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Open original source ↗An all-private-all-the-time world will be a much messier world with even more opportunists and charlatans. Transparency is an investor’s friend. Darkness/obfuscation is not.
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Drop everything and read this article - @jasonzweigwsj describes how Hamilton Lane, in their new secondaries fund, buys assets at a discount, marks up the NAV *immediately* and earns their carry on *unrealized* (!!) gains. Let me translate via example: 1. you buy a house using OPM for $450K in cash (let's say you split profits with investors 50/50) 2. you say the market value is $500K the day after you bought the house (even though you just paid $450) 3. You pay yourself $25K on *unrealized* gains (years before you sell the house itself) 4. Next year you say the house is worth $540k. You pay yourself another $20K in *unrealized* gains - and so on... Democratization of private assets in full swing
LeylaKuni ↗