Chanel, Chanel. Do your fucking research. I’m a former private equity associate.
PE firms do not invest in behalf of everyday Americans. You have to be a qualified investor to invest and most funds have a $1-5M minimum investment. Add to that the yearly fees and its way out of reach for average Americans. The investments aren’t in any 401ks until some sort of exit, by which time most of the money has already been made. Retail investors buy at the overpriced IPO and the company is already hyper leveraged to the tits.
I listened for two minutes and had to stop because of the basic lack of research done here.
Other institutions such as retirement funds, pension funds, publicly listed ETFs, endowment funds, etc all invest in private equity. Plenty of everyday Americans are exposed to private equity knowingly or unknowingly.
Retirement funds, endowment funds, pension funds…yes they all have PE exposure. I left finance nearly ten years ago, but as far as I know, the closest an individual investor could get to exposure to accredited investor-like investments privately is through 1974 Act funds made to echo the private funds trades. I only saw hedge funds creating parallel funds like this for retail investors given that the underlying investments are public. I don’t know of any way for an individual who isn’t an AI to get true private equity (non-public) deal exposure directly themselves. You clearly are up to speed on things, has this changed in the last few years?
Things have gotten a lot worse in recent years due to the search for yield. Private equity players have the luxury of doing creative valuations with their holdings. They do not necessarily have to mark to market since their holdings are not publicly quoted. So they can show their investors steady and healthy returns in an ultra low interest rate environment like we’ve had until recently. With the interest rates climbing back up and a lot of their financing coming to maturity over the next few years, we might end up seeing a lot of these guys were swimming naked.
Count on it, they can’t help themselves. If Mark McGuire is juiced to the tits and hitting grand slams, Barry Bonds will also get on the juice. Same goes with investment performance. They all get over their heads in leverage every time.
Since you're familiar with the topic could you explain the potential reasons someone I know lost $200,000 from their pension (which they said wasn't technically a pension or a 401k whatever that means) during Trump's first term? They're using it as ammo to slam Trump in our talks about his good economic policies 😫 I said what if your fund managers were just bad with investments and they're like "I don't think so! My coworkers also lost!" and idk what to say, I work for myself 😂 never used any of that shit
A pension that technically isn’t a pension or a 401k…I assume this person is talking about their IRA. Weird fucking way to put it.
$200k is way too little to make an issue of at the scale of a pension. That sounds like an individual portfolio or this person prorated the losses to themselves.
If it is a pension like vehicle with multiple people, explain that the portfolio value going down doesn’t mean much unless it’s a realized loss or the loss is never recovered. Equities fluctuate all over the place during normal trading days.
If it’s an individual portfolio, which is what I expect, ask if those are actual realized losses or not. The comment about the coworker also losing is throwing me off though. I don’t think this person has any idea what they’re talking about, frankly.
Ok, I finally got to see them and ask for more details. Here's the breakdown:
"It's was a personal loss to my 401K, which is managed by a professional group. I regained it under Biden but now I've lost a significant amount in the past weeks. Awaiting my latest statement to see how bad.
I've told the organization that manages it to keep it at a mixed risk. Soon, I'll have to ask them to make it conservative so I don't lose everything.
My Amazon stock (20 shares) that I vested while working there are worth a third less.
Markets go up and down but not like this. I expect to have to work until I can't any longer due to health -- merely to survive.
People at the office in their upper 20s are also seeing losses. But they have more time to regain. I don't. And I don't have anyone to help support me.
I'm not the only one hurt. My friend is scared to death after losing more than I did. At least she has social security."
I believe someone posted something similar, if not the exact twitter video a while back. To ME personally, this sound more like vulture funds than general private equity. Every PE guy I've ever met had the same general strategy, leverage to the tits, invest EVERYTHING back into the company for 3-5 years, improve it as much as possible, and then exit at 3-5X their investment after paying off debt, rinse and repeat.
This specific strategy sounds more like the vulture fund where they try to extract as much as they can with as little effort, and structure the debt in such a way they can just dump it all on the bought company so they can leave it on it's desiccated carcass when they move on to the next company to scavenge.
And as I pointed out back then, vulture funds are a minority of funds in the PE world.
The industry term is “distressed debt/special situations” funds. They come in after a firm has been wrecked with too much leverage and they pay pennies on the dollar for the fulcrum security, which is usually some kind of debt that converts to equity.
The firms that wreck the companies in the first place are plain vanilla leveraged buyout shops. This specific tactic done overtly was big in the 80s. Now they’re more covert about it but the end result is the same.
Love you bro, but unless you're bluffing you make it sound like you've got quite a nice stack over there....With a the remaining DS eyes of the whole freakin world pointed at this site you might wanna keep your voice down, if you get my drift. They are a little trigger happy right now. Much smarter people than you have had their pants doxxed off before. Just my two cents of advice for you and other frogs! :-/
These things always manage to find a way to parasite off those that produce, especially when they manage to subvert the civil service to avoid accountability.
They did this to toys r us, and many other great businesses.
They tried to do it to GameStop but apes stopped them.
What they do is sneak in noles and then rot the company out from the inside out. Hiring hedge fund robbers to strip the companies clean, and then fire everyone and make hundreds of millions by bankrupting companies. Fucking over all the employees.
These people are evil. That's why I want the GME saga to fucking WRECK these hedge fund parasites
Chanel, Chanel. Do your fucking research. I’m a former private equity associate.
