1Semana·

Beware of private equity funds at Trade Republic 🔍

Underperformance 😑

- PE funds usually underperform the NASDAQ 100 over 5 and 10 years.

- The stated target return of 12% p.a. is wishful thinking for advertising purposes.

Extremely high costs 💰

- 2.35% p.a. EQT + 5.00% exit costs

- 4.51% p.a. Apollo

- Comparison: iShares NASDAQ 100 ETF only 0.32% p.a.

- PE fund is up to 23 times (!!!) as expensive and eats up returns like Jumbo Schreiner at the All You Can Eat buffet.

Low liquidity 🤏

- Monthly sale possible, but no buyers guaranteed

- Sale can be prohibited if too many want to sell. You then have to keep the dirt because it is not traded on the stock exchange.

Further risks 🫣

- Apollo is not transparent and does not tell you what is in the fund. You should blindly & naively buy a fortune cookie.

Conclusion 🥱

Hands off. There are many better investments.

#traderepublic
#scalable
#privateequity
#fonds
#etf
#etfs
#nasdaq
#nasdaq100
$UST (-0,12%)
$CSNDX (-0,11%)
$EQQQ (-0,13%)
$QYLE (-0,64%)
#fail

29 Comentários

TomTurboInvest@TomTurboInvest

1Semana

It looks like the cash cow "ETF savings plan" is reaching saturation point, and now something new is needed...

If the returns were as high as promised and the vola so much lower, then this should be reflected in the share prices of listed PE companies, among other things 🧐
Strangely enough, it doesn't 😅

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MarTheRadi@marda304

1Semana

@TomTurboInvest My theory is that all the rotten PE companies are being packaged into a fancy product to sell to the "stupid" money private investors. Obviously you can't get rid of the institutional ones.

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TomTurboInvest@TomTurboInvest

1Semana

@marda304 As the first PE platforms took off months ago, I thought the same thing. It will be a similar set-up to the crowdinvesting projects, where only the companies that were uninteresting to professional investors at all previous stages will make an impact 🤷🏽‍♂️

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All-in-or-nothing@All-in-or-nothing

1Semana

@marda304 That is precisely the intention behind it. Once the cream pieces have been placed with institutional investors, the waste is simply sold to bona fide private investors at horrendous costs vertrieben🤷🏼‍♂️.

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Uwe@SchlaubiSchlumpf

1Semana

@TomTurboInvest I think you should invest directly in PE companies. Or even better, etfs via PE companies.

But for my part, it's enough to simply be broadly invested. PE will be worthwhile above all if I have good managers and access to them. I don't do that through any fund with any manager. For me, it has a similar flavor to a Sparkassen-Deka-Feltweit active-traded fund with the disadvantage of coming out worse

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Janus55555@Janus55555

1Semana

@SchlaubiSchlumpf worse than Deka, that's possible ?

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Epi@Epi

1Semana

To the point, thank you!

Maybe that will stop at least one interested party from buying? Then the post would have been worth it. 👍

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Mardo@Mardo8

1Semana

Great contribution. I would have liked a little more transparency from TR. Because TR must have come to this conclusion. The remuneration was probably too attractive.

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All-in-or-nothing@All-in-or-nothing

1Semana

Perfect contribution to the topic, thank you dafür🙏🏻. I find it absurd, bordering on criminal, that TR willingly offers such snot (well, presumably there's just a generous commission for it with THAT cost structure). Absolutely dubious in my view. And of course these are precisely the investments that institutional investors do not buy, otherwise they would never be offered to private investors.

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JoniBaboni ✅.@BisInDieLetzteFussnote

1Semana

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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TomTurboInvest@TomTurboInvest

1Semana

@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?

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All-in-or-nothing@All-in-or-nothing

1Semana

@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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TomTurboInvest@TomTurboInvest

1Semana

@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 😉

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Stewie G.@Stewie

1Semana

@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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JoniBaboni ✅.@BisInDieLetzteFussnote

1Semana

@Stewie EQT and Apollo >15% p.a.

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JoniBaboni ✅.@BisInDieLetzteFussnote

1Semana

@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.

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JoniBaboni ✅.@BisInDieLetzteFussnote

1Semana

@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.

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All-in-or-nothing@All-in-or-nothing

1Semana

@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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All-in-or-nothing@All-in-or-nothing

1Semana

@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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All-in-or-nothing@All-in-or-nothing

1Semana

@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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Ver todas as 3 restantes respostas

Jonas Hoffmann@JonathanFrank

1Semana

So when I saw these dubious explanatory videos from some German rapper, all my alarm bells went off 😀

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Robert@Iwant_money_423

1Semana

You're absolutely right...only Jumbo is dead...it didn't really spark with me.

If you stick with a simple ETF, you would have performed better than the expected return minus all costs in the last few years in any case.

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Techaktien@Techaktien

1Semana

@Iwant_money_423 But it doesn't look like that on his Instagram. Grok writes: "No, Jumbo Schreiner is not dead. The German actor and presenter, born in 1967, is still active - he last posted on Instagram in August 2025 and threads about a memorial post about an accident six years ago (which referred to friends of his, not himself). A rumor about his alleged death in October 2024 that circulated on social media was apparently a hoax and has not been confirmed by reputable sources. There is no date of death on his Wikipedia page, and his official presence remains alive."

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Robert@Iwant_money_423

1Semana

@Techaktien Thanks for the info! 😁

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Janus55555@Janus55555

1Semana

I still sell the best monkeys as stock pickers 🐵

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growth_guru_843@growth_guru_843

Well, many institutions also hold a significant stake in PE. Of course, it's not the perfect solution and the risks are not transparent - but in terms of diversification and fun, it's worth considering as a small(est) addition.

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