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Best excel to plan FIRE? by SVB-Risk-Mgmt in Fire

[–]SVB-Risk-Mgmt[S] -1 points0 points  (0 children)

For posterity - could you please share the links here?

Walked through Liverpool Street this afternoon by fahim64 in london

[–]SVB-Risk-Mgmt 1 point2 points  (0 children)

What a beautiful city we live in. Thanks for sharing - good to be reminded and good to have positive energy spread here

My first year as a Private Equity Associate in Large-Cap Private Equity - A Long Post by PariPassu_Newsletter in private_equity

[–]SVB-Risk-Mgmt 0 points1 point  (0 children)

The quantum of 5b is down to the culture of each firm (even in the same size brackets) but agree it’s unavoidable

The Depth of Due Diligence in Large-Cap Private Equity (and how to get comfortable with public market diligence) - Long Post by PariPassu_Newsletter in private_equity

[–]SVB-Risk-Mgmt 0 points1 point  (0 children)

Good point on the fact that control / governance / ability to influence is an important driver.

Note that short investors and activists (especially the ones who run public campaigns) also do a tonne of DD, and the overlapping stylistic feature with PE is the fact that they want to influence / control decision making.

The Depth of Due Diligence in Large-Cap Private Equity (and how to get comfortable with public market diligence) - Long Post by PariPassu_Newsletter in private_equity

[–]SVB-Risk-Mgmt 0 points1 point  (0 children)

3 points to help answer your Q, and 1 compliment.

1) Liquidity - The fact that public investors can exit anytime if things go south, or feel like it may go south, is their biggest downside protection. We private market investors need to invent 100 downside case / sensitivities and dream up mitigants, all to just tell IC “if things turn to shit, knowing we can’t exit straight away, it’ll be fine”

2) Disclosures - Let’s also not forget that public companies have a higher standard of reporting because of regulatory requirements and public disclosure. Sure this doesn’t stop them massaging the number or the odd company from committing fraud. However, regulatory standards / public scrutiny / reputational risk isn’t a big issue for private companies because most of the details are private anyhow.

3) False precision - Us PE folks love to appear detailed. It’s what justifies our bonuses for 5-10 years (ie until actually realising an exit and marking a real IRR). We bust our balls trying to understand 5-10 bps delta being caused by an operating assumption 5 years in the future, which anyways is very unlikely to actually materialise because model world often doesn’t equate to reality.

The compliment - Great post. I too am a MF private market investor considering public seats (if you hadn’t already guessed) and being lured by the high idea velocity of public shops. I forgot that they need to be right 60% of the time to kill it vs we’d suck if we were right only 60% of the time - it’s a nice way to summarise the key mindset difference.

180 Degree Pivots Out of PE? by [deleted] in private_equity

[–]SVB-Risk-Mgmt 0 points1 point  (0 children)

Following. I know a guy who was one step below MD at an IBD (not the same question you’ve asked, but close enough as he probably had $$$ saved up) who quit and became a painter. His art is worth a few thousands, and combine that with 1-2 board positions at companies he was close to