Do you consider adding private equity exposure through apps like moonfare?

Feel like this is a great opportunity at face value, and not really discussed / popular.

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Agree with GSK. I think many institutional investors are offloading PE because it hasn’t turned out to be a good investment and that chaff is being funneled to retail investors.

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Retail is exit liquidity for GPs for bottom tier PE companies. The 'good' PE companies (databricks , anduril , anthropic , ect..) aren't even available in retail market

You’re not getting the PE exposure you want to have unless you’re already wealthy enough to FIRE.

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No, I'm not considering it. PE doesn't seem to be investable for the ordinary buy and hold indexer. High fees, low diversification, low legibility on what you are getting, and a tendency to be unloading preexisting positions at inflated values seem to plague PE offerings that reach retail. The data don't seem to show it adds value in this context. I'll steer clear.

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Quite possibly!

yes, please tell me more about moonfare and what you'll advertise to me

likesmartfunny

It is an opaque market, that has still a lot of "gunpowder" not invested on the sidelines. Yet PE funds - whose investments are by nature capped more by investment opportunities than by capital availability - are increasingly looking at the retail consumer as a funding channel. I do not trust that system, I do not trust current private valuations, I do not trust their future mark to market and I do not trust that I will have fair exit /liquidity conditions. I'll steer clear.

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I think that there will be a lot of opportunities for successful PE investments that start in the current vintage. I am very skeptical that some tool for retail investors will see the benefit of that. PE is similar to RE - it is not well suited to indexing type investments. It is very asset specific with smart but high use of leverage. The type of investors that have historically done it have been flexible enough to provide open commitments in at least the 10s of millions of dollars to GPs they can trust and partner with. Just cause you call something PE doesn’t mean it will see historical PE returns.

High risk.

Maybe if you hit all other fire sufficiencies. But at that point just retire.

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