PE firms do not invest in behalf of everyday Americans. You have to be a qualified investor to invest and most funds have a $1-5M minimum investment. Add to that the yearly fees and its way out of reach for average Americans. The investments aren’t in any 401ks until some sort of exit, by which time most of the money has already been made. Retail investors buy at the overpriced IPO and the company is already hyper leveraged to the tits.
I listened for two minutes and had to stop because of the basic lack of research done here.
Other institutions such as retirement funds, pension funds, publicly listed ETFs, endowment funds, etc all invest in private equity. Plenty of everyday Americans are exposed to private equity knowingly or unknowingly.
Correct, however, she said 401ks specifically.
Retirement funds, endowment funds, pension funds…yes they all have PE exposure. I left finance nearly ten years ago, but as far as I know, the closest an individual investor could get to exposure to accredited investor-like investments privately is through 1974 Act funds made to echo the private funds trades. I only saw hedge funds creating parallel funds like this for retail investors given that the underlying investments are public. I don’t know of any way for an individual who isn’t an AI to get true private equity (non-public) deal exposure directly themselves. You clearly are up to speed on things, has this changed in the last few years?
Things have gotten a lot worse in recent years due to the search for yield. Private equity players have the luxury of doing creative valuations with their holdings. They do not necessarily have to mark to market since their holdings are not publicly quoted. So they can show their investors steady and healthy returns in an ultra low interest rate environment like we’ve had until recently. With the interest rates climbing back up and a lot of their financing coming to maturity over the next few years, we might end up seeing a lot of these guys were swimming naked.
Count on it, they can’t help themselves. If Mark McGuire is juiced to the tits and hitting grand slams, Barry Bonds will also get on the juice. Same goes with investment performance. They all get over their heads in leverage every time.
Since you're familiar with the topic could you explain the potential reasons someone I know lost $200,000 from their pension (which they said wasn't technically a pension or a 401k whatever that means) during Trump's first term? They're using it as ammo to slam Trump in our talks about his good economic policies 😫 I said what if your fund managers were just bad with investments and they're like "I don't think so! My coworkers also lost!" and idk what to say, I work for myself 😂 never used any of that shit
A pension that technically isn’t a pension or a 401k…I assume this person is talking about their IRA. Weird fucking way to put it.
$200k is way too little to make an issue of at the scale of a pension. That sounds like an individual portfolio or this person prorated the losses to themselves.
If it is a pension like vehicle with multiple people, explain that the portfolio value going down doesn’t mean much unless it’s a realized loss or the loss is never recovered. Equities fluctuate all over the place during normal trading days.
If it’s an individual portfolio, which is what I expect, ask if those are actual realized losses or not. The comment about the coworker also losing is throwing me off though. I don’t think this person has any idea what they’re talking about, frankly.
Sometimes you have to let tards tard.
Ok, I finally got to see them and ask for more details. Here's the breakdown:
"It's was a personal loss to my 401K, which is managed by a professional group. I regained it under Biden but now I've lost a significant amount in the past weeks. Awaiting my latest statement to see how bad.
I've told the organization that manages it to keep it at a mixed risk. Soon, I'll have to ask them to make it conservative so I don't lose everything.
My Amazon stock (20 shares) that I vested while working there are worth a third less.
Markets go up and down but not like this. I expect to have to work until I can't any longer due to health -- merely to survive.
People at the office in their upper 20s are also seeing losses. But they have more time to regain. I don't. And I don't have anyone to help support me.
I'm not the only one hurt. My friend is scared to death after losing more than I did. At least she has social security."
{placeholder, asking tomorrow}
I believe someone posted something similar, if not the exact twitter video a while back. To ME personally, this sound more like vulture funds than general private equity. Every PE guy I've ever met had the same general strategy, leverage to the tits, invest EVERYTHING back into the company for 3-5 years, improve it as much as possible, and then exit at 3-5X their investment after paying off debt, rinse and repeat.
This specific strategy sounds more like the vulture fund where they try to extract as much as they can with as little effort, and structure the debt in such a way they can just dump it all on the bought company so they can leave it on it's desiccated carcass when they move on to the next company to scavenge.
And as I pointed out back then, vulture funds are a minority of funds in the PE world.
The industry term is “distressed debt/special situations” funds. They come in after a firm has been wrecked with too much leverage and they pay pennies on the dollar for the fulcrum security, which is usually some kind of debt that converts to equity.
The firms that wreck the companies in the first place are plain vanilla leveraged buyout shops. This specific tactic done overtly was big in the 80s. Now they’re more covert about it but the end result is the same.
It’s pilpul time, someone is noticing.
If wallstreet wasn’t cheating DJT and GME won’t be a problem will they?
This is why I stack metal...
kekkin' my auss off
u/#catdance
Love you bro, but unless you're bluffing you make it sound like you've got quite a nice stack over there....With a the remaining DS eyes of the whole freakin world pointed at this site you might wanna keep your voice down, if you get my drift. They are a little trigger happy right now. Much smarter people than you have had their pants doxxed off before. Just my two cents of advice for you and other frogs! :-/
These bankers ruin everything for everyone.
These things always manage to find a way to parasite off those that produce, especially when they manage to subvert the civil service to avoid accountability.
They did this to toys r us, and many other great businesses.
They tried to do it to GameStop but apes stopped them.
What they do is sneak in noles and then rot the company out from the inside out. Hiring hedge fund robbers to strip the companies clean, and then fire everyone and make hundreds of millions by bankrupting companies. Fucking over all the employees.
These people are evil. That's why I want the GME saga to fucking WRECK these hedge fund parasites