Steven Kaplan

In the last episode of our podcast, we had a mini version of a never-ending debate on this show: whether private equity is good or bad. Afterward we talked about doing a full episode debating the pros and cons of PE until we realized, we’d already done it. The debate features Jeff Hooke, author of the book "The Myth of Private Equity," and Chicago Booth Professor Steven Kaplan, once referred to by Fortune Magazine as "probably the foremost private equity scholar in the galaxy."We’re taking a short summer break as we put together some fascinating episodes on the past and future of antitrust, the shortcomings of neoliberalism, and whether science and law are for sale in our capitalist system. In the meantime, we thought we might re-share some of our most thought-provoking episodes that are still relevant, maybe even more relevant, today. Our prior debate on private equity seemed like the perfect place to start. I hope you get as much out of it on a second listen as we did, and we’ll be back with brand new episodes soon. Thanks for listening.  

Steve Kaplan, a leading academic in private equity from the University of Chicago, shares crucial insights on investment strategies. He discusses why prestigious universities like Harvard and Yale are exiting private equity, analyzing liquidity issues. Kaplan provides a sharp breakdown of private equity versus the S&P 500, revealing performance myths and the importance of accurate metrics like the Kaplan-Schoar PME. He also emphasizes the benefits of co-investing and warns about overmarking. Kaplan's analysis is a must for understanding the complexities of today's investment landscape.

Is private equity a good investment? Jeffrey Hooke, Senior Lecturer at Johns Hopkins' Carey School of Business, claims that private equity has not been a lucrative investment for institutional investors such as pension funds or university endowments. Chicago Booth Professor Steven Kaplan, who has studied private equity for over 35 years, disagrees. Luigi and Bethany bring both Jeff and Steven on the show to debate this, and the evolution (or lack thereof) in reporting, transparency, and corporate governance in the private equity industry. What data and metrics should we look at when measuring private equity performance? How should we compare studies and analyses across time and different data sources? Moreover, does adding value to investors also necessarily mean adding value to society? Jeffery Hooke's new book "The Myth of Private Equity" is out now.