So does private equity own everything?

[_NOBODY_]

So does private equity own everything?​

00:00—01:18: Intro
01:18—03:05: Defining private equity
03:05—05:04: Private equity's huge footprint
05:04—06:23: How buyouts work
06:23—10:27: What happens to the bought out
10:27—13:14: How did PE get so big?
13:14—14:34: PE executives are rich af
14:34—16:33: But what about the returns?
16:33—17:57: Breaking news
17:57—19:21: Existential crisis
19:21—19:59: Stuffing their privates

 

[Hamartia Antidote]

Not sure what the issue is.

Private Equity firms are the ones that give startups money that no other resource would give.

For instance Elon Musk can't walk into a bank and say I need a Billion dollars to build a rocket company from scratch that is going to send stuff into space at 1/10 the price of all the other launch companies.

He can't run a tv ad that says everybody send $100 to some address in California either.

Private Equity gathers money from high net worth investors who realize they could not only see no return on their investment but could lose all of the original investment.

This risk is way outside the borders of investment grade ratings. These ratings are to keep the risk to "ordinary" people's money at a minimum. So investing public money in a company like SpaceX is basically not allowed.


Basically you should view Private Equities as the people on the tv show "Shark Tank" where they constantly get pitched with crazy investment ideas,

They had their chance to invest in "Ring" but blew it.

 

[Haldorss]

A lot of these people are nobodies and don't deserve it. There's nothing special about them.

 

[Hamartia Antidote]

A lot of these people are nobodies and don't deserve it. There's nothing special about them.

The investors or the firms?

I'm sure there are tons of private equity firms and I bet the average lifespan is only a few years before they make such risky investments that they lose all their client's invested capital.

 

[Haldorss]

The people in the associations representing them. seem to be tons of them across the west. There's also the middle class firefighter comment. It shouldn't be possible.