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19 results for “equity vs cash”
...it actually changes your portfolio. Then you get just like we had the Yale model, which was let's invest more any liquid alternatives. The tech model, I believe, and then we're starting to see some of this, is about changing your portfolio to hold le
24:00 / 25:02
from transcript24:00 – 25:02
...cash you need on your on your balance sheet. Now that the capital markets are opening. Now those can start to shift back and that chart that we put up with the maybe you don't need two years of cash on your balance sheet to see a positive return beca
47:56 / 49:13
from transcript47:56 – 49:13
...true equity return and public equity is a discounted or a lower expected return. The reason for that is simple, I think. There's no free lunch in this world. I think we can all agree on that. And you pay something for the luxury of in a public securi
29:13 / 30:18
from transcript29:13 – 30:18
...free cash flow. And so we're gonna see in the next few years opportunities to exchange debt for equity and recapitalize good companies and good industries. And the owner will either put in more equity or approach the creditors about exchanging some o
40:30 / 41:33
from transcript40:30 – 41:33
...true equity return and public equity is a discounted or a lower expected return. The reason for that is simple, I think. There's no free lunch in this world. I think we can all agree on that. And you pay something for the luxury of in a public securi
29:13 / 30:17
from transcript29:13 – 30:17
...of equity that are more downside protected. So not swinging for the 20% rate of return per year, but low to mid teens, net rates of return that give you more downside protection, things that look and smell like debt but have enough equity levers to g
56:14 / 57:19
from transcript56:14 – 57:19
...and invest that cash in private equity, venture capital, other high yielding assets.
24:46 / 25:53
from transcript24:46 – 25:53
...equity risk that dominates. You're obviously looking at things like equity beta as one of the considerations. You've also got to be thinking about how you charge for illiquidity. Because if you are investing in a liquid asset, you've given up some op
26:14 / 27:17
from transcript26:14 – 27:17
...equity portfolio, outside of the portfolio, or both? The existing model requires distributions to match contributions. Estimating both exits and drawdowns are an inexact science, leading investors to be more conservative in their deployment. Next gen
4:35 / 5:38
from transcript4:35 – 5:38
...Private equity is one and a half times. Assuming positive returns over a decade and an ROA above the cost of capital, leverage would boost private equity returns relative to the market. Size. Private equity owned businesses are smaller than those in
5:19 / 6:21
from transcript5:19 – 6:21
...is illiquid. While illiquidity may not impact returns directly, it likely helps investors avoid getting in their own way. DALBAR's quantitative analysis of investor behavior consistently shows that public market investors earn far lower returns than
6:05 / 7:06
from transcript6:05 – 7:06
...cash flow yield of owning that asset. Now, because private equity has evolved so much from the early days where that actually was true to today where private equity portfolio companies are by and large exited to other buyers, so they're not really be
16:17 / 17:35
from transcript16:17 – 17:35
...equity portfolios today. Private equity portfolios today are comprised of companies with a wide range of holding periods, from businesses GPs intend to buy, improve, and sell within a few years to those they intend to own and compound over time. Allo
1:32 / 2:42
from transcript1:32 – 2:42
...for free cash flow. There's been a emergence of a new way of thinking about private equity, which is which companies are likely to be valued highly by a success of private equity owner. That's something that's likely to continue. We think right now w
48:45 / 49:52
from transcript48:45 – 49:52
...equity. You have cash income, refinancings, shorter duration, three to five year assets, whereas in private equity, these are longer duration assets. The reason you see secondaries so often in private equity evergreen strategies is there's greater ab
38:11 / 39:16
from transcript38:11 – 39:16
...equity, right? So it's $300,000,000 mez deal on a $30,000,000 co invest alongside sponsor XYZ. That's the most common place. But in a lot of our non sponsored deals, what we find is we're the only real institutional capital because your counterpartie
41:08 / 42:22
from transcript41:08 – 42:22
...equity is worth an awful lot if the house price goes up over time. And that same kind of amplifying effect of credit was definitely used a lot by the industry when they had slow growing assets that they were fixing, and most of the capital structure
11:14 / 12:22
from transcript11:14 – 12:22
...is more challenging in a semi liquid box. As described on past episodes of Capital Allocators with Steve Nesbitt and Kip Daveer, highly diversified portfolios of secondaries and coinvestments may provide a vehicle that allows private wealth to access
4:36 / 5:42
from transcript4:36 – 5:42
...cash flows. If you look at the most sophisticated institutional investors, they may target a 20% exposure to private equity. They may utilize lots of different drawdown vehicles, and they're constantly matching distributions and new capital commitmen
32:54 / 34:02
from transcript32:54 – 34:02
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