We Study Billionaires - The Investor’s Podcast Network TIP502: How to Run Your Own Private Equity Portfolio w/ Darin Soat
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Dec 8, 2022 Darin Soat, Director of Content at Linqto, shares his expertise in private equity investing. He discusses the evolving landscape of investment banking and why investors should consider private equity in their portfolios. The conversation dives into how democratization is reshaping access to this asset class and the mechanics of investing through platforms like Linqto. Additionally, they touch on the current market dynamics, including how billionaires navigate high interest rates and liquidity risks in private equity.
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Discounted Shares on Linqto
- Linqto offers shares at a discount to prior valuations because they acquire them from VCs rebalancing portfolios.
- This allows VCs to shift capital to other companies without signaling negative sentiment about the company.
Investment Mechanics on Linqto
- On Linqto, investments are made through a Special Purpose Vehicle (SPV) to keep company cap tables clean.
- Investors own shares proportionally within the SPV, and shares are settled into brokerage accounts upon liquidity events.
Democratizing VC and Fairness
- Private market growth raises fairness concerns about limited accredited investor access.
- Venture capital historically outperforms public markets, leading to questions about wealth disparity.