KKR & Co. Inc.

Friedberg support ×2 ▼ on 📈 Private equity model is broken E270 · 2026-04-24 ▶ 21:12

the equity got fully impaired. And then the debt is clearly impaired because you can see how the debt and the CLOs are trading, ... the sales team is just not hitting their targets.

Chamath support ×3 ▼ on 📈 Private equity model is broken E245 · 2025-10-03 ▶ 12:52

I think private equity is totally screwed... private equity in general is totally owned... What you find in most private equity portfolios are B and C companies run by C and D folks... The money's already leaked into private credit, which is the next big bubble that's building.

Chamath support ×3 ▼ on 📈 Endowment liquidity crunch forces discounted private-equity secondaries E234 · 2025-07-04 ▶ 55:30

What they will have to do in order to finance their budget in probably 18 months is start to actively sell their private equity portfolio, which by the way, from 2019 to this year, almost doubled from 20 to 40%. So an insane asset allocation, frankly, an asset misallocation at the top of the market to the most illiquid asset class. And when people sniff this out, what they're going to do is, Harvard was able to sell a billion dollars recently of private equity stuff and managers that they didn't want to support anymore at a 7% discount. There is no smart money on the street that's going to look at any private equity portfolio from Harvard without asking for 20, 25, 30, 35, 40% discount, because your back will be totally against the wall.

If I can compound capital at 12.5% incentive fee for a very long time, it's better than 20% for a short period of time.

Chamath support ×2 ▲ on 🏛️ Atkins SEC loosens accredited-investor gating and retail money reaches private markets E227 · 2025-05-09 ▶ 1:29:19

The optimal basket of the companies you'd want to own for the future, because of these rules and regulatory burdens, are partially public, partially private, and so you need a vehicle that can straddle both if you want to own it.

Jason support ×2 ▲ on 🏛️ Atkins SEC loosens accredited-investor gating and retail money reaches private markets E227 · 2025-05-09 ▶ 1:10:04

Yeah, it's retail investors and sovereign wealth funds outside the US seem to be the answer to that question.

these interval funds are really interesting because I think the minimum investment is like $50,000 or something like that. And the conditions to qualify for such a fund are much smaller. So there's many more investors that can come. And I look at it a little bit of like, this is the democratization of tech investing.

Friedberg support ×2 ▼ on 📈 Venture has to shrink to clear public-market alpha - fund sizes and GP count come down E227 · 2025-05-09 ▶ 1:10:09

At the end of the day, it is what it is, and you're going to see a reduction in venture dollars. And that's just the market normalizing.

Chamath support ×3 ▼ on 📈 Venture has to shrink to clear public-market alpha - fund sizes and GP count come down E227 · 2025-05-09 ▶ 1:12:35

at current course and speed, with the lack of IPOs and with the lack of M&A, you can't justify that asset class on its own, in my opinion, unless you think about it as like something that you're doing almost philanthropically

Friedberg support ×2 ▼ on 📈 Venture has to shrink to clear public-market alpha - fund sizes and GP count come down E217 · 2025-03-01 ▶ 1:04:10

As you guys know, we looked at the data, even the best venture capital firms in Silicon Valley, with the smartest, most sophisticated people investing in private assets, were not able to beat the NASDAQ over the last few years.

Chamath oppose ×2 ▲ on 🏛️ Atkins SEC loosens accredited-investor gating and retail money reaches private markets E217 · 2025-03-01 ▶ 1:05:45

I think what's gonna happen is not much of anything. I think the rules are gonna stay exactly where they are.

Friedberg oppose ×3 ▲ on 🏛️ Atkins SEC loosens accredited-investor gating and retail money reaches private markets E217 · 2025-03-01 ▶ 1:03:27

I would want to invest in everything. I'm not disagreeing with the notion. I'm pointing out what will happen, which is predatory a*****s will show up and they'll rip people off. That's what happens in every one of these f*****g markets.

