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Everyone is always whining that you can't invest in private markets and "those at the top" are raking in the fat profits, leaving us with just the crumbs. Now you can do it at normal market conditions from €1 and now it's not right again and people are looking for the fly in the ointment. EQT and Apollo are Champions League and have clearly outperformed in recent years. Of course, as always, no guarantee for the future, but "hands off" is really bullshit...
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@BisInDieLetzteFussnote Do you think that the PE funds at TR will give you access to the same private equities as "those at the top"?
Or - although it's not quite the same - do you think that you can get access to interesting start-ups via crowd investing, for example? This is the "last option" if the companies have failed all the professional investors 🤷♂️
What other company would do this? You can get a few big investors, or you can deal with 1000s of unpredictable small investors. These are huge efforts and costs, why should you go down this route as a private company?
Or why shouldn't Apollo, for example, do the deal with its major customers if their investment is sufficient?
Or - although it's not quite the same - do you think that you can get access to interesting start-ups via crowd investing, for example? This is the "last option" if the companies have failed all the professional investors 🤷♂️
What other company would do this? You can get a few big investors, or you can deal with 1000s of unpredictable small investors. These are huge efforts and costs, why should you go down this route as a private company?
Or why shouldn't Apollo, for example, do the deal with its major customers if their investment is sufficient?
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@TomTurboInvest absolutely to the point. I have already expressed my opinion on this several times here in this context. People simply don't understand what actually reaches private investors in PE-Fondsbreich🤷🏼♂️.
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@All-in-or-nothing I don't want to save anyone from their happiness, but you should question everything critically.
The private equity market is completely different to the public equity market, for example, there are no numerous analysts who regularly evaluate the companies as is the case with public (listed) equities.
And what is the difference between private equity and public equity? They are just as "normal" companies, except that they are not listed on the stock exchange.
Is that the reason why these companies are supposed to perform better than listed companies? If you compare the SmallCap Index with the PE Index over 30 years, the PEs don't do exactly that 😉
The private equity market is completely different to the public equity market, for example, there are no numerous analysts who regularly evaluate the companies as is the case with public (listed) equities.
And what is the difference between private equity and public equity? They are just as "normal" companies, except that they are not listed on the stock exchange.
Is that the reason why these companies are supposed to perform better than listed companies? If you compare the SmallCap Index with the PE Index over 30 years, the PEs don't do exactly that 😉
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@BisInDieLetzteFussnote Just out of interest, how much return have these PE funds made in recent years? All I know is that the MSCI World has actually done pretty well since 20025, averaging 12% p.a.
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@TomTurboInvest Unfortunately, it's obvious that you have no idea. These are private companies, i.e. simply companies that are not listed on the stock exchange, no failed companies or anything else. You can see the companies at EQT and there are very exciting things in there where you wouldn't get any exposure otherwise, e.g. animal health or IVF.
I have worked a lot with PE funds professionally and mostly supported CDD/FDD, including EQT. What they do is absolutely Champions League.
But that fits in with Allman's basic skepticism: what the farmer doesn't know, he won't eat. Don't always try to make everything look bad with half-knowledge, just try it out with 2-3% of the portfolio, then you'll be smarter.
I have worked a lot with PE funds professionally and mostly supported CDD/FDD, including EQT. What they do is absolutely Champions League.
But that fits in with Allman's basic skepticism: what the farmer doesn't know, he won't eat. Don't always try to make everything look bad with half-knowledge, just try it out with 2-3% of the portfolio, then you'll be smarter.
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@All-in-or-nothing But you understand everything? It's a new product in the mold. EQT and Apollo permanently make well over 15% with their flagships. Of course, there are now more parties involved and TR is also taking another bite. Nevertheless, a return above the market is still likely or at least possible. Just try it out or just leave it. But this constant badmouthing and nagging when someone makes new products and is innovative is so annoying in Germany.
Unfortunately, the previous speaker has written so much nonsense and you are "to the point". Sorry, but dangerous half-knowledge is not an investment strategy.
Unfortunately, the previous speaker has written so much nonsense and you are "to the point". Sorry, but dangerous half-knowledge is not an investment strategy.
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@BisInDieLetzteFussnote And you know exactly which investments end up in the P/E funds offered via TR? Honestly, there are countless reports and even more highly educated people who have regularly dissected P/E offerings for private investors down to the last detail in recent years. Conclusion: the "leftovers" end up with retail investors, market too opaque for retail investors, very low liquidity, etc. Sorry, but you can talk yourself up or blindly trust that things will be different this time (for whatever reason), that's not an investment strategy either😉. Just take a detailed look at the subject as a whole auseinandersetzen🤷🏼♂️. These instruments serve two main purposes: To place the last few ramshackle investments with someone AND to extract a decent amount of fees and commissions for everyone involved. Somehow TR also has to compensate for the PFOF ban, and high-priced P/E funds are an extremely innovative way to do this, I agree with dir👍🏻.
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@BisInDieLetzteFussnote will always remain so, even in these funds only the crumbs reach private investors, the profits are made by others.
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@BisInDieLetzteFussnote It's about failing in the sense of not meeting the requirements for flagship funds for institutional investors, for example. Previously, these investments were simply not placed, but now there is a great opportunity for the two P/E companies involved to finally get something out of them. Btw: for animal health and IVF, there are also plenty of established, listed companies in which you can invest virtually free of charge, which are subject to disclosure requirements and so on. It's not a pro-argument to be able to map something like this via opaque P/E funds😅🤷🏼♂️.
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