About this episode

Don and Tom discuss the misconceptions surrounding private equity and its supposed advantages over public market strategies.

Private equity gets sold as exclusive, sophisticated, and “what the smart money does,” but the reality is far less compelling. Don and Tom break down the illusion: limited transparency, questionable valuations, high fees, and serious liquidity risks—all for returns that barely edge out (if at all) simple public market strategies. They argue that the supposed advantages—like the “illiquidity premium” and diversification—don’t hold up under scrutiny. The episode then pivots to smart listener qu...

People in this episode

Host: Don McDonald

Guest: Tom

Topics covered

• private equity
• investing myths
• market strategies
• liquidity risks
• valuation
• fees

Keywords

• private equity
• smart money
• investing
• liquidity risks
• valuation
• high fees
• market strategies

Mentioned in this episode

Organizations: Private equity

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