With people like Steven Schwarzman at Blackstone or Henry Kravis at KRR, it seems clear that these individuals were incredible visionaries who developed a massively profitable investment vehicle that has spawned new industries and changed financial markets forever. To this day, PE funds continue to raise larger and larger funds and kids on WSO consider it to be the pinnacle of finance. It seems that everyone wants to get exposure to PE from both an LP and GP perspective.
But it makes me wonder, what are going to be the industries in finance that kids will be clamoring over on this forum in 10 years. It seems that once upon a time it used to be trading/HF's (Liar's Poker) and people like George Soros, Julian Robertson, or Ken Griffin were the people everyone wanted to be like. Investing in public markets was cool and everyone wanted in. Today it seems that PE has filled that role and it seems unlikely to change any time soon.
But that said, I'd love to know if people think that PE will continue to reign supreme in the long run or if something new is on the horizon. What do you guys think is going to be the thing that creates the type of Rubenstein's, Leon Black's, or Robert Smith's that we idolize today.
Cryptocurrencies lmao
Onlyfans
Idk if there will be another relatively accessible asset class like PE. The big ones that come up will probably be more niche and require additional professional training / degrees. One that comes to mind for me is litigation finance.
Infra PE - the US needs a massive overhaul of it's infrastructure and the private market may be able to provide the outcome that the govt cant
That's what I'm guessing. P3 market in the US isn't as developed as other countries, wondering if that could change in the future. For what it's worth, the Purple Line light rail just outside DC is a P3 and it looks like a judge ordered them to halt construction.
What do you think has been the biggest hold up for infra so far? You could make the argument that the infrastructure of the US has been poor for a while now and despite the fact that everyone talks about it and we have an "infrastructure week" on Capitol Hill every year, few things seem to change on that front. Just wondering what the catalyst would be.
I think you’re spot on. The moment clean energy is cheaper than fossil fuels it’s over with. New charging stations, roads, electrical grids, public transportation. Could be huge!
COLIVING
I interviewed at a new place that closed their first coliving deal last year. Did not get the job, but I think I got the last laugh.
SPACs. There's SPAC mania right now, for good reason. Did you know that there are currently 50% less public companies than there were in the year 2000? SPACs let the retail investor participate at the institutional investor ground floor -- at equivalent IPO pricing. You don't have to wait for the issuance's first trade to open 80% up on the first day before having a chance to place a bid. They are incredibly lucrative for the SPAC sponsor, potentially very lucrative for retail investors, and the companies themselves benefit through a shorter pathway to the public market.
.
I'm interested in learning more about this. Is it really a hot area or already saturated? Any potential good trades?
It's hot AND saturated. It suddenly became a renewed fad and there are now something like 300 SPACs. But not near enough companies worth taking public.
Hilarious how PE firms that spent decades convincing companies the merits of going private are now raising SPACs to take private companies public.
Do direct listings go hand in hand with this big yo a lesser degree? Palantir today will be like that, Spotify notably did in the past.
I was thinking this too.
I think SPACs need a good deal of re-working from their current form to become a more viable long-term investment vehicle, although there are some steps in the right direction with modified structures like what Ackman is doing. They're great for the sponsor because you make a killing just by doing a deal regardless of its merits, but it creates some pretty glaring conflicts of interest that ultimately end up hurting those participating retail investors (the median completed SPAC deal has actually lost money for investors). I get the sense that the barriers to entry are pretty limited as well so there's a lot of people that have never done this before and would have no business running a PE fund for example, but are out there setting up SPACs
Cannabis
Altenative credit and something to do with climate change and infrastructure.
Could you explain the alternative credit piece?
DeFi
What about secondaries?
It’s already blowing up, it’s pretty interesting. I think it will only be ‘secondary’ growth though of course and consolidated in certain top shops
Impact investing possibly
I’m thinking some form of democratized access to investing in alternative assets at scale. I’m surprised it hasn’t started already , but it is complicated.
Some form of cap raising through crowdfunding or whatever, or banks offering that product to regular people and taking a cut like a FoF would- THAT would be smart (they prolly do it already for HNW clients but still)
So basically onlyfans
I read an article on Bisnow, I think last year, how some hotel/office building in the UK was sold, and shares in the building were sold, like a reit but for individual buildings.
Ag Investing
LMM PE
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