
Why Private Equity Is Ripe for Vanguard-Style Disruption - laurex
https://www.institutionalinvestor.com/article/b1h7r2s6bz1c3m/Why-Private-Equity-Is-Ripe-for-Vanguard-Style-Disruption
======
stevievee
"Yin said there are plenty of other simpler, 'passive-like' approaches to
investing in private companies to consider, including models that don’t use
leverage."

PE is debt in today's environment. The funding does not come primarily through
investment but through the partnerships that lead to leverage the business
would not normally be able to attain.

------
crb002
First you would need a PE exchange for liquidity. Good for startup share
liquidity pre-IPO also. Price it at auction, employees chose to take the $$ or
they have an immediate IRS basis. Most would sell a fraction to cashflow
taxes.

SEC friction on "public" is bad for the economy. Instead of binary we need the
reports/accounting under certain standards on a spectrum from fully private to
fully public.

~~~
TuringNYC
Serious question - why does anyone think PE can be disrupted if techies and
techie founders have not been able to disrupt our own broken illiquid equity
situation?

The only answer can think of is (pessimistically) that the system is broken
because it is profitable (to some) to keep it broken for many others. PE
wields far more influence Than pre IPO tech equity so I definitely don’t see
that being disrupted first.

