The Rise of Private Equity

After the financial crisis, large institutional consultants told their clients they should have 40% of their money in private equity. That's a truly astronomical share given that this is microcap exposure. And what you've seen over the last decade is a further shift to where private equity reliably pays higher prices than the S&P 500. The blooms come off the rose for these technology companies that they overloaded on and second, the cost of debt is gone materially up at the same time.