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Dan Rasmussen - Private Equity Returns in Public Markets
Description
It has been a while since we discussed private equity on the show, so I was excited for this week’s conversation. My guest is Dan Rasmussen, the founder of Verdad advisers. Dan worked in private equity and has spent years studying the entire field.
Dan identified several key drivers of private equity’s outsized returns: size, value, and leverage. His firm uses these factors as a starting point to build a portfolio of public equities that behave like their private brethren.
We cover a ton of ground, discussing the prospective returns for equities, forecasting, and tons of investing strategies.
Please enjoy this conversation with Dan Rasmussen.
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Links Referenced
The Gospel According to Michael Porter
Books Referenced
Expert Political Judgment: How Good Is It? How Can We Know?
Superforecasting: The Art and Science of Prediction
Show Notes
2:03 – (First Question) – The current state of private equity investing
4:09 – The three myths of private equity
6:51 – Taking a deeper dive into the myth of growth through operational improvements
11:25 – Valuations for private market investment and where they’re going
14:03 – Private equity companies that have a higher chance of delivering results that exceed expectation
16:39 – Other observations on the private equity space that would be interesting to investors considering the asset class
19:33 – Importance of being very purposeful in picking your reference classes
19:42 – Subscribe to Dan
22:03 – How do the lessons Dan has learned in private equity translate to his investment strategies
25:21 – How do you apply purely technical, systematic thinking into public market investing
29:23 – Analyzing leverage