We Study Billionaires - The Investor’s Podcast Network

TIP663: The Truth About Private Equity w/ Ted Seides

12 snips
Sep 27, 2024
Guest
Ted Seides
Ted Seides, former president of Protege Partners and author of "Private Equity Deals," dives into the explosive growth of private equity, now a $6 trillion powerhouse. He discusses why it has outperformed public equities and the shifting perceptions about its impact on jobs. Ted highlights strategic decisions in notable deals like Apollo's acquisition of Yahoo and KPS's revival of TaylorMade. He also explores how interest rate hikes are reshaping the landscape and who should consider adding private equity to their portfolios.
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INSIGHT

Buffett's Concerns

  • Warren Buffett highlights concerns about dishonest return calculations in private equity.
  • He advises pension funds to exercise caution with alternative investments due to high fees.
INSIGHT

Illiquidity and Behavior

  • Locking up capital in private equity removes behavioral biases like chasing performance.
  • Illiquidity prevents impulsive decisions driven by short-term market fluctuations.
ANECDOTE

Bad Reputation

  • Private equity's bad reputation stems from sensationalized media and lack of transparency.
  • While job losses and cost-cutting occur, they also represent a small percentage of overall activity.
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