Conversations with Tyler

David Rubenstein on Private Equity, Public Art, and Philanthropy

Nov 17, 2021

David Rubenstein, co-founder of The Carlyle Group and a notable philanthropist, shares his insights on private equity, discussing the enduring '2 and 20' fee structure and why he passed on a young Mark Zuckerberg. He evaluates the challenges of modern philanthropy, contemplating a $200 million donation to revitalize Baltimore. Rubenstein also highlights the necessity of art museums amid funding struggles and reflects on the complex interplay of wealth and happiness, urging caution with cryptocurrency as an investment.

56:25

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Episode guests

David M. Rubenstein

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Episode notes

Intro

2min

Unpacking Private Equity Dynamics

15min

Exploring Zero-Sum Games in Finance and the Crypto Debate

2min

Financial Dynamics and Political Intersections

12min

Reviving Baltimore: The Power of Philanthropy

6min

Art Museums: Challenges and Significance

6min

Wealth, Happiness, and the Illusion of Financial Security

2min

Reflections on Education and Mentorship

10min

Baltimore native David Rubenstein is a founding figure in private equity, a prolific philanthropist, and author. From leveraged buyouts to his patriotic philanthropy to his leadership roles within institutions like the Smithsonian, Kennedy Center, and the National Gallery of Art, David has spent much of his life evaluating what makes institutions—and people—succeed.

He joined Tyler to discuss what makes someone good at private equity, why 20 percent performance fees have withstood the test of time, why he passed on a young Mark Zuckerberg, why SPACs probably won’t transform the IPO process, gambling on cryptocurrency, whether the Brooklyn Nets are overrated, what Wall Street and Washington get wrong about each other, why he wasn’t a good lawyer, why the rise of China is the greatest threat to American prosperity, how he would invest in Baltimore, his advice to aging philanthropists, the four standards he uses to evaluate requests for money, why we still need art museums, the unusual habit he and Tyler share, why even now he wants more money, why he’s not worried about an imbalance of ideologies on college campuses, how he prepares to interview someone, what appealed to him about owning the Magna Carta, the change he’d make to the US Constitution, why you shouldn’t obsess about finding a mentor, and more.

Read a full transcript enhanced with helpful links, or watch the full video.

Recorded September 30th, 2021 Other ways to connect

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