What exactly is it that you feel like investors can't get from a traditional portfolio of stocks and bonds that they need to add alternative assets to that portfolio. >> I think it's a combination of access and then uh outcomes. So just if you think about access, it's very difficult to access most corners of uh the alternative space in public form.And when we talk about alternatives broadly, you're talking about private real estate, private infrastructure, structured finance, private credit, and all things ...

Market Dynamics - Petershill Partners' delisting decision highlights issues in both private and public markets [1] Company Strategy - The company decided to return capital to shareholders [1]

Private Market Investment Opportunities - Private markets offer meaningful innovation, earnings growth, and diversification opportunities, especially given the concentration in public markets [4] - The value of the "private Mag 7" has grown by $12 trillion since the end of 2022, nearly quadrupling in less than three years [5] - Innovation in AI and other sectors is increasingly happening within private markets due to the need for patient strategic capital and the abundance of capital seeking investment opportunities [3] Valuation and Growth in Private Companies - Rapid revenue growth is being observed in the private AI company ecosystem, with companies reaching $10 million in annual revenue in approximately 12 months, a significant improvement from the previous decade [6][7] - Valuation expansion in certain parts of the private AI ecosystem is justified by the meaningful profitability improvements [7] Software as a Service (SaaS) and AI Investment Strategy - Software as a service is seen as a $3 trillion to $5 trillion opportunity [7] - Approximately 95% of software companies, as of March of this year, are private, suggesting that investing in private companies is crucial for participating in the AI trade [8] - A "barbell approach" is recommended, focusing on both the infrastructure layer (dominated by hyperscalers and semiconductors in public markets) and the application/platform technology layer, which is primarily in private markets [8][9][10][11] Public Market Investment Strategy - Active management is key for investing in the AI revolution in public markets, as the leaders of the future may differ from the leaders of the past [13][15] - Investment should be in a basket of high-quality companies with cash flow positive, durable earnings growth, and visible capex and revenue drivers [14]

Market Overview - The current market environment is characterized by a significant allocation of 70% of investments to the US, raising questions about whether to diversify into global markets due to the recent performance of the dollar [2][3] - The depreciation of the US dollar against other currencies is seen as an underreported story, influencing global investment strategies [4][5] Investment Strategies - Investors are considering reallocating funds to markets such as Japan, China, India, and Europe as a response to the dollar's weakness, although this does not imply a complete withdrawal from US investments [6] - The valuation of international markets appears more attractive due to currency movements, prompting interest in opportunities outside the US [7][8] Market Concentration - The US market is experiencing unprecedented concentration, with companies like Nvidia and Microsoft having market capitalizations larger than entire markets of other countries, except Japan [7][8] - The concentration of gains in the public markets among a few names is driving interest in private markets from both institutional and retail clients [9]

One other big topic uh that's come up just this week and maybe even more broadly has been and we've discussed the idea of of making private investments more accessible to the public investor class. Robin Hood uh announced plans uh to create a fund effectively that would buy shares in private institutions that then public investors, retail investors would be able to access. And I'm curious what you think about that.It'll ultimately need your approval. >> Yeah. Well, I salute again the president issued an exe ...

This is a really important conversation to be having, especially because on surveillance, we keep talking about the divide between public markets and the underlying economy, and it seems like it's growing in an increasingly dramatic fashion. And we keep wondering whether the economy is really struggling right now, at least by virtue of some of these labor market pictures. At the same time that you're seeing the oracles of the world do very well. Are you seeing that. Are you seeing the need for money to be a ...

Some of the world’s richest families are leaning more heavily on public markets with less exposure to private equity, a Goldman Sachs survey found https://t.co/rUj8cjBXpm ...

Market Trends & Dynamics - The availability of capital in private markets allows companies to invest for the long term and avoid being driven by quarterly earnings [2] - The future may see large manufacturing consumer companies remaining private [3] - There could be an index of private companies alongside the S&P 500 index [5] Investment Opportunities & Potential Risks - Private markets allow companies to obtain massive amounts of debt and equity to finance their business plans without accessing public markets [2] - Future defense companies are likely to remain private [3] - There is potential for a hundred industrial companies to remain private, offering investment opportunities [4] Regulatory Environment & Market Access - Some suggest democratizing private markets by encouraging companies to go public and reducing regulations around being public [1] - Increased transparency, market making, liquidity, and access in private markets are anticipated [5] - Current administration's steps are seen as potentially leading towards increased access to private markets [5]

Private Market Growth & Dynamics - Private markets are opening to the public, with Apollo Global at the center of this shift, viewing private markets as the next great investment frontier [1] - Apollo's assets under management grew from roughly $40 billion in 2008 to $840 billion today, outpacing the growth of companies like Google, Amazon, and Microsoft, driven by fundamental factors reshaping private markets [3][4] - The number of public companies has decreased from 8,000 to 4,000, and the S&P 500 is heavily concentrated, with 10 stocks representing 40% of the index, raising concerns about diversification [7][8] - Active management struggles to outperform the index, with 90% of equity market participants failing to do so for 20 years, leading to a shift towards passive investing and ETFs [9][10] Alternative Investments & Investor Access - Alternatives, traditionally defined as private equity, venture capital, and hedge funds, are now viewed as any alternative to publicly traded stocks and bonds [12][13] - Individual investors could eventually match institutional investors in market size, with family offices already having over 50% of their investments in private markets [16][17] - Retail investors are expected to participate in private markets indirectly through traditional asset management firms, leading to a convergence of public and private markets [20] - Criticisms of alternative investments include lack of transparency, illiquidity, high fees, and potentially decreasing returns as more money flows in [22] Private Credit Market - The private credit market is estimated to be $1.5 trillion if defined as direct lending and leveraged lending below investment grade, but $40 trillion if including investment grade [44] - Banks are heavily involved in private credit, as everything on a bank balance sheet, such as loans to customers and companies, is essentially private credit [36] - Long-dated investments, such as those in energy transition, manufacturing, and infrastructure, are increasingly being funded outside the banking system by institutional investors [41] Liquidity & Risk - The perception that private is risky and public is safe is challenged, suggesting both are risky and safe, with the primary difference being liquidity [60][61] - In the investment-grade private market, investors working with Apollo can access 100% of their money every 30 days [49] - Public markets may not be as liquid as perceived, with it taking 5 days to sell an investment-grade corporate bond [55] Investment Advice & Future Trends - The value of advice is increasing as investors are asked to consider new investment options, requiring advisors to provide guidance on navigating the complexities of public and private markets [67] - Guaranteed lifetime income is expected to become an important choice for individuals within their 401(k) plans, addressing the retirement income deficit [73][76] - The availability of capital in private markets is allowing companies, including AI and defense companies, to stay private longer, investing for the long term without being driven by quarterly earnings [81][82]

Company Vision - Ondo Finance aims to bring the future of public markets onchain [1] - The company envisions a "Wall Street without the walls," suggesting a more open and accessible financial system [1]