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Thread: My aunt makes 2 mil
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01-05-2015, 11:35 PM #1
My aunt makes 2 mil
Name dropping aside, why do PE types make so much money? Rather, why does anyone invest in PE's anymore? One of my BMO small cap canadian etf's has been performing at the rate as her KKR fund over the last 2 years, except they take 2+20 whereas the MER for the ETF is .3%.
In other words, how is PE even an industry? The exorbitant pay of the people that work there directly takes away from customer returns.Last edited by IVplay; 01-06-2015 at 06:49 PM.
"4ply is so quiche"
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01-06-2015, 03:14 AM #2spook Guest
him, too
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01-06-2015, 08:28 AM #3
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01-06-2015, 02:22 PM #4Registered User
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My aunt makes 2 mil
Does she work at KKR? Your question is pretty broad, at best. The PE landscape is changing rapidly so you may be on to something or not.
Either way PE has to deliver in a huge way to cover their outlandish fees.
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01-06-2015, 02:56 PM #5Registered User
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01-06-2015, 02:59 PM #6Registered User
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I have to get up to pe at least twice a night
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01-06-2015, 06:52 PM #7
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01-06-2015, 10:45 PM #8glocal
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That'd be too KIR.
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01-07-2015, 08:50 AM #9Registered User
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You're correct, poor returns are not a sustainable model. The PE space is over-supplied now and committed funds are almost certain to underperform - which will create an entirely different landscape over the coming years. It's happening the 2-20 is eroding.
I've recently transitioned into middle market PE (aspiring to do as well as your Aunt someday) and 9/10 times the results are well above market for the LP's and GP's and managers. Okay, maybe not 9/10 but you didn't mean that factually either. Let me say it another way; I am keenly aware of the increased pressure to perform and deliver above market results and the pressure within PE is far greater than I've seen in public or entrepreneur owned companies. It has to be, we're making big bets with OPM.
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01-07-2015, 09:16 AM #10
New York Times had a recent article on PE
Let me lock in the system at Warp 2
Push it on into systematic overdrive
You know what to do
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01-07-2015, 09:20 AM #11"One season per year, the gods open the skies, and releases a white, fluffy, pillow on top of the most forbidding mountain landscapes, allowing people to travel over them with ease and relative abandonment of concern for safety. It's incredible."
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11-08-2015, 09:04 AM #12
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11-08-2015, 09:22 AM #13
Over longer term periods (which is the only way to judge an industry with such a long term holding period) PE overall has outperformed the stock market (sp500 and russell2000). Not only that but the contour of returns is a good overall diversifier versus other asset classes. So there will always be interest. Fees have come down though. Key is getting a good PE manager and not relying on 'average'
It's dated but...
http://www.cambridgeassociates.com/n...ge-associates/Decisions Decisions
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11-08-2015, 01:30 PM #14
Personal Escort
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11-08-2015, 05:04 PM #15" ... I will do anything to go Skiing ... There Is no pride ... " (Miriam , 2005-2006 epic)
Dec21, 2016. LittleBigLost :
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Get out there and do stuff!
Enjoy life to the fullest!!
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11-10-2015, 10:40 PM #16features a sintered base
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Your aunt isn't a manager or her fund sucks if that's all she's pulling down. 4ply doesn't know there are levels he's never seen out there...
[quote][//quote]
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11-11-2015, 09:04 AM #17
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11-21-2015, 05:35 PM #18Registered User
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11-21-2015, 07:51 PM #19
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