Jason support ×3 ▲ on 🏛️ Atkins SEC loosens accredited-investor gating and retail money reaches private markets E217 · 2025-03-01 ▶ 1:01:54

So all I'm arguing for is more education and a path for those people who want to do it, to show five hours of education, 50 questions, that they have an above average knowledge of how private companies work, just so they have the choice to do that.

Chamath support ×2 ▼ on 🏛️ Carried interest loophole gets closed in the Trump tax bill E214 · 2025-02-07 ▶ 1:05:25

I mean, who's going to stand up and lay on the railroad tracks for being able to amortize a multi-billion dollar sports team purchase or that when you make a fund investment, you should get long-term cap gains treatment? Who is going to be that person in this? Nobody's going to stand up for these things.

Gavin Baker oppose ×2 ▲ on 🏛️ Atkins SEC loosens accredited-investor gating and retail money reaches private markets E206 · 2024-12-07 ▶ 38:17

And I do think if you were to allow ordinary Americans to buy private companies that are held to a lower standard of disclosure and reporting to public companies, like something would have to change

Friedberg oppose ×3 ▲ on 🏛️ Atkins SEC loosens accredited-investor gating and retail money reaches private markets E206 · 2024-12-07 ▶ 37:23

In fact, I think it's more likely than not that people are going to go market bullsh** securities and private markets and rip poor people off even worse

Imagine if Elon could raise for SpaceX from regular Americans. I'm sure he would have loved to do that if it wasn't crazy risky with the SEC

Jason support ×2 ▲ on 🏛️ Atkins SEC loosens accredited-investor gating and retail money reaches private markets E206 · 2024-12-07 ▶ 39:08

I mean, there's such an easy solution to this. You just do a sophistication test. People take a five-hour course and they answer 50 questions. The end, like a driver's license

Sacks support ×2 ▼ on 📈 Venture has to shrink to clear public-market alpha - fund sizes and GP count come down E199 · 2024-10-11 ▶ 1:03:09

The data that I think LPs look at shows that smaller venture funds tend to perform better for this reason.

Friedberg support ×3 ▼ on 📈 Venture has to shrink to clear public-market alpha - fund sizes and GP count come down E199 · 2024-10-11 ▶ 57:46

In a market where there is excess venture capital, where valuations are at a premium and where you don't see the exit path, the M&A or the IPO events that makes sense, that you can actually realize that model, you should take less capital and make fewer surer investments.

Chamath support ×3 ▼ on 📈 Venture has to shrink to clear public-market alpha - fund sizes and GP count come down E199 · 2024-10-11 ▶ 55:03

That just seems like it's really hard to do. Where is all of that value getting created? So I think that venture needs to go through a phase where it re-rationalizes.

Jason support ×2 ▼ on 📈 Venture's alpha does not clear liquid alternatives — LP money leaves the asset class E196 · 2024-09-20 ▶ 57:00

Instead of a Series A getting you 20% of a company, it got you 10 Instead of a C-check getting you 5%, it got you 1 There's no DPI possible.

Sacks support ×3 ▼ on 📈 Venture's alpha does not clear liquid alternatives — LP money leaves the asset class E196 · 2024-09-20 ▶ 54:25

For example, the average venture fund is like a 2X return. But if the entry prices were artificially double, then there goes your return right there. You get 2X becomes 1X.

Chamath support ×3 ▼ on 📈 Venture's alpha does not clear liquid alternatives — LP money leaves the asset class E196 · 2024-09-20 ▶ 58:22

I do think that we are in a situation where the average returns are going to decay by 50 to 100 percent because of what Sacks said and because of what you said.

Chamath support ×3 ▼ on 📈 You cannot build durable public equity value on a bet-making business E190 · 2024-08-02 ▶ 1:06:11

But I think it just goes to show you that in finance, these entities that try to sell a piece of the quote unquote general partner as a company, I just think that it's frankly that it doesn't work. And this is just an example, yet another example that there's not a lot of equity value in these businesses.