The Long Term Investor
Are Private Markets Worth It? Vanguard’s Fran Kinniry on Risks, Rewards, and Realities (EP.202)
Apr 30, 2025
Fran Kinniry, a Senior investment executive at Vanguard known for his expertise in private investments, joins the conversation to dissect the allure of private equity and credit. He discusses the trend of companies remaining private longer and the implications for public markets. Kinniry emphasizes the significance of understanding the illiquidity premium and the criticality of manager selection for successful private investing. He also explores how these assets might one day find a place in retirement plans, reshaping investment strategies for the future.
34:30
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Quick takeaways
- Companies are increasingly remaining private longer, significantly altering the landscape of investment opportunities and public market interactions.
- Selecting competent managers in private equity is crucial due to significant performance dispersion, impacting the potential returns for investors.
Deep dives
The Shift to Private Equity
Companies are increasingly choosing to remain private longer, impacting the landscape of private equity. This shift has expanded the opportunity set for investors as the public versus private ecosystem evolves. Private equity investment is seen as a way to achieve comparable or superior returns while also providing diversification benefits to investment portfolios. The notion of owning market segments is challenged as investors come to realize that excluding private equity overlooks significant parts of the market.
