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Today, we’re chatting with Daniel Rasmussen, a founding partner at Verdad Advisors. Daniel was a member of Forbes 30 under 30 at Forbes. His fund aims to replicate private equity returns in the public markets by using research and quantitative methods to build a portfolio of leveraged companies.
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More Stories on PE Replication
Fundraising by private equity funds will set a record in 2019. As of last month, PE funds have raised $248 billion of new commitments. There were still two months left in the year. Blackstone (BX) had the most substantial raise at $27 billion for its latest fund that closed in September. Advent International raised a $17.5 billion fund that closed in June. And Brookfield (BAM) just announced the closing of a $9 billion fund.
KKR earnings came out this week. If you read the headlines surround the recent earnings report form KKR and Company (KKR), you would think the world had ended for the private equity and alternative investment firm. While earnings did drop 23% year over year, this was implied because the company did not sell many assets to generate incentive fees in the quarter. The media loved the topic, but it didn’t come up n the analyst and investors call in any significant way at all.
The Blackstone earnings report is always an important quarterly event. Over my years in the investment business, I have learned to watch what people are doing with their money instead of what they say they are doing.
Private equity replication represents a unique opportunity for investors to avoid the high costs of PE investment. Forbes Magazine recently ran a story about the high barriers to entry for private equity investors.
Study shows that private equity’s leverage is a good thing when times get tough A Northwestern study notes that debt during a recession can be a very bad thing. But it reveals much more about the role of private equity. It seems leveraged companies with private equity backing can show success when times get tough. Professor…