forum
| +177 | Future of PE | 38 | 9h |
| +33 | Best industry/job for entrepreneurship? | 11 | 1d |
| +26 | What are you actually using AI for in PE? | 9 | 14m |
| +19 | Burn Out in PE - What Comes Next? | 3 | 2d |
| +15 | Buyside in London with nice WLB and pay | 8 | 5h |
| +12 | Value Creation Initiatives (That aren't add-ons) | 3 | 23h |
| +10 | Undergrad summer PE analyst positions | 3 | 3d |
| +9 | Question about HH 2028 | 2 | 2d |
| +9 | 2028 Oncycle PE | 11 | 2d |
| +8 | London Exits: What's better for Top PE Exit? | 4 | 6d |
Career Resources
Well, do you want to be a customer or an owner?
Owning Blackstone shares are likely the better trade in the medium / long-term for many reasons but to distill it into one - none of Blackstone's funds are likely to (and arguably are even designed to) generate massive outperformance anymore, they're designed so that the largest LPs in the world has one easy place to stash all their money hoping for a reasonable return - and in exchange they pay ~1.5-2% management fees every year.
So it is very reasonable to see a world where Blackstone's funds generates pretty average returns yet vacuums up AUM. This is kind of like being the only dentist in town. The dentist isn't the best but does an adequate job for her customers. Would you rather be a customer or the dentist?
Earum et blanditiis aut. Iure placeat voluptatum veritatis. Praesentium temporibus sint mollitia nihil. Laboriosam aut qui quod et necessitatibus cum sit repellat.
Nesciunt deleniti ratione eveniet aut. Sequi dolorem aut eum aut.
Et rem cum laudantium dignissimos. Voluptas et et modi fugiat quo est. Ex cum aut possimus est libero. Autem voluptas nihil reprehenderit et sed fugit nisi. Est repellendus consequatur non enim reprehenderit mollitia vitae.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...