The continued blurring of public market and private market (due a wide range of theories and actuals including private company staying longer, more anti-trust regs incoming and its impact on public vs private companies M&A pipeline/strategy, cost of capital, expansion ways to finance business venture debt/SaaS AR factoring with Pipe/Capchase, ways to get liquidity along the journey for founders and employees minimizing the binary need to go public via Forge/ Destiny D/XYZ, SharesPost, CartaX, EquityBee, SecFi, Morgan Stanley ShareWorks, Nasdaq Private Market, and institutional to institutional block sales of equity etc)
“All large hedge funds will eventually invest in start-ups because the divisions between private and public markets are becoming irrelevant.
Big question is whether hedge funds (with their incoming VC arm) will have direct equity exposure like Tigers of the world or do it via ‘fund of funds’ structure…highly probable the latter, which implies VC or bigger hedge fund turned VC/private startup equity investment will operate similar to an “ETF-like structure for private company/private asset” space similarly to what former mgmt team of Forge Global/going public via SPAC in the next likely 30-40 days from today officially, with his latest venture Destiny D/XYZ).
Most funds probably does not have the operational process set up like that of Tiger Global and the likes to deploy with scale, speed, conviction and accuracy.
it’s likely easier for them to invest via ‘fund of funds’ structure (which in a sense, outsource the due diligence and ongoing diligence/reporting to the ‘fund of funds’ rather than build out internal corp function for this VS. rather than directly buying tokenized private assets/startup equities given the lack of data transparency, reporting requirements, downside for non- or late- compliance (at least have some loose macro structure for the market on this for non-compliance or late-compliance)…which will likely create the “ETF-like structure for private company/private asset’ is probably the most stress-free way to deploy massive amount of capital (i.e. funding) into this space while limiting downside non-binary risks for investors while the market/SEC sort out some of the risks mentioned above (transparency, reporting req’s, downside for compliance etc.)
Fun one from Julian Robertson (“Smart idea, grounded on exhaustive research, followed by a big bet”, ““If you’ve been playing poker for half an hour and you still don’t know who the patsy is, you’re the patsy”, “6. “There are not a whole lot of people equipped to pull the trigger…Someone can be a great analyst and yet a lousy trigger puller. Successful trigger pulling requires psychological control since most investing mistakes are emotional rather than analytical”, “When you manage money, it takes over your whole life. It’s a 24-hour-a-day thing…You’ve got a better chance surviving as a crack dealer in Chicago than lasting four years in the hedge fund business.”, “The concept of cumulative advantage is so important in understanding outcomes in life and yet it is so poorly understood”)
Intersection notepad 