1 00:00:00,960 --> 00:00:06,519 Speaker 1: You're listening to a Sheesis podcast. You're all about democratizing 2 00:00:06,640 --> 00:00:10,360 Speaker 1: access to private equity. I'm really curious to see why 3 00:00:10,440 --> 00:00:13,280 Speaker 1: you're so passionate about that. Well, so, for the last 4 00:00:13,320 --> 00:00:17,079 Speaker 1: twenty years, we've seen et aps increase from about one 5 00:00:17,160 --> 00:00:21,080 Speaker 1: trillion to about thirteen trillion dollars. In corresponding with that 6 00:00:21,120 --> 00:00:24,880 Speaker 1: growth in et apps, we've seen a similar, almost identical 7 00:00:25,079 --> 00:00:29,600 Speaker 1: increase in private equity, growing from one trillion to thirteen trillion. 8 00:00:30,120 --> 00:00:33,400 Speaker 1: And now so we've seen this parallel path of two 9 00:00:33,800 --> 00:00:38,760 Speaker 1: fairly large markets increase in size, considerably increase in size 10 00:00:38,800 --> 00:00:41,920 Speaker 1: thirteen acts. But yet we haven't seen any sort of crossover, 11 00:00:42,000 --> 00:00:47,080 Speaker 1: no linkage, and so we're excited to provide opportunity for 12 00:00:47,280 --> 00:00:51,559 Speaker 1: retail investors to finally access to this private market that 13 00:00:51,600 --> 00:00:55,240 Speaker 1: they've been precluded from investing in all these years. What 14 00:00:55,280 --> 00:00:59,120 Speaker 1: are the risks though, First and foremost the risk that 15 00:00:59,240 --> 00:01:01,760 Speaker 1: investor would have in our funds, which is the same 16 00:01:01,880 --> 00:01:04,200 Speaker 1: that they would have, for example, if they invest in 17 00:01:04,240 --> 00:01:08,839 Speaker 1: the QQ queues or other growth oriented indices that invest 18 00:01:08,840 --> 00:01:12,080 Speaker 1: heavily in tech and healthcare. Is the market movement? So 19 00:01:12,160 --> 00:01:17,200 Speaker 1: if interest rates rise tech in other securities which are 20 00:01:17,200 --> 00:01:21,160 Speaker 1: considered long duration. Long duration means you get more of 21 00:01:21,200 --> 00:01:24,399 Speaker 1: your benefits in the future. Those types of stocks are 22 00:01:24,440 --> 00:01:27,120 Speaker 1: going to suffer when interest rates go up, or when 23 00:01:27,160 --> 00:01:32,399 Speaker 1: this market volatility, or when markets contract. So you investors 24 00:01:32,400 --> 00:01:36,160 Speaker 1: tend to see when when investors, when investors get nervous, 25 00:01:36,480 --> 00:01:38,600 Speaker 1: they tend to move more to value, or they tend 26 00:01:38,640 --> 00:01:40,600 Speaker 1: to move to cash, or they tend to move to bonds. 27 00:01:40,800 --> 00:01:44,840 Speaker 1: When you come to private equities, you'll see it's probably 28 00:01:44,880 --> 00:01:48,720 Speaker 1: even more exacerbated in the marketplace like that. So for example, 29 00:01:49,760 --> 00:01:52,520 Speaker 1: one of the stocks, and even though the private markets 30 00:01:54,040 --> 00:01:56,560 Speaker 1: have been you know, showing with SpaceX, you know, some 31 00:01:56,600 --> 00:02:00,200 Speaker 1: of the secondary markets are showing SpaceX you know doing 32 00:02:00,320 --> 00:02:02,960 Speaker 1: well and so forth, which you know, we would expect 33 00:02:02,960 --> 00:02:05,240 Speaker 1: that you know, to do well based on a lot 34 00:02:05,240 --> 00:02:10,320 Speaker 1: of idiosyncratic conditions. Some of the pure benchmarks in this 35 00:02:10,840 --> 00:02:15,560 Speaker 1: market are moving. So sometimes you'll see privates not correspond 36 00:02:16,000 --> 00:02:18,360 Speaker 1: with those movements because the other public markets are moving 37 00:02:18,440 --> 00:02:22,639 Speaker 1: daily and privates may be seeing a stationary They tend 38 00:02:22,639 --> 00:02:25,000 Speaker 1: to move in step function. They can move into step 39 00:02:25,040 --> 00:02:28,240 Speaker 1: function both up and they can move into step function down. 40 00:02:28,840 --> 00:02:31,119 Speaker 1: And as we saw in twenty one and twenty two, 41 00:02:31,680 --> 00:02:34,640 Speaker 1: privates you know, we're moving in a step function down 42 00:02:35,160 --> 00:02:37,840 Speaker 1: now we're seeing you know, over the last couple of 43 00:02:37,919 --> 00:02:42,079 Speaker 1: years markets were more positive, more growth oriented. We saw 44 00:02:42,160 --> 00:02:46,359 Speaker 1: privates appreciating during twenty twenty three and twenty twenty four, 45 00:02:46,760 --> 00:02:49,560 Speaker 1: early part of twenty twenty five, and we'll see soon. 46 00:02:50,360 --> 00:02:53,959 Speaker 1: For example, probably our best litmus test is going to 47 00:02:54,000 --> 00:02:56,519 Speaker 1: be one of our holdings, Klarna. We'll see how it 48 00:02:56,600 --> 00:03:00,720 Speaker 1: comes up. We bought it an evaluation of market evaluation 49 00:03:00,800 --> 00:03:03,520 Speaker 1: twelve billion. Well, it's going to come out to peer 50 00:03:03,680 --> 00:03:07,040 Speaker 1: benchmarks like a firm. There's a company in Australia called 51 00:03:07,040 --> 00:03:12,240 Speaker 1: after Pay that was bought by Block. You'll we'll see 52 00:03:12,360 --> 00:03:15,880 Speaker 1: very soon how the market is valuing these and we 53 00:03:15,960 --> 00:03:20,240 Speaker 1: expect our stock to move comparable to these valuations as well. 54 00:03:20,320 --> 00:03:22,520 Speaker 1: So we'll have a we'll have a pretty good insight 55 00:03:23,200 --> 00:03:27,240 Speaker 1: fairly soon, probably within the next few weeks, how how 56 00:03:27,360 --> 00:03:31,239 Speaker 1: that particular private security is holding up or not. When 57 00:03:31,280 --> 00:03:34,520 Speaker 1: market information comes out and investing involves risk, you might 58 00:03:34,560 --> 00:03:36,960 Speaker 1: lose the money you start with. We recommend talking to 59 00:03:37,000 --> 00:03:41,280 Speaker 1: a licensed financial advisor. We also recommend reading product disclosure 60 00:03:41,320 --> 00:03:43,040 Speaker 1: documents before deciding to invest.