Urs Wietlisbach, Partner & Co-Founder of Partners Group, says the biggest difference between public and private markets is that the returns are better in private markets. Why is that? Urs argues there are three main reasons, starting with the fact that in private markets investors are privy to far more detailed information about the companies they invest in.
“If you would know as much about the public company as we do and invest into it, you should go to jail because you are an insider. We are like legalised insiders. It’s a private market so we can have as much information as we want.”
In this short video he outlines two more reasons why returns in private markets are better than returns in public markets.
1. In private markets investors can conduct far more detailed due diligence with better access to information.
2. There is better governance and engagement with management and boards around strategy.
3. There is alignment between investors and management who are seeking to achieve a sale of the business.
For more information about the Partners Group Global Income Strategy visit their website
Short and to the point - more information for investors and board focused on strategy leads to higher returns. Thanks for the video.